KOTAKBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | KOTAKBANK | Market Cap | 3,81,248 Cr. | Current Price | 383 ₹ | High / Low | 453 ₹ |
| Stock P/E | 28.2 | Book Value | 126 ₹ | Dividend Yield | 0.13 % | ROCE | 7.45 % |
| ROE | 15.4 % | Face Value | 1.00 ₹ | DMA 50 | 385 ₹ | DMA 200 | 403 ₹ |
| Chg in FII Hold | -2.96 % | Chg in DII Hold | 3.31 % | PAT Qtr | 3,446 Cr. | PAT Prev Qtr | 3,253 Cr. |
| RSI | 54.2 | MACD | -0.43 | Volume | 2,61,68,375 | Avg Vol 1Wk | 1,48,61,032 |
| Low price | 345 ₹ | High price | 453 ₹ | PEG Ratio | 1.16 | Debt to equity | 4.42 |
| 52w Index | 35.2 % | Qtr Profit Var | 4.28 % | EPS | 13.6 ₹ | Industry PE | 15.0 |
Entry Zone: 370 ₹ – 385 ₹ (near 50 DMA support)
Exit Guidance: 420 ₹ – 440 ₹ (resistance zone)
Holding View: Suitable for long-term holding with cautious monitoring of leverage and valuations
Positive
- Strong ROE (15.4%) highlights efficient shareholder returns
- PEG ratio of 1.16 suggests fair valuation relative to growth
- Quarterly PAT growth (3,253 Cr → 3,446 Cr) shows earnings momentum
- EPS of 13.6 ₹ supports profitability
- DII holdings increased (+3.31%), signaling domestic institutional confidence
Limitation
- ROCE of 7.45% reflects modest capital efficiency
- High debt-to-equity ratio (4.42) raises leverage concerns
- Dividend yield of 0.13% offers negligible income appeal
- Price below 200 DMA (403 ₹) signals medium-term resistance
- FII holdings decreased (-2.96%), showing reduced foreign investor confidence
Company Negative News
- Reduced foreign institutional participation may weigh on sentiment
- Valuation premium relative to industry peers limits upside potential
Company Positive News
- Strong quarterly profit growth boosts investor confidence
- Domestic institutional accumulation supports long-term stability
- Technical indicators (RSI 54.2, MACD -0.43) show neutral momentum
Industry
- Industry PE at 15.0, significantly lower than Kotak Bank’s 28.2 — sector valuations more moderate
- Sector momentum strong with 52-week index return of 35.2%
Conclusion
Kotak Mahindra Bank demonstrates solid fundamentals with strong ROE, fair PEG valuation, and consistent profit growth. However, modest ROCE, high leverage, and reduced foreign participation limit upside potential. Entry near 370–385 ₹ offers a risk-managed opportunity, with exits around 420–440 ₹ advisable. Long-term holding remains attractive if earnings growth sustains, though valuation monitoring and debt levels should be tracked closely.
This block is structured for seamless integration into your modular HTML workflow reports. Would you like me to also prepare a technical momentum rating module (RSI, MACD, DMA classification) so you can overlay both perspectives in one unified template?