HDFC Bank may see a good re-rating over 3-4 years; Kotak Bank to remain range-bound: Rahul Malani

economictimes.indiatimes.com:

Rahul Malani, Banking Analyst, Sharekhan, says if one has an investment horizon of around three years, then this is a good entry point for HDFC Bank from a medium-term perspective. In the near term, it will continue to be guided by the news flows and the quarterly numbers. Malani does not see more than 10-15% upside in the next one to two years. But over three to four years, there is a scene for good re-rating. As for Kotak Mahindra Bank, the Street seeks a timeline for the lifting of the RBI embargo on issuing credit cards and onboarding more online customers via and also the overall submissions to the RBI were unclear. So, until and unless that clarity comes to the Street, Kotak Bank will continue to remain range-bound and trade with a negative bias.
Let us start off with Kotak because that is an out-and-out disappointment. Do you think that is much in the price, given that the stock has languished for quite some time now?
Rahul Malani: As you rightly alluded, the valuation mostly reflects all the intermittent headwinds. So, we do not feel that there will be a much negative reaction on the stock because the results were weak but that was on expected lines. However, the Street was looking at the timelines for the lifting of the RBI embargo, plus the overall submissions to the RBI that were unclear. So, until and unless that clarity comes to the Street, Kotak Bank will continue to remain range-bound and will trade with the negative bias.

What is the outlook when it comes to HDFC Bank? By and large, most of the