Kotak Mahindra Bank’s stock price dropped by 2.81%, reaching ₹1,818.55 as of 9:21 AM today. The decline follows the announcement of the bank’s Q2 FY24-25 earnings, which, while showing 5% growth in net profit, fell short of market expectations.
Stock Price Details:
- Open: ₹1,850.00
- High: ₹1,855.00
- Low: ₹1,807.85
- Previous Close: ₹1,871.05
Key Factors Behind the Stock Drop:
- Q2 Results Below Expectations: Despite a 5% year-on-year (YoY) rise in net profit, Kotak Mahindra Bank’s Q2 results were below analysts’ estimates. The market had expected stronger earnings, leading to a sell-off following the announcement.
- Double-Digit NII Growth: The bank reported double-digit growth in Net Interest Income (NII), which was a positive aspect, but it wasn’t enough to offset concerns about other areas of performance that underperformed compared to expectations.
- Negative Brokerage Reactions: Several brokerage firms have expressed caution over the bank’s results:
- Morgan Stanley: Highlighted the underperformance in core operational metrics, stating the results were weaker than expected, driven by higher provisioning and slower loan growth.
- Jefferies: Pointed out the challenges faced by the bank in the retail lending segment, leading to concerns over its growth trajectory.
- Goldman Sachs: Noted the bank’s moderating loan growth, especially in the unsecured lending space, and cited this as a reason for the weaker-than-expected results.
Market Reaction:
Following the results and negative brokerage outlooks, Kotak Mahindra Bank’s stock opened at ₹1,850 and quickly declined, reaching a low of ₹1,807.85. As of 9:21 AM, the stock was down ₹52.50 (-2.81%), reflecting investor disappointment over the lower-than-expected earnings performance.
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.
