Antique and Motilal Oswal have given a BUY recommendation with targets of Rs 2,510 and Rs 2,500 respectively, while Nuvama has given a HOLD rating with a target of Rs 2,082. The bank's loan growth remained b, although Net Interest Margin (NIM) and non-interest income declined.
Kotak Mahindra Bank Share: Kotak Mahindra Bank's profit in the September quarter stood at Rs 32.5 billion, which saw a slight year-on-year decrease. Despite this, the bank's loan growth and deposit growth remained robust. Antique and Motilal Oswal have recommended buying the bank's stock, while Nuvama has given a HOLD rating. Brokerage firms believe that the bank's fundamental position is b, and credit costs are under control. If interest margins and non-interest income improve in the coming months, there is a potential for a 14-15% upside in the stock.
Profit Slightly Declined, But Business Remained Stable
Kotak Mahindra Bank reported a net profit of Rs 32.5 billion in the September 2025 quarter. This profit is 1 percent lower than the previous quarter and 2.7 percent lower than the same period last year. However, the bank's loan portfolio continues to grow. The bank achieved loan growth of 16 percent year-on-year and 4 percent quarter-on-quarter in this quarter.
A relief for the bank was the reduction in losses from bad loans, i.e., credit costs. Additionally, expenses were kept under control. However, income from interest, i.e., Net Interest Margin (NIM), declined, and other income, such as profits from investments or trading, remained weak.
Antique Stock Broking Maintains Confidence
Brokerage house Antique Stock Broking has recommended buying Kotak Mahindra Bank's share. The firm has set a target price of Rs 2510. Antique states that the bank's core business is b, and loan growth has been as expected.
The bank has kept its expenses and credit costs under control this quarter, which has not significantly impacted profits. Although there has been a slight decline in interest income, the bank's balance sheet and capital position remain b. Antique believes that while profits might be slightly lower in the near future, the bank's fundamentals are robust, and it will remain a reliable institution for long-term investment.
Nuvama's Cautious Stance, HOLD Recommendation
Nuvama Institutional Equities has shown a bit of caution regarding Kotak Mahindra Bank. The firm has given it a HOLD rating and set a target price of Rs 2082. Nuvama states that the bank's Net Interest Margin (NIM) has fallen more than expected, which is a weaker performance compared to other private banks.
Although the bank has controlled expenses, the pace of improvement in non-interest income (other income apart from interest) has been slow. Nuvama also mentioned that the bank reduced its expenditure after the restrictions on digital services, but maintaining this balance might be challenging in the future due to increasing competition.
Motilal Oswal Reiterates BUY Recommendation
Motilal Oswal Financial Services has also reiterated its BUY recommendation for Kotak Mahindra Bank and has set a target price of Rs 2500. According to the report, the bank's profit was in line with expectations, and interest income showed improvement. The bank's Net Interest Income was approximately Rs 73 billion, although NIM decreased to 4.54 percent.
The bank recorded an annual increase of 16 percent in loans and 14.6 percent in deposits. Furthermore, the share of Current and Savings Accounts (CASA) increased to 42.3 percent, which has further strengthened the bank's funding position.
Motilal Oswal believes that in the next two years, Kotak Mahindra Bank can achieve a 2 percent Return on Assets and a 12.7 percent Return on Equity. This means the bank can maintain its profitability, which is a positive sign for investors.
Investors' Focus in the Stock Market
Kotak Mahindra Bank shares are currently trading at around Rs 2187. According to the targets of over Rs 2500 set by Antique and Motilal Oswal, the stock could potentially rise by another 14 to 15 percent.
The bank's biggest strengths are its robust loan growth and declining credit costs. The bank consistently performs well in lending and recovery. However, the decline in NIM and weakness in non-interest income remain areas of concern.
