Kotak Mahindra Bank share price gains over 4% after Q4 results beat estimates. Should you buy, sell or hold the stock?
₹1,612.30 apiece on the BSE. Kotak Mahindra Bank reported a standalone profit for the quarter ended March 2024 at ₹4,133.30 crore, a growth of 18.22% year-on-year (YoY), while its net interest income (NII) increased 13% YoY to ₹6,909 crore. Its net interest margin (NIM) in Q4FY24 rose to 5.28% from 5.22% in Q3FY24.
Read here: Kotak Mahindra Bank Q4FY24 results: PAT jumps 18% YoY, NII rises 13%, board recommends ₹2 per share dividend Analysts have cited risks from the RBI restrictions on Kotak Mahindra Bank, however, they believe the stock valuations after the recent correction have become supportive. Here’s what analysts have to say on Kotak Mahindra Bank Q4 results and Kotak Mahindra Bank share price: JPMorgan upgraded Kotak Mahindra Bank to ‘Overweight’ following supportive valuations post recent RBI actions and senior management departure. The impact of the same on FY25/26 growth should be minimal and the bank showed in 4Q print that core operating metrics remain strong, JPMorgan said.
It believes the bank can continue to compound balance sheet at 16% CAGR over next 2 years and even factoring ROA normalization, it thinks bank earnings can compound at 16-17% CAGR over next 2 years with scope for upside driven by better opex control. Valuations at 10x F26E parent P/E are compelling for what is a high quality and growth compounding franchise, it said. JPMorgan has a target price of ₹2,070 per share on Kotak Mahindra Bank.
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