Following the Q3 results, Kotak Mahindra Bank‘s share price increased by 10%. Should I buy, hold, or sell?
Following a solid third-quarter performance in the current fiscal year, Kotak Mahindra Bank’s shares increased by about 10% on Monday.
On the Bombay Stock Exchange (BSE), Kotak Mahindra Bank shares were up 9.31% at 10:22 a.m. to Rs 1,922.40.
Compared to Rs 3,005 crore during the same time previous year, the bank’s net profit increased by 10% to Rs 3,305 crore.
In Q3FY25, the lender’s net interest income (NII) climbed to Rs 7,196 crore, surpassing Rs 6,554 crore in Q3FY24. Additionally, this was risen 10% year over year (YoY). Additionally, the net interest margin for the third quarter was 4.93%.
The bank made Rs 13,427.58 crore in interest at that time, up from Rs 11,799 crore during the same period last year.
Is it better to buy, hold, or sell?
Numerous brokerages have expressed optimism on the bank’s Q3FY25 performance, indicating that the share price increase may continue in the near future. According to brokerage company Nuvama Institutional Equities, the bank’s profits “shall turn out to be among the best in the sector in our view” and provide both growth and quality.
“The key positives are a QoQ decline in slippage with a higher PCR, healthy loan growth, strong deposit growth, and a marginal uptick in NIM,” Nuvama continued.
It should be mentioned that Nuvama Institutional Equities has twice upgraded its previous “SELL” recommendation to a “BUY” rating for the bank’s shares. Additionally, a new target price of Rs 2,040 per share has been set.
Kotak Mahindra Bank’s loan and deposit growth in the third quarter was robust, according to Nomura Holdings, particularly given the challenging macroeconomic climate. It was deemed positive by the Japanese brokerage. It still has the stock rated as a “BUY.”
In an environment of low deposits and high non-performing loans, we think [the bank] provides growth, quality, and a safe haven. Despite enduring the RBI suspension, the bank has performed very well, submitting a solid Q3 report, Nuvama remarked.
Additionally, Kotak Mahindra Bank’s stock price was raised from “NEUTRAL” to “BUY” by Motilal Oswal. In contrast to its initial goal price of Rs 1,900, it has now established a revised target price of Rs 2,100.
Another brokerage, DAM Capital, raised the lender’s shares from “NEUTRAL” to “BUY,” with a target price of Rs 2,020. With a target price of Rs 1,950, Bernstein kept its market-perform rating on the company.
Emkay Global had the most divergent opinion, reiterating its “REDUCE” recommendation but raising the target price from Rs 1,700 to Rs 1,750.
