- Kotak Mahindra reported a net income of 32.8 billion rupees in the first quarter, which is a 48% decrease compared to the same period last year. It missed the estimated net income of 34.97 billion rupees.
- The bank’s gross non-performing assets increased slightly to 1.48% from the previous quarter’s 1.42%, exceeding the estimate of 1.45%.
- Provisions rose significantly by 33% quarter-on-quarter, totaling 12.1 billion rupees.
- Operating profit stood at 55.6 billion rupees, showing a year-on-year growth of 5.9% and surpassing the estimated figure of 54.65 billion rupees.
- Interest income increased by 8.5% year-on-year, amounting to 138.4 billion rupees, slightly below the estimated 139.05 billion rupees.
- Interest expenses rose by 11% year-on-year to 65.8 billion rupees, slightly above the estimated 65.02 billion rupees.
- Other income saw a growth of 5.1% year-on-year, reaching 30.8 billion rupees, but fell short of the estimate of 31.72 billion rupees.
- Analyst recommendations for Kotak Mahindra include 28 buys, 11 holds, and 5 sells.
Kotak Mahindra Bank on Smartkarma
Analysts on Smartkarma, like Gaudenz Schneider, are closely following Kotak Mahindra Bank‘s performance in comparison to Bajaj Finance. In a recent report titled “Bajaj Finance (BAF IN) Vs. Kotak Mahindra Bank (KMB IN) – Trade Exit and Take Profit,” Schneider discusses a profitable mean-reversion trading opportunity between the two companies. The trade has yielded a notable +4.7% return as the price ratio reverted to its one-standard deviation band, demonstrating the potential of statistical arbitrage for investors interested in quantitative trading strategies.
In another report, “Bajaj Finance (BAF IN) Vs. Kotak Mahindra Bank (KMB IN): A Relative Value Play,” Schneider explores the relative value opportunity signaled by the price ratio between Bajaj Finance and Kotak Mahindra Bank. The deviation from the one-year average presents a potential trading opportunity, with a detailed analysis of trade setup, risk management, fundamental figures, and key events to guide investors looking for actionable insights in the current market environment.
A look at Kotak Mahindra Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Kotak Mahindra Bank is showing a promising long-term outlook with strong ratings in growth, resilience, and value. With a growth score of 4, the bank is positioned for future expansion and development. Its resilience score of 4 indicates a solid ability to weather market challenges, providing stability for investors. In terms of value, Kotak Mahindra Bank scores a respectable 3, suggesting that it is trading at a reasonable valuation relative to its fundamentals.
Kotak Mahindra Bank, a full-service commercial bank in India, offers a wide range of banking services to cater to personal, commercial, and corporate clients. Despite a slightly lower score in dividends and momentum, the bank’s overall positive Smart Scores reflect a sound foundation for continued growth and stability in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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