External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>The aggregate performance of the Q1FY25 earnings season was largely on expected lines, with wide divergences across sectors and companies</li><li>Aggregate revenue/PAT grew by 7%/0% YoY and -2%/-8% QoQ across the HSIE coverage (~229 stocks)</li><li>Overall earnings were adversely skewed by the weak performance of OMCs, hence ex-OMCs, revenue/PAT grew by 9%/13% YoY and -2%/-5% QoQ.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The aggregate performance of the Q1FY25 earnings season was largely on expected lines, with wide divergences across sectors and companiesAggregate revenue/PAT grew by 7%/0% YoY and -2%/-8% QoQ across the HSIE coverage (~229 stocks)Overall earnings were adversely skewed by the weak performance of OMCs, hence ex-OMCs, revenue/PAT grew by 9%/13% YoY and -2%/-5% QoQ.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Quarterly Flipbook: Earnings growth moderates, demand pick-up holds the key

<ul><li>Kotak Mahindra Bank: Kotak Mahindra Bank’s (KMB) earnings were in line with estimates barring a one-off gain of INR27bn (net of tax) from the divestment of a stake in its general insurance subsidiary</li><li>Healthy loan growth (~19% YoY) was offset by a sharp decline in margins (26bps QoQ) and elevated credit costs (55bps annualised)</li><li>Deposit growth was muted (-0.3% QoQ) with a drop in current account balances and softer momentum in the active money pool (+2% QoQ), as the CASA ratio moderated further (43.4%, -210bps QoQ)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kotak Mahindra Bank: Kotak Mahindra Bank’s (KMB) earnings were in line with estimates barring a one-off gain of INR27bn (net of tax) from the divestment of a stake in its general insurance subsidiaryHealthy loan growth (~19% YoY) was offset by a sharp decline in margins (26bps QoQ) and elevated credit costs (55bps annualised)Deposit growth was muted (-0.3% QoQ) with a drop in current account balances and softer momentum in the active money pool (+2% QoQ), as the CASA ratio moderated further (43.4%, -210bps QoQ)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: Kotak Mahindra Bank, Bharat Petroleum Corporation, Indian Hotels, RBL Bank

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Operational Performance: KMB’s advances grew by ~19/4% YoY/QoQ.</li><li>Unsecured book (+29.5/2% YoY/QoQ) stood at 11.2% vs. 11.4% QoQ, largely owing to the RBI embargo.</li><li>Deposits growth was disappointing and remained flat QoQ. CASA Deposits de-grew by ~5% QoQ while TDs grew by 3% QoQ. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Operational Performance: KMB’s advances grew by ~19/4% YoY/QoQ.Unsecured book (+29.5/2% YoY/QoQ) stood at 11.2% vs. 11.4% QoQ, largely owing to the RBI embargo.Deposits growth was disappointing and remained flat QoQ. CASA Deposits de-grew by ~5% QoQ while TDs grew by 3% QoQ. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kotak Mahindra Bank Ltd. - NIMs Surprise Negatively, Growth Strong

<ul><li>Given the rising competitive intensity for low-cost and granular deposits facing the banking system, loan-deposit ratios at historical highs, and expected rate cuts towards the back-end of FY25, we believe banks are faced with the challenge of quality deposit mobilisation, elevated funding costs (lagged deposit re-pricing) and softer incremental spreads</li><li>As banks and NBFCs navigate the growth-margin trade-off, we argue that the combination of lower growth and lower spreads is likely to keep valuations under check, especially of mid-sized, high-growth franchises</li><li>While we expect system-wide growth to decelerate by 90-100 bps from FY24 levels, we are conservative on incremental spreads across our coverage universe, pencilling in 50bps of rate cuts starting Q4FY25 (blended FY25 NIMs at 12-15bps below FY24)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Given the rising competitive intensity for low-cost and granular deposits facing the banking system, loan-deposit ratios at historical highs, and expected rate cuts towards the back-end of FY25, we believe banks are faced with the challenge of quality deposit mobilisation, elevated funding costs (lagged deposit re-pricing) and softer incremental spreadsAs banks and NBFCs navigate the growth-margin trade-off, we argue that the combination of lower growth and lower spreads is likely to keep valuations under check, especially of mid-sized, high-growth franchisesWhile we expect system-wide growth to decelerate by 90-100 bps from FY24 levels, we are conservative on incremental spreads across our coverage universe, pencilling in 50bps of rate cuts starting Q4FY25 (blended FY25 NIMs at 12-15bps below FY24)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Leveraged Financials: The Liquidity Conundrum

<ul><li>Kotak Mahindra Bank (KMB) has underperformed the Bank Nifty by ~20% over the past few months on the back of three key developments: CEO transition, regulatory embargo on client acquisition through digital channels, and senior management attrition</li><li>Of these, we believe that the RBI-imposed embargo is the only material event that impacts forecasts - hence, we argue that the bank needs to disproportionately invest in restoring regulatory confidence, the most critical aspect that needs fixing</li><li>While investments in tech, and digital are likely to keep opex intensity elevated, we believe that KMB remains a high-quality franchise with adequate levers to sustain RoAs north of 2.3% (FY24: 2.5%).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kotak Mahindra Bank (KMB) has underperformed the Bank Nifty by ~20% over the past few months on the back of three key developments: CEO transition, regulatory embargo on client acquisition through digital channels, and senior management attritionOf these, we believe that the RBI-imposed embargo is the only material event that impacts forecasts - hence, we argue that the bank needs to disproportionately invest in restoring regulatory confidence, the most critical aspect that needs fixingWhile investments in tech, and digital are likely to keep opex intensity elevated, we believe that KMB remains a high-quality franchise with adequate levers to sustain RoAs north of 2.3% (FY24: 2.5%).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kotak Mahindra Bank: Sweating a high-quality franchise, upgrade to BUY

India

Kotak Mahindra Bank Limited is a full service commercial bank. The Bank offers a wide range of products and services such as personal, commercial, and corporate banking services, including deposit accounts, loans, and investments. Kotak Mahindra Bank serves customers in India.

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Kotak Mahindra Bank (KMB IN)

Quarterly Flipbook: Earnings growth moderates, demand pick-up holds the key

The aggregate performance of the Q1FY25 earnings season was largely on expected lines, with wide divergences across sectors and companies

HDFC Securities

HSIE Results Daily: Kotak Mahindra Bank, Bharat Petroleum Corporation, Indian Hotels, RBL Bank

Kotak Mahindra Bank: Kotak Mahindra Bank’s (KMB) earnings were in line with estimates barring a one-off gain of INR27bn (net of tax) from the...

HDFC Securities

Kotak Mahindra Bank Ltd. - NIMs Surprise Negatively, Growth Strong

Operational Performance: KMB’s advances grew by ~19/4% YoY/QoQ. Unsecured book (+29.5/2% YoY/QoQ) stood at 11.2% vs. 11.4% QoQ, largely owing to...

Axis Direct

Leveraged Financials: The Liquidity Conundrum

Our hypothesis remains anchored around strong retail deposit franchises and declining spreads over the next 12 months, coupled with the...

HDFC Securities

Kotak Mahindra Bank: Sweating a high-quality franchise, upgrade to BUY

While investments in tech, and digital are likely to keep opex intensity elevated, we believe that KMB remains a high-quality franchise with...

HDFC Securities

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