Highest Dividend In 20-Yrs: LIC-Backed Bank Stock Gains After Robust Q4, Buy; TP Rs 2070: Jefferies

Leading global brokerage firm Jefferies has decided to upgrade rating of Kotak Mahindra Bank Ltd from neutral to "Outperform" after the bank reported healthy quarterly results and beat analysts' estimates. Kotak Mahindra Bank declared a net profit of Rs 4133 crore for the January-March quarter of 2023-24, up 18% as against Rs 3496 crore declared in the corresponding quarter of last year. The bank also recommended highest dividend after 2004 (The bank recommended Rs 2.40 per share dividend in 2004).

Current market price of Kotak Mahindra Bank share on BSE is Rs 1627.25 per share with intraday gain of 5.17%. Kotak Mahindra Bank share declined 15% YTD and 15% in last 1-year. FII/FPI have decreased holdings from 39.74% to 37.59% in March 2024 quarter. Mutual Funds have increased holdings from 10.91% to 12.82% in March 2024 quarter. Life Insurance Corporation Of India (LIC) has 6.46% stake in Kotak Mahindra Bank with 128,353,776 shares. More details below:

Kotak Mahindra Bank Recommends Dividend: As per the regulatory filing of Kotak Mahindra Bank dated May 4, 2024, "the Board of Directors of Kotak Mahindra Bank Limited ("Bank") have, at their meeting held today, inter alia, recommended a dividend of Rs. 2.00 per Equity Share of the face value of Rs. 5/- each, out of the net profits for the financial year ended March 31, 2024, subject to the approval of the members at the ensuing Annual General Meeting of the Bank."

Kotak Mahindra Bank Quarterly Results: The private sector lender witnessed a surge of 13% YoY in its net interest income at Rs 6909 crore as against Rs 6,103 crore reported in the similar quarter of last year. The net interest margin or NIM of Kotak Mahindra Bank arrived at 5.28% for Q4 financial year 2024. Kotak Mahindra Bank'S GNPA arrived at 1.39% as against 1.78% last year while the NNPA stood at 0.34% as against 0.37% last fiscal. Advances of Kotak Mahindra Bank soared 20% YoY to Rs 3.91 lakh crore as compared to Rs 3.25 lakh crore last fiscal. For the complete year of financial year 2024, Kotak Mahindra Bank's net profit zoomed to Rs 13, 782 crore from Rs 10,939 crore in financial year 2023, up 26% YoY.

Jefferies Recommends Buy: According to the foreign brokerage firm, "We upgrade Kotak to Overweight following supportive valuations post recent RBI actions. The impact of the same on FY25-26 growth should be minimal and the bank showed in Q4 print that core operating metrics remain strong with headline profit adjusted for one-offs was 8 per cent ahead of JPMe," the foreign brokerage said."

Kotak Mahindra Bank Share Performance: The 52-week high price of Kotak Mahindra Bank shares on BSE is Rs 2063.00 apiece (as on 31/05/2023) and 52-week low price is Rs 1544.15 apiece (as on 3/05/2024), respectively. Kotak Mahindra Bank shares declined 6% in last 6-months, fell 8% in last 2-years, and gave return of 15% in last 5-years.

Kotak Mahindra About: Kotak Mahindra is one of India's leading banking and financial services groups, offering a wide range of financial services that encompass every sphere of life. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd, as per its official website.

Disclaimer:

The stock has been picked from the brokerage report of Jefferies. 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 check with certified experts before taking any investment decision.