Kotak Mahindra Bank shares fall over 4% as Q2 margins slip, NPAs rise. What brokerages say
Kotak Mahindra Bank shares fell over 4% to Rs 1,793.85 on NSE after the private sector lender after its net interest margin (NIM) moderated 11 bps sequentially to 4.91% and card delinquencies drove an increase in slippage run-rate.
«Factoring in slower growth and rising NPAs, we cut our earnings by 1-5% over FY25-27E, while we retain our REDUCE rating with TP of Rs1,700 rolling forward on 1.7x Sep-26E Standalone ABV and subs/inv value at Rs550/share,» Emkay Global analyst Anand Dama said.
Similarly, Nuvama has also reduced EPS by 9% for FY25E/26E and
reduced target price to Rs 1,615.
«Kotak reported a slight miss on earnings due to lower other income and 11bp sequential contraction in margin. Asset quality ratios deteriorated slightly, affected by higher slippages in unsecured and credit card segments. However, the bank expects recoveries from rural and secured businesses to mitigate the overall impact. Changes in the asset mix more towards secured products have affected the yields and margins, but the management continues to guide for mid-teen growth in unsecured lending,» Motilal said.
Stock Trading
A2Z of Stock Trading — Online Stock Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Dow Theory Made Easy
By — Vishal Mehta, Independent Systematic Trader
Stock Trading
Technical Analysis for Everyone — Technical Analysis Course
By — Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities
Stock Trading
Macroeconomics Made Easy: Online Certification Course
By — Anirudh Saraf,
