Kotak Mahindra Bank Ltd.
NSE: KOTAKBANKKotak Mahindra Bank Ltd.: A 30-second snapshot
Kotak Mahindra Bank trades at ₹377.4, 7.1% below its 200-DMA of ₹406.31 and down 9.69% over the past 12 months. Trailing PE of 19.45 sits mid-range among banking peers, while ROE of 11.39% is the second-lowest in the peer group; 5-year revenue contracted 11% though earnings grew 9.8% over the same period, indicating margin expansion accompanied by shrinking top-line volume.
P/E
19.5
Forward P/E
13.5
ROE
+11.4%
Debt / Equity
—
Profit Margin
+26.1%
Div. Yield
+0.1%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
58/100
News
8 headlines · 6 positive · 0 negative
Kotak Bank gets RBI nod to acquire 9.99 pc each in AU Small Finance, Federal Bank - ETLegalWorld.com
ETLegalWorld.com
RBI clears Kotak Bank to raise stake up to 9.99% in AU Small Finance, Federal Bank - The Economic Times
The Economic Times
Kotak Bank Stake in AU & Federal Bank Approved - Rediff MoneyWiz
Rediff MoneyWiz
Buy Kotak Mahindra Bank; target of Rs 480: ICICI Securities - TradingView
TradingView
Kotak Mahindra Bank Q4 FY26: Steady show, valuation turning reasonable - Moneycontrol.com
Moneycontrol.com
Recent context
- ·RBI approved Kotak Mahindra Bank to raise stakes to up to 9.99% each in AU Small Finance Bank and Federal Bank (May 7, 2026) — the dominant newsflow event, covered across 3 major outlets simultaneously.
- ·Q4 FY26 results were characterised as a steady quarter with commentary that valuations are becoming more reasonable (Moneycontrol, May 4, 2026); ICICI Securities published a named price target of ₹480 per share (TradingView, May 5, 2026).
- ·Despite 6 positive and 0 negative news items over the tracked period, the stock declined 11.76% over 3 months and remains below the 200-DMA — a divergence between news tone and observed price direction.
Strengths
- +Forward PE of 13.48 vs trailing PE of 19.45 — a 31% compression — reflects analyst consensus expectations of a meaningful earnings step-up in coming periods.
- +Profit margin of 26.05% is robust within the banking sector; 5-year earnings growth of 9.8% was achieved against a backdrop of revenue contraction, indicating cost and margin improvement.
- +RBI cleared Kotak Bank to acquire stakes of up to 9.99% each in AU Small Finance Bank and Federal Bank (May 2026), providing regulatory-approved inorganic growth optionality.
- +36-analyst coverage with a mean rating of 1.72 on a 1–5 scale (lower = more constructive) reflects broadly constructive institutional attention on the stock.
Weaknesses
- −ROE of 11.39% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0) and ranks 5th of 6 among banking peers; rising debt trend and consistency score of 32 out of 100 underscore an uneven profitability record.
- −5-year revenue growth of -11% represents top-line contraction; the gap between trailing PE (19.45) and forward PE (13.48) signals that a substantial earnings recovery is already embedded in current valuations.
- −Price has remained below the 200-DMA (₹406.31) with declines of 9.69% over 12 months and 11.76% over 3 months; the stock sits 16.73% below its 52-week high.
- −Quality score of 47 ranks 4th of 6 among sector peers; FCF was positive in only 3 of available tracked years, lagging comparables such as Bajaj Finance (53) and HDFC Bank (50) on composite fundamentals.
Open questions
- ?Is the 5-year revenue contraction of -11% a structural shift in Kotak Bank's business composition, or does it reflect a deliberate pivot toward higher-margin, lower-volume segments?
- ?Does the ROE of 11.39% — with zero years above 15% in tracked history — reflect a structural capital efficiency constraint, or is an elevated equity base from prior capital raises the primary driver?
- ?How might the RBI-approved stake acquisition optionality in AU Small Finance Bank and Federal Bank affect capital allocation, ROE trajectory, and dividend capacity over the next 3–5 years?
- ?Given that forward PE of 13.48 implies a significant earnings step-up from the trailing 19.45, what growth assumptions are embedded in the current consensus, and how does the valuation change under a miss scenario?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| KOTAKBANK | Kotak Mahindra Bank Ltd.You're viewing | 19.5 | +11.4% | 47 |
| Industry avg | across 5 peers | 31.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.6 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.8 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 66.2 | +11.3% | 20 |
Technical state
Current price
₹377.40
SMA 50
₹375.75
SMA 200
₹406.31
RSI (14)
45.8 (neutral)
From 52w high
-16.7%
1Y return
-9.7%
3M return
-11.8%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE of 11.39% ranks 5th of 6 among listed banking peers and has not exceeded 15% in any tracked year (roeYearsAbove15 = 0); debt trend is classified as rising and consistency score is 32 out of 100.
- medium5-year revenue growth of -11% indicates top-line contraction over the medium term; forward PE of 13.48 vs trailing PE of 19.45 implies the market is pricing in a material earnings recovery that is not yet reflected in historical figures.
- mediumPrice of ₹377.4 is 7.1% below the 200-DMA of ₹406.31; down 9.69% over 12 months and 11.76% over the past 3 months; 16.73% below the 52-week high.
- lowQuality score of 47 ranks 4th of 6 among listed sector peers; ROE ranks 5th of 6, with only HDFC Life Insurance (11.28%) lower; sector comparables Bajaj Finance (53), Axis Bank (50), and HDFC Bank (50) all score higher on composite quality.
Cross-section contradictions
- News sentiment is net positive (6 positive, 0 negative across 8 articles), driven by the RBI approval for stake acquisitions in AU Small Finance Bank and Federal Bank; yet the stock has declined 9.69% over 12 months and 11.76% over the past 3 months, and remains 7.1% below its 200-DMA — price action has not reflected the constructive near-term newsflow.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days