Most brokerages have maintained positive ratings.
The bank on Thursday reported standalone net profit of Rs 1,025 crore for the quarter ended June 30, 2018 a 12 per cent year-on-year growth.
An ETNow poll had pegged the figure at Rs 1,190 crore.Kotak Mahindra Banks shares ended down 1.2 per cent at Rs 1,333.4 on Friday.
CLSA said that valuations of Kotak Mahindra Bank are rich, but it sees a 24 per cent compounded growth over FY18 and FY21.Nomura expects the stock to consolidate in the near-term.We believe the bank will continue to grow cautiously, and risks to medium/long-term asset quality will be limited; hence it remains a long-term compounder, said Nomura, retaining its buy recommendations.In the near-term, recent stock outperformance (over 30 per cent year to date) has led to valuations moving to 25 times June 20 earnings, which is demanding; hence we expect near-term stock consolidation, added Nomura.Motilal Oswal has downgraded the stock to neutral from buy while keeping the target price unchanged at Rs 1,400.
The brokerage said valuations are at the top end of the band following the stocks surge over the last one year.