Shares of Kotak Mahindra Bank gained nearly 2% on Friday, trading at ₹1,977.90, after global brokerage firm UBS upgraded the stock to a ‘buy’ rating and raised its target price to ₹2,450.
UBS noted that India’s financial sector profit pool is set to nearly double over the next five years, with non-lending businesses such as asset management and wealth management expected to grow 1.4–1.7x faster than lending, amid a structural shift in household savings and investment patterns.
For Kotak Mahindra Bank, UBS highlighted its diversified presence across key financial services segments through its fully owned subsidiaries, making it one of the best plays in the sector. The brokerage cited the bank’s healthy growth outlook, easing margin and credit cost pressures, and superior return on assets (ROA) as reasons to expect faster growth and re-rating potential.
Alongside Kotak, UBS also expressed preference for Cholamandalam Investment and Finance Company (Chola) and Power Finance Corporation (PFC) among NBFCs, and SBI Life Insurance in the insurance space.
