Bernstein has maintained a Market Perform rating on Kotak Mahindra Bank, with a target price of ₹1,950, indicating a downside of approximately 8.1% from the current market price of ₹2,121.20.
The brokerage described Q1FY26 as a weak quarter across key metrics, citing sharp compression in net interest margins and a multi-quarter high in credit costs. These factors led to return on assets (RoA) falling below 2%.
Adjusted for one-off gains in the year-ago period, Bernstein noted that earnings per share (EPS) declined 7% year-on-year, despite the bank reporting a healthy 14% loan growth during the quarter.
Disclaimer: This article is based on Bernstein’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
