Buy Kotak Mahindra Bank; target of Rs 1461: KR Choksey
KR Choksey’s research report on Kotak Mahindra Bank
Advances at INR 1849.4 bn grew at 21% yoy led by 28% growth in the retail book and 17% growth in the corporate book. The bank continued to deliver strong growth in CV and small business/PL/credit card book of 40% and 39% respectively. NII at INR 26.9 bn grew 16% yoy/ 4% qoq. NIMs (reported) at 4.2% contracted 10 bps qoq on account of pressure from cost of funds which increased ~16 bps qoq (vs. 12 bps qoq increase in funds yield).
We have also cut our growth and NIM projections and multiple for Kotak Prime given the latest management commentary on the lines of increased competition and unfavorable pricing. We maintain BUY.
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