Kotak Mahindra Bank Ltd., incorporated in the year 1985, is a banking company (having a market cap of Rs 438450.78 Crore).
Kotak Mahindra Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 12799.59 Crore, down -20.87 % from last quarter Total Income of Rs 16175.87 Crore and up 3.87 % from last year same quarter Total Income of Rs 12323.15 Crore. The bank has reported net profit after tax of Rs 1806.09 Crore in latest quarter.
Investment Rationale
Kotak Mahindra Bank’s (KMB) broad-based and robust advance growth of 8% QoQ/14.7% YoY was encouraging. Strengthened liability franchise, liquidity buffer, built-up capabilities and portfolio quality provided confidence to not only catch up, but far outpace peers on growth, sequentially. Earnings surpassed expectations on asset quality front as well: i) Credit cost settled much lower at 63bps (vs 130bps in Q1FY22); ii) slippages contained at 2.4%; iii) GNPAs declined QoQ to 3.19% (vs 3.56%); iv) cumulative restructuring was contained at 54bps of advances. NIMs at 4.45% reflect strength of the liability franchise. Higher opex led by franchise investment led cost offsets strong fee income build-up. It maintains ADD with revised target price of Rs2,412 (earlier: Rs2,023) assigning it 4.75x FY23E book value with improving growth visibility. Key monitorables: 1) Behaviour of ECLGS and restructuring pool; 2) succession planning related to MD & CEO retirement in Dec’23.
Promoter/FII Holdings
Promoters held 26.0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 42.58 per cent, DIIs 15.29 per cent.
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