UBS has maintained its “Neutral” rating on Kotak Mahindra Bank, raising the target price to ₹1,950 from ₹1,800. With the current market price at ₹1,870.00, this implies an upside potential of approximately 4.3%.
The brokerage highlighted that the bank faces cyclical headwinds for its net interest margin (NIM) and current and savings account (CASA) ratio, while credit costs are rising. UBS also noted that Kotak Mahindra Bank’s sensitivity to rate cuts is relatively high compared to other covered banks.
Stability in its core business remains crucial for the bank’s potential re-rating in the near future, according to UBS.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions.
