ICICI Direct recommended hold rating on Kotak Mahindra Bank with a target price of Rs 1500 in its research report dated May 02, 2019.
ICICI Direct's research report on Kotak Mahindra Bank
Kotak Mahindra Bank reported a healthy operational performance with PPP at Rs 2282 crore, up 13.1% YoY, on back of healthy NII growth & strong core fee income. Net interest income (NII) on back of healthy credit growth of ~21% YoY & improvement of 13 bps YoY in margins of 4.48% came in at Rs 3048 crore, up 18.1% YoY. Other income grew at ~10% YoY at Rs 1270 crore led by strong growth of ~14% YoY in core fee income. Controlled operational expenditure & lower provisions (led by write back in investment provisions) led to strong earnings growth of 25.2% YoY at ~Rs 1408 crore.
We maintain our HOLD rating with revised SoTP target of Rs 1500 (earlier Rs 1400) led by insurance (EV Rs7300 crore) and AMC upgrade. Hearing of case between bank and RBI postponed to January 2020 still remains an overhang.
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.
Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.