KOTAKBANK - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials & Profitability

Earnings Strength: Quarterly PAT stands at ₹3,282 Cr, slightly down from ₹3,552 Cr, but EPS remains strong at ₹67.8. Updated estimates show EPS at ₹96.31 with a revised P/E of 21.33

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Return Metrics

ROE: 15.4% — excellent, reflecting strong shareholder value creation.

ROCE: 7.45% — modest, typical for banks due to capital-heavy models.

Debt Profile: Debt-to-equity at 4.67 — expected for a bank, not a concern.

Dividend Yield: 0.12% — minimal, consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 30.3 (or 21.33 updated) Slightly rich vs. industry PE of 12.6, but justified by quality

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P/B Ratio ~3.48 Reasonable relative to book value ₹590.

PEG Ratio 1.25 Fairly priced — growth is moderately valued.

🔍 Conclusion: Kotak Bank is trading at a premium, but supported by strong fundamentals, digital leadership, and high-quality earnings.

🏦 Business Model & Competitive Edge

Core Operations: Kotak Mahindra Bank is a top-tier private sector bank offering retail, corporate, and investment banking, with a strong digital footprint.

Strategic Strengths

Healthy balance sheet and strong asset quality

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Focus on digital banking and fintech integration.

Institutional confidence: DII holdings up 0.48%, FII slightly down.

Growth Outlook

Analysts forecast long-term targets between ₹2,314 and ₹2,570

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Weekly return of 4.17% and monthly return of 2.66% show short-term momentum

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Six-month beta of 0.91 reflects stability

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📉 Technicals & Entry Zone

RSI: 64.3 — slightly bullish, nearing overbought.

MACD: 1.17 — positive momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — trend strength confirmed.

📌 Suggested Entry Zone: ₹1,980–₹2,020 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, digital leadership, and consistent profitability support long-term compounding.

Buy on Dips: Prefer entry below ₹2,020, especially if RSI cools off.

Monitor: Loan growth, NIM trends, and regulatory developments.

You can explore Kotak Bank’s live performance and updated EPS

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, Zee Business’s analyst commentary

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, and Trendlyne’s consensus targets

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for deeper insights. Let me know if you'd like a peer comparison with HDFC Bank or ICICI Bank next.

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economictimes.indiatimes.com

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www.zeebiz.com

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trendlyne.com

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