Kotak Bank slides on weak Q4 earnings, downgrades

2 hours ago 1

Synopsis

The private lender reported a 14% dip in its standalone profit after tax (PAT) at ₹3,552 crore, from the same quarter last year. Net Interest Income (NII) increased to ₹7,284 crore for January-March, from ₹6,909 crore last year, up 5% in the period.

Kotak BankAgencies

CLSA also cited the recent run-up in Kotak shares as a reason for its downgrade to 'hold' from 'outperform'.

Mumbai: Shares of Kotak Mahindra Bank fell 4.6% on Monday - their highest single-day decline in eleven months - after weaker-than-expected fourth quarter results led to some analyst downgrades.The stock, which ended at ₹2,085 on Monday, was the top loser on the benchmark Nifty. The index was up 0.5%.

"Kotak Mahindra Bank's recent results have been weak, with moderation in growth, benign NII (Net Interest Income) traction and higher provision impacting earnings. This led to a drop in the stock," said Vishal Narnolia, assistant vice president of research at ICICI Securities, which has a 'Buy' rating on the stock, with a target price of ₹2,400.

The private lender reported a 14% dip in its standalone profit after tax (PAT) at ₹3,552 crore, from the same quarter last year. Net Interest Income (NII) increased to ₹7,284 crore for January-March, from ₹6,909 crore last year, up 5% in the period.

BofA Securities, Nomura, CLSA, JM Financial, and Elara Capital downgraded the stock after the results. Goldman Sachs, Citi, Macquarie, and Jefferies retained their bullish stances.

Kotak Bank Slides on Weak Q4, DowngradesAgencies

The recent run-up in Kotak shares caps upside as the lender is now trading at premium valuations, said BofA Securities. The stock is up nearly 17% in 2025 so far as against the Nifty Bank index's gains of about 8%.. "With near-term confidence around any meaningful growth outperformance waning, we see limited upside to multiples," said the brokerage.

CLSA also cited the recent run-up in Kotak shares as a reason for its downgrade to 'hold' from 'outperform'.

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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

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