Kotak Mahindra shares jump 10% as analysts applaud Q2 performance

Brokerage Motilal Oswal raised its rating on the stock to “buy” from “neutral” after a gap of 10 quarters, with a revised target price of Rs 1,650, citing the bank’s strong quarter, with lower provisions and higher treasury income driving earnings.

“With a strong liability franchise in place, high capital and steady asset quality keeps our view constructive, although balance on loan growth has to improve from here on,” Prabhudas Lilladher analysts said in a note.
MUMBAI: Shares of Kotak Mahindra Bank hit their upper circuit and were up by 10 per cent on Tuesday as brokerages gave a thumbs up to the private lender’s September quarter report card.

At 10:37 am, Kotak Mahindra shares were up by their daily limit of 10 per cent – logging their highest gains in seven months -- at Rs 1,557.30, while benchmark Sensex traded 0.14 per cent higher at Rs 40,202.52 points.

The stock is up nearly 25 per cent over the last one month, but is still down 7.6 per cent for the year to date.


On Monday, Kotak Mahindra Bank beat analysts’ estimates and reported a 26.27 per cent year-on-year (YoY) rise in standalone net profit at Rs 2,184.48 crore for the September quarter. Analysts polled by ET NOW had projected a profit figure of Rs 1,600 crore.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16.8 per cent to Rs 3,913 crore crore from Rs 3,350 crore in the year-ago quarter.

Brokerage Motilal Oswal raised its rating on the stock to “buy” from “neutral” after a gap of 10 quarters, with a revised target price of Rs 1,650, citing the bank’s strong quarter, with lower provisions and higher treasury income driving earnings.
ADVERTISEMENT

“We increase our FY21/FY22 earnings by 27 per cent/20 per cent, led by steady revenues and sharp decline in provisioning expenses, and introduce FY23 to our estimates,” the brokerage said in a note.

Prabhudas Lilladher retained its “accumulate” rating on the stock and raised its target price to Rs 1,503 from Rs 1,389 earlier .

“With a strong liability franchise in place, high capital and steady asset quality keeps our view constructive, although balance on loan growth has to improve from here on,” Prabhudas Lilladher analysts said in a note.

YES Securities raised its rating on the stock to “Buy” from “Add” earlier, and also increased the target price to Rs 1,670 from Rs 1,384 earlier.
ADVERTISEMENT
ADVERTISEMENT
READ MORE

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

Related Companies

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+