Kotak Mahindra Bank Shares: There was a sharp fall in the shares of Kotak Mahindra Bank on Tuesday, January 27. The stock slipped more than 5% to Rs 400.5 after December quarter results came in below market expectations. This is considered to be the biggest intraday fall in this stock after July 2025. After the quarterly results, the opinion of brokerage firms is divided regarding the shares of Kotak Mahindra Bank. Some brokerages have cut their estimates. At the same time, some still remain bullish on the long term.
December quarter results
Kotak Mahindra Bank on Tuesday, January 24 said that its standalone net profit in the December quarter stood at Rs 3,446.14 crore, which is a growth of about 4% on an annual basis. However, market analysts had expected this profit to be Rs 3,572 crore, which means the results were below expectations.
Asset quality continued to improve slightly. The bank’s gross non-performing asset (NPA) ratio came down to 1.30 percent in the December quarter, which was 1.50 percent a year ago. Net NPA also reduced to 0.31 percent, which was 0.41 percent in the same quarter a year ago.
What is the opinion of brokerage firms?
According to HDFC Securities, December quarter earnings were below expectations. Flat margins, sluggish fee income and relatively high operating expenses weighed on the results, although growth remained strong on both sides of the balance sheet. The brokerage cut earnings estimates for FY26 and FY27 by 5% and 2%, respectively. However, it has maintained its ‘Buy’ rating on the stock and has set a target price of Rs 495 for it, which shows an upside of 17% from the current level.
CLSA believes that Kotak Mahindra Bank’s growth is returning, but the increase in operating expenses after several quarters is a matter of concern. Emkay Global expects return on assets (RoA) to be around 1.9% in FY26, which may improve to 2% in FY27–FY28, provided margins and loss-making provisions normalize.
According to Motilal Oswal, income from Net Interest Income (NII) and other sources was as per estimates, although expenses were higher than expected. The bank has indicated strong growth in the coming quarters. The brokerage has maintained its ‘Buy’ rating on this stock and has set the target price for it at Rs 500. It is estimated that this stock will rise by about 18 percent from the current level.
share status
Shares of Kotak Mahindra Bank have fallen by more than 5 percent in the last one month, but have gained about 4 percent in the last six months. Its current PE ratio is still around 22.50. On Tuesday, the stock was trading as a top loser on Sensex and Nifty as well as Nifty Bank index.
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