Large Cap Private Sector Bank Stock Trading 2.56% Down 52 Week High, Buy For 20% Gains: KR Choksey

KR Choksey has assigned a "Buy" on Kotak Mahindra Bank Ltd. (KMB), a leading private sector large-cap bank, with a target price of Rs. 2,330 apiece. The brokerage sees a decent upside of up to 20% from its current market price if purchased today at the current market price. Business momentum remains healthy; Lower expenses boost overall profitability, according to the brokerage firm. It has a market capitalisation of Rs. 3,86,901 crore.

Valuation & View

KR Choksey said, "We have factored CAGR of 17.1% in advances and 12.7% in profits over FY23-25E, respectively, and a RoA of 2.3% by FY25E. We expect the premium valuation for KMB to continue with a strong brand equity, positive outlook and consistent performance from a business perspective."

It added, "We maintain our target price at INR 2,330 per share (unchanged), using SOTP valuation and applying a P/B multiple of 4.0x to the FY25E adj. BVPS of INR 539.6 for the standalone business and INR 170 per share for subsidiaries, leading to an upside of 20.9% over the CMP. We maintain our recommendation of "BUY" on the shares of KMB."

Stock Outlook - Current Share Price, 52 Week High/Low

The last traded share price of KMB is Rs. 1,947.60 apiece, up 0.86% from its previous close of Rs. 1,930.95 apiece. The stock is trading 2.56% down its 52 week high of Rs 1,977.55 apiece, which it recorded on 18 November 2022. The stock's 52 week low is Rs. 1,631 apiece, recorded on 30 June 2022.

Stock's Returns Over The Past 5 Years

The stock has performed decently in the past 1 month as it gained 2.04% in 1 week and 11.57% in 1 month, respectively. It has given 9.69% positive return in the year. It has given 52.42% positive return in 3 years. In the past 5 years, it has given 57.9% positive returns.

Disclaimer - The stock has been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.