Kotak Mahindra Banks Q3 Results: Should you Buy, Sell or Hold the stock post earnings?

livemint.com:

Kotak Mahindra Bank share price gained up to 1% in morning trades on the BSE on Monday post Q3 Results over the weekend. Even though net profit missed estimates of some analysts, the same was due to one-offs. Kotak Mahindra Bank (KMB) reported standalone net profit growth of 7.6% YoY to ₹3005.

This was slightly lower than analyst expectations as Q3FY24 results for Bank include ₹143 crore provision (post tax) on applicable Alternate Investment Fund (AIF) investments pursuant to RBI’s circular dated 19th Dec 2023 . Consolidated net profit stood at 4,265 (7% YoY growth). Net Interest Income grew 16% year-on-year to ₹6554 Crore up 15.9% year on year was up 4.1% sequentially.

Net interest Margins that had fallen in Q2FY23 however now stood stable at 5.22% sequentially.\ Also read- Cipla shares jump 7% after Q3 earnings, hit new record high Some analysts though have cut their forward estimates however generally analysts have maintained their positive stance. Analysts at Motilal Oswal Financial Services have cut our FY24 and FY25 net profit estimates by 3.2% and 2.7% and estimate Kotak Mahindra Bank to deliver Return on Assets and Return on Equity of 2.4% and 14.4% by FY25. As per MOFSL Kotak Mahindra Bank delivered a mixed quarter with a miss in earnings due to high provisions, however, NIMs remained stable at 5.2% sequentially.

Asset quality remained stable with slippages declining sequentially. Kotak Mahindra carries additional Covid-related provisions. The Kotak Mahindra Bank continues to guide for steady growth trend and aims to improve the mix of unsecured loans to mid-teens, expressing confidence in the quality of the underlying portfolio, highlighted analysts.