Tech Mahindra, Kotak Mahindra Bank, RBL Bank, IndiaMart, Mastek Q2 Results Review: HDFC Securities

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..HDFC Securities Institutional Equities .Kotak Mahindra Bank - Soft quarter; embargo impact becoming evident Kotak Mahindra Bank Ltd.’s earnings were below our estimates, largely due to higher-than-expected credit costs (65 basis points) and lower other income. While the loan growth moderated to ~15% YoY, the deposit traction remained steady. Net interest margins continued to remain under pressure (-11 bps QoQ) due to reducing share of unsecured retail and rising cost of funds (+5 bps QoQ) and are likely to moderate further during FY25. The management remains upbeat about the corrective measures taken post the regulatory embargo, with key investments across tech functions, and expects the overall impact in line with the initial assessment. With the ambitious vision of becoming the third-largest private bank in the medium term, we expect investments to remain elevated in the near term to augment the balance sheet growth. We reduce our FY25/FY26E estimates by ~3% largely due to lower NIMs and elevated credit cost and maintain Buy with a revised SOTP-based target price of Rs 2,030 (standalone at 2.2x Sep-26 adjusted book value per share)..Tech Mahindra - Valuation amply prices in direction and pace Tech Mahindra Ltd.’s growth and margin trajectory improved yet remain a work in progress. Q2 growth and margin print were slightly ahead of estimates, supported by strong growth in 75% of the portfolio (ex-Manufacturing/Healthcare). The recovery gradient is on the expected lines, yet the ask remains steep. The margin improvement was led by strong IT segmental margin improvement, offsetting the drop in BPO margin (BPO ~16% of revenue and ~12% of operating profit), a drop in other expenses and flat sub-con expenses. Maintain Reduce on Tech Mahindra with a target price of Rs 1,480, based on 18 times Dec-26E earnings per share..Click on the attachment to read the full report:.HDFC Bank Share Price Gains As Analysts Say It's Better Placed To Withstand Retail Stress Cycle .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.

Tech Mahindra, Kotak Mahindra Bank, RBL Bank, IndiaMart, Mastek Q2 Results Review: HDFC Securities

The brokerage maintains 'Buy' rating on Kotak Mahindra Bank and 'Reduce' rating on Tech Mahindra.

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Tech Mahindra, Kotak Mahindra Bank, RBL Bank, IndiaMart, Mastek Q2 Results Review: HDFC Securities

The brokerage maintains 'Buy' rating on Kotak Mahindra Bank and 'Reduce' rating on Tech Mahindra.

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