Kotak Mahindra Bank Shares Sink 5% Despite Positive Brokerage View On Q4 Profit Beat — Check Target Price

Shares of Kotak Mahindra Bank fell 5% intraday on Monday, May 4, after the private lender reported fourth quarter results on Saturday. Kotak Mahindra Bank Ltd. posted a 13% growth in standalone net profit for the March quarter, exceeding estimates, as provisions declined and asset quality improved.

Shares of Kotak Mahindra Bank opened at Rs 378.90 and tanked nearly 5% to hit an intraday low of Rs 363 so far during the session. Shares last traded 2.23% lower at Rs 374.95 apiece on the NSE. The stock has risen 6.73% in the last one month, but has dropped 7.29% on a year-to-date basis and 0.43% in one year. The bank commands a market cap of Rs 3,73,191.36 crore.

Kotak Mahindra Bank Share Price
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Kotak Mahindra Bank's net profit rose to Rs 4,027 crore in Q4 FY26 from Rs 3,552 crore a year earlier., the lender said in an exchange filing on Saturday. Net interest income or the bank's core income rose 8% to Rs 7,875 crore from Rs 7,284 crore. Operating profit increased 7% to Rs 5,855 crore. The  bank also announced a dividend for FY26, subject to shareholder approval.

BofA maintained a 'Buy' rating at a target price of Rs 460, marking 19.8% upside from last closing price of Rs 383.75. The brokerage highlighted asset quality and margins improved in the quarter. Meanwhile, Morgan Stanley reiterated 'Overweight' with a target price of Rs 500, reflecting on slippages and credit costs. Macquarie has maintained 'Neutral' coverage at a target price of Rs 460, citing margins and credit costs.

BofA on Kotak Mahindra Bank

• The brokerage maintained 'Buy' rating  with target price of Rs 460

• In Q4FY26, profit after tax beat estimates, asset quality and margins improved
• Profit after tax beat was aided by NIM expansion and lower provisions
• Steady growth; RoA expands to 2.1%
• Expect loan growth momentum to pick up with recovery in unsecured and RoA expansion led by lower credit cost
  
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Morgan Stanley on Kotak Mahindra Bank

• The brokerage maintained 'Overweight' rating with target price of Rs 500

• Q4FY26 has been good quarter at attractive valuation
• Bank's profit after tax beat estimates; NIM, NII and Core PPOP beat estimates
• Slippages and credit costs fell sharply
• Commentary was confident
• Earnings resilience and attractive valuation make it one of our key picks amid macro risks

 
Macquarie on Kotak Mahindra Bank

• Macquarie maintained 'Neutral' with target price of Rs 460
• Easing credit costs to lift profitability
• Profit after tax have been above expectations on lower credit costs
• Credit costs decline led by improvement in retail segments
• Stable margins driven by better deposit profile.

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