Synopsis: Kotak Mahindra Bank found itself in the centre after multiple brokerages like Jefferies, CLSA, and Motilal Oswal shared their viewpoints on this bank.
In this article, we will try to understand the rationale behind these three opinions shared by the different brokerages. So, let’s dive into it and look more into their comments in detail.
With a market capitalization of Rs 4,28,073 crore, the shares of Kotak Mahindra Bank Ltd reached a day’s high of Rs 2161.50 per share, up 0.6 percent from its previous day’s closing price of Rs 2148.85 per share. Over the past five years, the stock has delivered a poor return of 39 percent, underperforming NIFTY 50’s return of 122 percent.
Analyst Comments
Leading brokerage, Jefferies, has assigned a Buy call on the stock and has raised its target price from Rs 2,550 to Rs 2,650 per share, signaling an upside potential of 23 percent from its previous day closing price of Rs 2,148.85 per share.
The brokerage cited that the Bank’s Profit, though, fell 3 percent YoY to Rs 3,300 crore, but it was supported by strong NII, lower costs, and better asset quality. Loan growth rose 16 percent YoY, while slippages dropped to 1.6 percent. Although Jefferies trimmed FY26–28 earnings by 2–3 percent, it highlighted that it sees Kotak’s estimated FY27 ROE at 13 percent, remaining lower than its peers.
Similarly, domestic brokerage house Motilal Oswal has assigned a Buy call on the stock and has fixed a target price of Rs 2,500 per share, signaling an upside potential of 16 percent from its previous day’s closing price of Rs 2,148.85 per share.
The brokerage cited that Kotak Mahindra Bank reported an in-line quarter, with net interest income, operating profit, and net profit meeting expectations. Lower treasury income was balanced by reduced expenses and provisions. Asset quality improved as slippages fell, and NIMs are expected to recover with deposit repricing and the CRR cut.
While the unsecured loan book declined, it is likely to bounce back as the lending environment strengthens. Additionally, the bank also guided for loan growth at 1.5–2x of nominal GDP, supported by strong retail momentum and steady CASA deposit growth.
Also, CLSA has maintained its Hold call on the stock and has fixed a target price of Rs 2,350 per share, signaling an upside potential of 9.3 percent from its previous day’s closing price of Rs 2,148.85 per share.
CLSA described Kotak Mahindra Bank’s Q2 FY26 performance as “mixed,” with treasury losses weighing on results but core operations showing resilience. Profit before tax was 3 percent below estimates due to these losses, though core PBT (Price Before Tax) was 2 percent higher.
Customer asset growth was steady at 13 percent YoY, and the 11 bps NIM drop matched expectations. Operating costs were well-managed, the CASA ratio stabilized after earlier declines, and asset quality remained stable. However, fee income stayed weak, and credit costs rose slightly.
Written by Satyajeet Mukherjee
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