Kotak Mahindra Bank shares extend rally after robust Q3 results; should you buy or sell stock?

By: |
Published: January 22, 2019 10:55:20 AM

Kotak Mahindra Bank shares gained more than 3.15% to Rs 1,307.95 on BSE, after the bank reported robust Q3 results. We take a look at what brokerages have to say.

Taking stock of the firm’s Q3 results, global brokerage firm CLSA has retained a ‘Buy’ call on the shares with a price target of Rs 1,500. (Image: Reuters)

Shares of India’s major private sector lender Kotak Mahindra Bank extended rally on Tuesday morning, after the firm reported robust Q3 results for the October-December period. Kotak Mahindra Bank shares gained more than 3.15% to Rs 1,307.95 on BSE. Kotak Mahindra Bank has reported a robust 23% on-year growth in net profit to Rs 1,291 crore for quarter ended December 31, on the back of higher net interest income. The private sector lender had posted a standalone net profit of Rs 1,053 crore in the Oct-Dec quarter of the last fiscal.

Taking stock of the firm’s Q3 results, global brokerage firm CLSA has retained a ‘Buy’ call on the shares with a price target of Rs 1,500. CLSA believes that the bank can deliver a healthy 21% earnings CAGR over FY18-21. Macquarie has maintained ‘Outperform’ rating on the shares, and also revised the share price target to Rs 1,450 from Rs 1,325 earlier. Morgan Stanley said that it maintains equal-weight with a target price of Rs 1,365. “At bank level, the PAT grew 23% in line with estimates,” the firm noted. The firm noted that core PPoP growth came in at 25% driven by higher than expected opex growth.

Also read: Share Market Live: Sensex extends losses, Nifty near 10,900; Sun Pharma, Kotak Mahindra Bank top gainers

Total income for the bank rose to Rs 7,214.21 crore during the December quarter from Rs 6,049.02 crore in the year-ago period, Kotak Mahindra Bank said in a statement. “Net interest income (NII) for the third quarter increased to Rs 2,939 crore from Rs 2,394 crore in the same period a year ago. Net interest margin (NIM) for the quarter was at 4.33 per cent,” it said.

Among the major milestones for the group in the latest quarter was that total assets managed / advised by the Group as on December 31, 2018 crossed the Rs 200,000 crore mark, up 11% at Rs 203,222 crore, as per the bank’s stock exchange filing.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.