Kotak Bank shares gain 30% since April as earnings outlook brightens
Kotak Mahindra Bank shares experienced a significant rise, reaching a record high as growth prospects improved. The stock has shown a substantial increase of nearly 30% since April. Analysts anticipate stronger earnings attributed to various finan...
By ET Bureau | Updated:
Agencies
Shares rise 3.86% to 457 on Thursday; stock has gained 10% in Oct and 30% this fiscal year.
Mumbai: Kotak Mahindra Bank shares hit a record high Thursday, extending a rally driven by improving growth prospects and expectations of stronger earnings. The stock has gained nearly 10% in October so far, its strongest monthly performance since March 2025, and nearly 30% since the beginning of April.
The shares closed at ₹457 on the BSE, up 3.86% from the previous close, after touching an intraday high of ₹460 a share. Kotak underperformed between 2021 and 2024, delivering largely flat returns, before gaining 25% in 2025. The stock is up around 7% so far in 2026.
Analysts expect earnings to improve, supported by credit growth, the deployment of funds raised through foreign currency non-resident (FCNR(B)) deposits and the transmission of higher lending rates. Improving asset quality, lower credit costs and better cost ratios are also expected to support profitability.
Axis Securities expects Kotak Mahindra Bank to deliver a return on assets of 2.1-2.2% and a return on equity of 12-14% over FY27-29. These metrics would rank second among large private sector banks, after ICICI Bank, the brokerage said. Siddharth Rajpurohit, lead analyst for banking and non-lending financials at Systematix Institutional Equities, attributed the bank's performance to a recovery in growth, easing credit costs and stable core margins.
