Sharekhan's research report on Kotak Mahindra Bank
The bank is reasonably confident to deliver loan growth of 1.5-2.0x the nominal GDP growth and sustain RoA over ~2% in the near to medium term. PL and CC delinquencies have broadly stabilised. Slippages in the MFI segment are likely to peak out over the next two quarters. Secured assets portfolio quality continues to remain stable. Growth rebound in the unsecured segment is likely to help the bank manage the margins and growth better than peers in FY26E. Also, recent appointments of senior management personnel hint at stability in the near future.
Outlook
We reiterate buy on KMB with a revised SOTP-based PT of Rs. 2,500. We believe balance sheet growth /profitability is expected to be better than peers. The stock is trading at 2.3x/2.1x its FY2026E/FY2027E core BV estimates.
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