ICICI Direct has given Buy recommendation for Kotak Mahindra Bank with a target price of Rs. 2500 in its research report issued on Jan 29, 2021
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 financial services value chain. CASA forms 60% of total deposits aiding lower costs Strong RoA of ~2%and RoE of 12-13% makes it a good profitable bank
We remain positive on fundamentals expecting healthy business growth ahead and maintain our BUY rating on the stock We value standalone bank at ~4.4x FY24E ABV and subsidiaries at ~Rs 520 post holding company discount giving SOTP target of Rs 2500.