Dolat Capital Maintains 'Buy' Rating On Kotak Mahindra Bank After Q2 Results

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Kotak Mahindra Bank Ltd. reported in-line operating metrics with net interest income growth of 12% YoY, net interest margin of 4.9% (-10 bps QoQ), and pre-provision operating profit growth of 10% YoY. Slippage increased to 1.9%, driven by higher credit card delinquencies. The sequential decline in PCR to 71% (-400 bps), however, helped limit credit costs at 65 bps, with in-line PAT and RoA at 2.2%. Retail unsecured book was flattish QoQ, owing to full impact of RBI order and de-growth in MFI book, which affected NIM by 11bps. 30- 35% of slippages were from cards book. Credit costs are expected to be stable in the near term and moderate thereafter. Additionally, the bank slowed down earlier in MFI lending and does not foresee any stress from PL portfolio. We tweak earnings, factoring slightly lower growth and higher credit costs for FY25E, offset by lower opex. Maintain ‘Buy’ rating with revised target price of Rs 2300 (from Rs 2230 earlier) valuing the standalone bank at 2.4 times Sep-26E adjusted book value (3.4x including subs). Rise in target price is mostly driven by improved subsidiary valuations..Click on the attachment to read the full report:.Kotak Mahindra Bank Q2 Review - Card Delinquencies Drive An Increase In Slippage Run-Rate: Motilal Oswal .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital Maintains 'Buy' Rating On Kotak Mahindra Bank After Q2 Results

The brokerage maintains ‘Buy’ rating on the stock and raises target price to Rs 2300 which is mostly driven by improved subsidiary valuations.

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Dolat Capital Maintains 'Buy' Rating On Kotak Mahindra Bank After Q2 Results

The brokerage maintains ‘Buy’ rating on the stock and raises target price to Rs 2300 which is mostly driven by improved subsidiary valuations.

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