Share price of this large-cap bank stock and one of India’s leading financial services conglomerates moved up by 5.5 percent on BSE to hit an intraday high at Rs. 1,633 on the trading session of Monday, after reporting a rise in the net profit by 22% YoY and 25% QoQ.
With a market capitalisation of Rs, 3.23 lakh crore, at 12:33 p.m., the shares of Kotak Mahindra Bank Limited were trading in the green at Rs. 1,626.15, up by 5.1 percent.
The fluctuations in the share prices were observed after the Board of Kotak Mahindra Bank approved the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Monday.
The consolidated net profit of the company increased by 22 percent YoY to Rs. 18,213 crore in FY23-24 from Rs, 14,925 crore in FY22-23, while on a quarter-on-quarter basis, the PAT increased by 25 percent from Rs. 4,265 crore in Q3 FY23-24 to Rs. 5,337.2 crore in Q4 FY23-24.
The revenue from operations increased by 4.6 percent QoQ from Rs. 14,495 crore in Q3 FY23-24 to Rs. 15,156 crore in Q4 FY23-24, while it grew by 33.4 percent YoY from Rs. 42,151 crore in FY22-23 to Rs. 56,237 crore in FY23-24.
At the consolidated level, the Return on Assets (RoA) for FY23-24 was 2.66 percent and for Q4 FY23-24 was 2.92 percent, while the Return on Equity (RoE) for FY23-24 was 15.08 percent and for Q4 FY23-24 was 16.85 percent.
The total Assets Under Management (AUM) as of March 31, 2024, were Rs. 5,60,140 crore up 33 percent YoY over Rs. 4,20,880 crore as of March 31, 2023, while the Domestic MF Equity AUM increased by 58 percent YoY to Rs. 2,46,771 crore as of March 31, 2024.
The Current and Savings Account ratio or CASA ratio stood at 45.5 percent, as of March 31, 2024.
The bank completed the acquisition of Sonata Microfinance, an RBI-registered NBFC – Micro Finance Institution, for a total consideration of nearly Rs. 537.12 crore. With this acquisition, Sonata has become a wholly owned subsidiary of the Bank from 28th March 2024.
Further, the Board of the Bank has recommended a dividend of Rs. 2.00 per equity share having a face value of Rs. 5 (previously Rs. 1.5 per share), for the year ended March 31, 2024, subject to approval of shareholders.
CLSA, one of the well-known foreign equity brokerages in China focusing on asset management, alternative investments, corporate finance, etc., has upgraded Kotak Mahindra Bank from a rating of “Accumulate” to a “buy” recommendation, but it reduced its price target from Rs. 2,100 to Rs. 1,920.
Despite “near-term uncertainties,” CLSA has upgraded the stock; however, it does state that a substantial re-rating for the bank would only occur after the RBI ban is lifted.
Kotak Mahindra Bank Limited, together with its subsidiaries, is a diversified financial services group providing a variety of banking and financial services including retail banking, treasury and corporate banking, investment banking, stock broking, vehicle finance, advisory services, asset management, life insurance and general insurance.
In February 2003, Kotak Mahindra Finance Ltd., the Group’s flagship company, received banking license from the Reserve Bank of India (RBI), becoming India’s first non-banking finance company (NBFC) to convert into a bank – Kotak Mahindra Bank Ltd.
Written by Shivani Singh
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