Kotak Mahindra Bank Q4 Results Review - Robust Quarter; Undemanding Valuations: Dolat Capital

"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 a healthy quarter with net interest margin at 5.28% (+6 basis points QoQ), strong deposit growth at 10% QoQ (with 7% growth in <50 million deposits), and lower tax rate aiding return on asset of 3%. Excluding multiple one-offs this quarter (interest from IT refund, AIF provision write-back, higher syndication related fee, and lower tax rate), profit after tax would be higher by 8% versus our estimates and NIM would be stable QoQ. Management expects RBI restrictions (on new credit cards issuance and customer acquisition through 811) to not have any material impact on its business, with Rs 3-4.5 billion of profit before tax impact on a full year basis (~2% of PBT). Kotak Mahindra Bank continues to aspire for unsecured mix at mid-teens (11.8% currently). Given the near-term uncertainty over RBI action, we lower bank’s standalone multiple to 2.5 times and build in slightly high opex. Tweaking estimates, maintain ‘Buy’ rating with revised target price of Rs 2100 (from Rs 2230 earlier) valuing the standalone bank at 2.5 times FY26E adjusted book value (3.4 times including subs). Trading at 1.8 times standalone FY26E ABV, valuations are undemanding. .Click on the attachment to read the full report:.Kotak Mahindra Bank Q4 Results: Profit Up 17.6% On Higher Other Income.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."

Kotak Mahindra Bank Q4 Results Review - Robust Quarter; Undemanding Valuations: Dolat Capital

Excluding impact of interest from IT refund on NIM, margins were sequentially stable and better than expected, benefitting from stable cost of fund QoQ.

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Kotak Mahindra Bank Q4 Results Review - Robust Quarter; Undemanding Valuations: Dolat Capital

Excluding impact of interest from IT refund on NIM, margins were sequentially stable and better than expected, benefitting from stable cost of fund QoQ.

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