Anand Rathi has upgraded Kotak Mahindra Bank’s stock from ‘hold’ to ‘buy,’ raising its target price to ₹2,010 from the previous ₹1,950. The brokerage highlighted the bank’s standout performance in a challenging quarter, supported by strong loan growth and stable asset quality.
Kotak Bank’s core pre-provision operating profit (PPOP) recorded a 4.1% quarter-on-quarter (QoQ) growth, driven by faster loan growth and greater operating efficiencies. Anand Rathi projects the bank to deliver a return on assets (RoA) of 2.2% over FY25-27, underpinned by its strong operational framework.
The management has indicated that personal loan and credit-card delinquencies have stabilized, though microcredit delinquencies have yet to peak. Despite this, the brokerage remains optimistic about the bank’s ability to maintain stable credit costs at 0.6% of advances over FY25-27, thanks to its “squeaky-clean” franchise.
At the current market price (CMP) of ₹1,759.05, Anand Rathi’s target price of ₹2,010 implies a notable upside potential, reflecting the bank’s strong fundamentals and growth trajectory.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult with their financial advisor before making any investment decisions.
