Motilal Oswal (MosL) has upgraded Kotak Mahindra Bank’s stock to a ‘buy’ rating, citing steady performance amidst challenging macroeconomic conditions. The brokerage has set a target price of ₹2100, projecting significant upside potential from the current market price (CMP) of ₹1759.05.
The report highlights Kotak Bank’s robust business growth, backed by healthy net interest margins (NIMs), which improved by 2 basis points (bp) on a quarter-on-quarter (QoQ) basis. Additionally, the bank’s asset quality remains strong, with slippages showing a decline over the previous quarter.
MosL noted that the bank’s return on assets (RoA) outlook remains healthy, and the brokerage has marginally raised its earnings estimates. Kotak Mahindra Bank is expected to deliver a RoA of 2.2% and a return on equity (RoE) of 13.5% for FY26, according to MosL’s projections.
In conclusion, Kotak Mahindra Bank’s resilience and strategic performance have positioned it for long-term growth, leading MosL to upgrade its rating and increase its target price to ₹2100.
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.
