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Shares of Kotak Mahindra Bank fell as much as 3.6% to an intraday low of Rs 2,102.20 on the BSE in early trade on Monday
Kotak Mahindra Bank Share Price Today
Kotak Mahindra Bank Share Price: Shares of Kotak Mahindra Bank fell as much as 3.6% to an intraday low of Rs 2,102.20 on the BSE in early trade on Monday. The decline followed the bank’s announcement of a 14% year-on-year (YoY) drop in standalone net profit for the fourth quarter of FY25, which stood at Rs 3,551.74 crore, compared to Rs 4,133.3 crore in the same period last year.
Despite the decline in profit, the bank’s net interest income (NII) rose 4.5% YoY to Rs 7,283.57 crore. Total income increased 6.8% YoY to Rs 3,182.46 crore, while total expenditure jumped 14.4% YoY to Rs 11,240.03 crore.
On the asset quality front, gross non-performing assets (GNPA) stood at 1.42%, and net non-performing assets (NNPA) were at 0.31%, compared to GNPA of 1.39% and NNPA of 0.34% as of March 31, 2024.
The bank’s Net Interest Margin (NIM) came in at 4.96% for FY25 and 4.97% for Q4FY25. Average total deposits grew 15% YoY to Rs 4,68,486 crore in Q4FY25 from Rs 4,08,321 crore in Q4FY24. For the full year, average deposits grew 16% YoY.
What Do Brokerages Recommend?
Motilal Oswal retained a ‘Buy’ rating with a target price of Rs 2,500. It noted that while pre-provision operating profit (PPOP) met expectations, higher provisions led to a slight earnings miss. Still, asset quality improved and loan growth, although modest, was supported by a stronger-than-expected NIM. The brokerage expects the bank to deliver 2.1% RoA and 13.3% RoE by FY27.
Nuvama maintained a ‘Hold’ rating and raised its target price to Rs 2,350 from Rs 2,040. The brokerage observed that although NII and growth were below expectations, asset quality improved for the second consecutive quarter. While the stock has rallied 20% since Q3, Nuvama believes its current valuation is rich and justifies a more cautious stance, despite upward EPS revisions.
Elara Capital upgraded the stock to ‘Accumulate’ from ‘Buy’, with a new target price of Rs 2,330, up from Rs 2,100. It pointed to a soft Q4 but highlighted the bank’s overall steady FY25 performance. The firm remains optimistic about Kotak’s long-term prospects, citing strong asset quality trends and improved coverage as key positives.
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