Buy Kotak Mahindra Bank; target of Rs 2330: KR Choksey

KR Choksey is bullish on Kotak Mahindra Bank has recommended buy rating on the stock with a target price of Rs 2330 in its research report dated May 04, 2023.

Broker Research

May 05, 2023 / 14:45 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Kotak Mahindra Bank

Net Interest Income (NII) for Q4FY23 increased to INR 61,026 Mn, up 35.0% YoY (+8.0% QoQ). Net Interest Margin (NIM) for Q4FY23 was at 5.75% against 4.78% in Q4FY22, an improvement of 97 bps YoY (+28 bps QoQ). Pre-Provision Operating Profit for Q4FY23 was INR 46,474 Mn, a growth of 39.1% YoY/ 20.7% QoQ. The bank’s PAT for Q4FY23 stood at INR 34,956 Mn, an increase of 25.2% QoQ/ 26.3% YoY. Advances grew by 17.9% YoY/ 2.9% QoQ to INR 31,98,612 Mn as on March 31, 2023, from INR 27,12,536 Mn as on March 31, 2022. Overall, the overall deposits grew 16.5% YoY/ 5.3% QoQ at INR 36,30,961 Mn as of as of March 31, 2023, with CASA ratio at 52.8%. As on March 31, 2023, GNPA was 1.78% as against 1.9% as of December 31, 2022 & NNPA was 0.37% as against 0.43% as of December 31, 2022. Capital adequacy ratio of the Bank as per Basel III as of March 31, 2023, was 21.8% and Tier I ratio was 20.6%.

Outlook

We maintain our target price at INR 2,330 per share (unchanged), using SOTP valuation and applying a P/B multiple of 4.0x to the FY25E adj. BVPS of INR 539.6 for the standalone business and INR 170 per share for subsidiaries, leading to an upside of 20.9% over the CMP. We maintain our recommendation of "BUY" on the shares of KMB.

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