Kotak Mahindra Bank share price gains over 4% after Q4 results: Should you buy?
Kotak Mahindra Bank share price: The stock rallied 4.2% to ₹1,612.30 apiece on the BSE after reporting better than expected Q4 results.
Kotak Mahindra Bank share price: The share price of Kotak Mahindra Bank gained over 4% today after the lender reported better than expected Q4 results. The stock rallied 4.2% to ₹1,612.30 apiece on the BSE.
Kotak Mahindra Bank Q4 results
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The private lender reported a standalone profit for the quarter ended March 2024 at ₹4,133.30 crore, a growth of 18.22% year-on-year (YoY). Its net interest income (NII) increased 13% YoY to ₹6,909 crore and the net interest margin (NIM) in Q4FY24 rose to 5.28% from 5.22% in Q3FY24.
JP Morgan on Kotak Mahindra Bank
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Brokerage firm JPMorgan upgraded Kotak Mahindra Bank to ‘Overweight’ after supportive valuations following recent RBI actions and senior management departure. The brokerage said that the bank can continue to compound balance sheet at 16% CAGR over next 2 years and even factoring ROA normalization. Bank earnings can compound at 16-17% CAGR over next 2 years with scope for upside driven by better opex control, it said. JPMorgan put a target price of ₹2,070 per share on Kotak Mahindra Bank.
Emkay Global Financial Services on Kotak Mahindra Bank
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Emkay Global said that Kotak Mahindra Bank reported a huge 28% beat on PAT, mainly on treasury gains/debt syndication fees, reversal of AIF provisions and lower tax rate. The brokerage cut FY25E-27E growth estimates by 200 bps and said that it expects the RoA/RoE trajectory to slip to 1.9% - 2.3% / 13% - 14%, on higher opex/provisions. The brokerage retained ‘Reduce’ rating and cut Kotak Mahindra Bank share price target to ₹1,625 apiece.
