'Buy' Kotak Mahindra Bank Shares Maintains Motilal Oswal With 18% Upside — Check Target Price

Kotak Mahindra Bank’s leadership continues to strengthen digital capabilities, enhance segmentation, and maintain cost discipline. With 150-200 branches being added annually without increasing headcount, the bank remains focused on strengthening its retail business, diversifying fees, and sustaining RoA at above 2% during FY26-28E..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Kotak Mahindra Bank Ltd. reported a sharp 32 bp QoQ contraction in net interest margin and elevated credit costs (93bp) in Q1 FY26. However, we expect operating performance to recover in the coming quarters as SA/TD repricing takes effect and credit costs subside with a reduction in unsecured segment slippages. The bank is selectively rebuilding its credit card and PL portfolios, while retail, SME, and tractor portfolios continue to witness healthy growth, supporting a balanced mix. Current account and savings account remains healthy at ~41%, and sweep products are cushioning deposit cost pressures. Subsidiaries are emerging as a core strength, contributing 26% to PAT in Q1, with the mix projected to increase to 30% by FY28, driven by growth in the AMC, Prime, and Insurance subsidiaries. We have upgraded Kotak Mahindra Bank after being Neutral on the stock for almost five years in Jan’25 at Rs 1,759. While we estimate current year performance to remain modest we nevertheless estimate the bank to deliver 20% earnings cagr over FY26-28E. This in context to reasonable valuations will aid stock performance. We thus estimate Kotak Mahindra Bank to deliver robust return ratios, with RoA/RoE at 2%/12.8% by FY27E. Retain Buy with target price of Rs 2,400 (2.4x FY27E adjusted book value, including an SoTP of Rs 764 for subs)..Click on the attachment to read the full report:.Voltas Eyes Sequential Recovery Amid Market Challenges; Nirmal Bang Maintains 'Hold', Revises Target Price .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Kotak Mahindra Bank Shares Maintains Motilal Oswal With 18% Upside — Check Target Price

Motilal Oswal estimates Kotak Mahindra Bank to deliver robust return ratios, with RoA/RoE at 2%/12.8% by FY27E.

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