Shares of Kotak Mahindra Bank decline following news of a stake sale by the Canada Pension Fund

On BSE, the lowest price for Kotak Mahindra Bank shares was Rs 1,855, but they were later selling at Rs 1,891.70, which is 0.28 percent higher. At the end of the March quarter, 39.43% of the private bank’s shares were owned by foreign portfolio owners.

On Friday, shares of Kotak Mahindra Bank fell by almost 2%, but they quickly made up for their losses because of the high number of trades. Several reports said that the Canada Pension Fund, which owned 8,63,10,661 shares or 4.34 percent of Kotak Mahindra Bank as of March 31, wanted to sell about 3.3 crore shares, or 1.6% of the private lender, in the price range of Rs 1,792-1,886.

On BSE, the lowest price for Kotak Mahindra Bank shares was Rs 1,855, but they were later selling at Rs 1,891.70, which is 0.28 percent higher. At the end of the March quarter, 39.43% of the private bank’s shares were owned by foreign portfolio owners. Another 10.99% of the business was owned by mutual funds.

Trendlyne’s public data shows that the average price goal for Kotak Mahindra Bank is Rs 2,134. This goal shows that the stock could go up by 13% in the future.

The March quarter numbers for Kotak Mahindra Bank beat expectations for net interest income (NII), fees, operating expenses, and credit costs. Analysts said that the private lender had been getting good results one after the other, but they thought that the bank’s earnings might have reached their peak.

Nuvama Institutional recently raised its goal price for Kotak Mahindra Bank from Rs 1,980 to Rs 2,140, but it has kept its ‘Hold’ rating for the stock. Emkay Global said that its profit estimates for Kotak Mahindra Bank have been raised by 10–12% for FY24 and FY25, and it has also added estimates for FY26E.

Due to the normalisation of margins/LLP, we anticipate KMB’s RoA/RoE to return to its pre-FY23 high of 2.4%/14.0% to 2.1%/13%. Taking into account the change in top management, we have lowered our price to ABV multiple to 2.8 times FY25E ABV and kept our goal at Rs 2,000,” it said.

Ajith Kumar

Ajith Kumar

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