INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Brokerages maintained their bullish view on Kotak Mahindra Bank after the private sector lender on Wednesday reported a rise of
21.3 per cent in its consolidated net profit at Rs 1,747.37 crore in the second quarter ended September this fiscal
Mahindra Bank with a price target price of Rs 1,400, implying a potential upside of 19 per cent from the last closing price
in core profits, but investment provisions stood a drag
Strong CASA and capitalisation to aid share gains
contingencies were raised to Rs 359.71 crore for the quarter from Rs 252.86 crore parked aside for same period previous fiscal.
The bank
said provision towards advances/others (including provisions for exposures to entities with un-hedged foreign currency exposures) stood at
Rs 221.31 crore for the quarter, up from Rs 205.48 crore.
On a standalone basis, the net profit of the bank rose by 15 per cent to Rs
1,141.65 crore in Q2FY19 from Rs 994.31 crore in Q2FY18
We have reduced our target multiple to align with market conditions and the overhang of possible equity dilution
That said, we find KMB as an attractive long-term investment
