ICICI Direct has given Buy recommendation for Kotak Mahindra Bank recommended buy rating on the stock with a target price of Rs 2250 in its research rep with a target price of Rs. 2250 in its research report issued on Oct 23, 2022
ICICI Direct’s research report on Kotak Mahindra Bank
Kotak Mahindra Bank (KMB) is a powerful banking franchise, with promoter stake at ~26% and strong promoter led management. It has a presence across the financial services value chain. CASA forms ~56% of total deposits aiding lower costs • Strong RoA of ~2% and RoE of 11-12% makes it a good profitable bank
Outlook
We maintain BUY rating on the stock. We value standalone bank at ~3.75x FY24E ABV and subsidiaries at ~Rs 488 post holding company discount giving SOTP target of Rs 2250.