Buy Kotak Mahindra Bank; target of Rs 2500: Motilal Oswal

buy

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Motilal Oswal's research report on Kotak Mahindra Bank

Kotak Mahindra Bank (KMB) reported a standalone 4QFY25 PAT of ~INR35.5b (6% miss on MOFSLe), because of higher provisions (to shore up PCR, partly due to AIF provisions of INR560m). Consol. PAT stood at INR49b (5% QoQ growth and 8% YoY decline) in 4QFY25. NII grew 5.4% YoY to INR72.8b (largely in line). NIM expanded 4bp QoQ to 4.97% (MOFSLe: 4.92%). Advances growth was modest at 13.5% YoY/3.2% QoQ to ~INR4.27t, while deposits rose 11.2% YoY/5.4% QoQ. CASA mix improved 70bp QoQ to 43%. Fresh slippages declined 10.2% QoQ to INR14.9b (INR16.6b in 3QFY25 and INR18.7b in 2QFY25). GNPA ratio thus declined by 8bp QoQ to 1.42%, while NNPA declined 10bp QoQ to 0.31%. PCR increased 492bp QoQ to 78.1%.

Outlook

We estimate KMB to deliver an FY27E RoA/RoE of 2.1%/13.3%. Reiterate BUY with a TP of INR2,500 (premised on 2.5xFY27E, SoTP of INR770).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Kotak Mahindra Bank - 05052025 - moti