Goldman Sachs maintains a Buy rating on Kotak Mahindra Bank, forecasting a 22% upside with a target price of Rs 2286. Despite facing multiple challenges, including higher loan losses, slower loan growth, and headwinds from the RBI embargo, the bank’s core performance remained solid.
While asset quality showed signs of stress, particularly in the unsecured lending and microfinance (MFI) segments, loan growth (+15% YoY) and core PPOP growth (+12% YoY) remained healthy, outpacing peers. Goldman Sachs believes that the bank’s focus on commercial retail products offers a strong growth outlook for PPOP, making it an attractive buy.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
