DAM Capital has maintained a ‘Neutral’ rating on Kotak Mahindra Bank (KMB), while increasing the target price to ₹2,180 from ₹2,020, citing a rollover to March 2027 valuations. However, the brokerage noted that the stock currently offers no upside from the latest market price of ₹2,180.10.
The bank’s recent quarterly performance was described as modest, with net interest income (NII) remaining weak despite absorbing the personal loan portfolio of Standard Chartered. Loan growth came in below recent trends, impacted by a reduction in the corporate loan book and de-growth in the microfinance and credit card segments.
Average CASA (current and savings account) ratios also remained under pressure. DAM Capital has cut its earnings per share (EPS) estimates by 3–4% for FY26–27, factoring in slowing loan growth, pressure on net interest margins (NIMs), and the return of operating expenses.
While challenges persist—similar to those faced by peers—Kotak Bank lags in return ratio improvements due to its higher cost structure in the medium term. That said, the brokerage acknowledged the bank’s pristine asset quality and lower slippages in unsecured loans as positives.
For now, DAM Capital suggests waiting for a more opportune entry point, as the stock offers no immediate valuation comfort.
Disclaimer: This report is for informational purposes only and is not a recommendation to buy or sell any securities. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions.
