Kotak Mahindra Bank Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹3,53,806 crore, PE ratio of 19.0, debt-to-equity ratio of 4.00, and return on equity of 15.1%. These figures reflect the company’s financial health and current market valuation.
Content:
- Kotak Mahindra Bank Ltd Overview
- Kotak Mahindra Bank Financial Results
- Kotak Mahindra Bank Financial Analysis
- Kotak Mahindra Bank Company Metrics
- Kotak Mahindra Bank Stock Performance
- Kotak Mahindra Bank Peer Comparison
- Kotak Mahindra Bank Shareholding Pattern
- Kotak Mahindra Bank History
- How To Invest In Kotak Mahindra Bank Ltd Share?
- Kotak Mahindra Bank Limited Fundamental Analysis – FAQs
Kotak Mahindra Bank Ltd Overview
Kotak Mahindra Bank Ltd is a leading Indian private sector bank known for its strong financial performance, diverse portfolio, and innovative banking solutions. It offers a range of services including retail, corporate, and investment banking to a broad customer base.
The company has a market capitalisation of ₹3,53,806 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 7.62% below its 52-week high and 15.3% above its 52-week low.
Kotak Mahindra Bank Financial Results
Kotak Mahindra Bank’s financial results for FY24 show a significant increase in total income to ₹94,274 crore, up from ₹68,142 crore in FY23. The bank achieved a net profit of ₹18,213 crore with an EPS of ₹91.45. The NIM stands at 5.47%.
Revenue Trend: Kotak Mahindra Bank has demonstrated robust revenue growth over the years, with FY24 total income rising to ₹94,274 crore, up from ₹59,051 crore in FY22, reflecting a strong upward trend in financial performance.
Equity and Liabilities: The bank’s total expenses increased to ₹68,438 crore in FY24 from ₹42,331 crore in FY22, indicating higher operational costs, while provisions and contingencies rose, impacting the overall financial management.
Profitability: Kotak Mahindra Bank’s pre-provisioning operating profit (PPOP) margin remained strong at 27.41% in FY24, reflecting effective cost management and operational efficiency despite rising expenses and provisions.
Earnings Per Share (EPS): The bank’s EPS improved significantly to ₹91.45 in FY24 from ₹60.76 in FY22, highlighting robust profitability and a favourable return to shareholders.
Return on Net Worth (RoNW): The return on net worth, while not provided directly, is inferred to be healthy given the increased net profit and EPS, demonstrating effective utilization of equity capital.
Financial Position: Kotak Mahindra Bank’s solid financial position is underscored by its net interest income of ₹33,669 crore and a net interest margin (NIM) of 5.47% in FY24, indicating a strong balance sheet and efficient asset management.
Kotak Mahindra Bank Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 94,274 | 68,142 | 59,051 |
| Total Expenses | 68,438 | 48,056 | 42,331 |
| Pre-Provisioning Operating Profit | 25,836 | 20,086 | 16,720 |
| PPOP Margin (%) | 27.41 | 29.48 | 28.31 |
| Provisions and Contingencies | 1,972 | 439.68 | 771.64 |
| Profit Before Tax | 23,863 | 19,646 | 15,948 |
| Tax % | 24.67 | 24.77 | 25.18 |
| Net Profit | 18,213 | 14,925 | 12,089 |
| EPS | 91.45 | 74.96 | 60.76 |
| Net Interest Income | 33,669 | 27,740 | 22,187 |
| NIM (%) | 5.47 | 5.42 | 5.05 |
| Dividend Payout % | 2.19 | 2 | 1.81 |
*All values in ₹ Crores
Kotak Mahindra Bank Company Metrics
Kotak Mahindra Bank’s current market cap is ₹3,53,806 Cr with a stock price of ₹1,780. The bank has a P/E ratio of 19.0, a book value of ₹654, and a dividend yield of 0.11%. Its ROE is 15.1%, and its net profit stands at ₹21,511 Cr.
Market Cap: Kotak Mahindra Bank’s market capitalization is ₹3,53,806 Cr, reflecting its total market value based on the current share price and outstanding shares.
Book Value: The bank’s book value per share is ₹654. This represents the net asset value per share, providing insight into the intrinsic value of the bank’s equity relative to its market price.
Face Value: Kotak Mahindra Bank’s face value is ₹5.00 per share. This is the nominal value of the stock set by the company, serving as a base for accounting purposes and not reflecting the market value.
Turnover: The asset turnover ratio is 0.08, indicating the bank’s efficiency in using its assets to generate revenue. A lower ratio suggests lower revenue generation relative to the bank’s asset base.
PE Ratio: The price-to-earnings (P/E) ratio is 19.0, which shows the price investors are willing to pay for each unit of earnings.
Debt: Kotak Mahindra Bank has a significant debt of ₹5,20,374 Cr, leading to a debt-to-equity ratio of 4.00. This high leverage indicates substantial reliance on debt financing compared to equity.
ROE: The return on equity (ROE) is 15.1%, reflecting the bank’s profitability and efficiency in generating profit from shareholders’ equity. A higher ROE signifies effective management and strong financial performance.
EBITDA Margin: The EBITDA margin is 16.6%, indicating the bank’s operational efficiency. This margin represents the percentage of earnings before interest, taxes, depreciation, and amortization relative to revenue.
Dividend Yield: The dividend yield is 0.11%, showing the return on investment from dividends relative to the stock price.
Kotak Mahindra Bank Stock Performance
The table shows the return on investment (ROI) over different periods: 4% for 5 years, 0% for 3 years, and -1% for 1 year. This indicates fluctuating performance with a recent decline but moderate gains over the longer term.
| Period | Return on Investment (%) |
| 5 Years | 4% |
| 3 Years | 0% |
| 1 Year | -1% |
Example:
If an investor, A, invested ₹1,00,000 five years ago, the 4% return would increase the investment to ₹1,04,000.
Over the past three years, with a 0% return, the value stayed at ₹1,00,000.
However, in the last year, the -1% return reduced the value to ₹99,000.
Kotak Mahindra Bank Peer Comparison
Kotak Mahindra Bank, with a market cap of ₹347,394.7 Crores, faces mixed performance. It has a PEG ratio of 0.91 and a 1-year return of -2.58%, indicating some growth challenges compared to peers like ICICI Bank and HDFC Bank.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % | ROCE % | Div Yld % |
| 1 | HDFC Bank | 1607.8 | 1224435.08 | 0.77 | 10.1 | -0.19 | 7.67 | 1.19 |
| 2 | ICICI Bank | 1161.65 | 817534.91 | 0.3 | 2.71 | 21.06 | 7.6 | 0.85 |
| 3 | Axis Bank | 1153.1 | 356369.28 | 0.34 | 1.21 | 22.68 | 7.06 | 0.09 |
| 4 | Kotak Mah. Bank | 1747.9 | 347394.7 | 0.91 | 4.54 | -2.58 | 7.86 | 0.11 |
| 5 | IndusInd Bank | 1338.1 | 104233.58 | 0.53 | -5.02 | -3.66 | 7.93 | 1.22 |
| 6 | IDBI Bank | 92.89 | 99761.75 | 0.84 | 11.38 | 46.28 | 6.23 | 1.56 |
| 7 | Yes Bank | 23.99 | 75143.09 | -9.36 | 5.92 | 41.53 | 5.83 | 0 |
Kotak Mahindra Bank Shareholding Pattern
The shareholding pattern of Kotak Mahindra Bank reflects a stable distribution among major stakeholders over the years. Promoters hold a consistent 25.89% to 25.9% stake. Foreign Institutional Investors (FII) have slightly decreased to 33.16%, while Domestic Institutional Investors (DII) have increased their stake to 27.73%. Retail and other investors’ shares have remained relatively steady at 13.22%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 25.89 | 25.9 | 25.91 | 25.93 |
| FII | 33.16 | 37.59 | 39.74 | 40.97 |
| DII | 27.73 | 23.43 | 21.41 | 20.03 |
| Retail & others | 13.22 | 13.08 | 12.95 | 13.08 |
*All values in %
Kotak Mahindra Bank History
Kotak Mahindra Bank, founded on November 21, 1985, as Kotak Capital Management Finance Ltd., was promoted by Uday S. Kotak and partners. The company began operations in corporate finance, bill discounting, and money market operations.
In 1990, Kotak Mahindra expanded by issuing equity shares and debentures, gaining SEBI approval for a Mutual Fund. By 1992, it had issued convertible debentures and raised funds through commercial paper, reflecting its growing market presence.
By 2003, the company rebranded as Kotak Mahindra Bank and received RBI approval to start banking operations. It continued to expand, including mergers, new product launches, and technological advancements in the subsequent years.
How To Invest In Kotak Mahindra Bank Ltd Share?
Investing in Kotak Mahindra Bank Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Kotak Mahindra Bank Ltd shares and place your buy order.
Kotak Mahindra Bank Limited Fundamental Analysis – FAQs
Kotak Mahindra Bank Ltd’s fundamental analysis shows a market capitalization of ₹3,53,806 crore, a P/E ratio of 19.0, a debt-to-equity ratio of 4.00, and a return on equity of 15.1%, indicating its financial health and market valuation.
The market cap of Kotak Mahindra Bank Ltd as of August 12, 2024, is approximately ₹3,53,806 crore. This value reflects the company’s strong market position in the Indian cement industry.
Kotak Mahindra Bank Limited is a major private sector bank in India, offering a wide range of financial services including banking, loans, wealth management, and insurance. It caters to both retail and corporate clients, with a significant presence across India.
Kotak Mahindra Bank was founded by Uday Kotak, who remains a key figure in its ownership. Although the bank is publicly traded, Uday Kotak and the Kotak family retain significant ownership and influence over the bank’s operations and strategy.
The main shareholders of Kotak Mahindra Bank include the Kotak family, through their holding companies, institutional investors such as mutual funds and insurance companies, and individual shareholders. Key entities like Kotak Mahindra Life Insurance Company also hold significant stakes.
Kotak Mahindra Bank operates in the banking and financial services industry. It provides a range of financial products and services, including retail and corporate banking, wealth management, and insurance, catering to both individual and institutional clients.
To invest in Kotak Mahindra Bank Ltd shares, open a brokerage account with a registered stockbroker, deposit funds, and place a buy order for Kotak Mahindra Bank shares through the stock exchange. Ensure you research and monitor the company’s performance before investing.
To determine if Kotak Mahindra Bank is overvalued or undervalued, analyze its current valuation metrics like P/E ratio, and P/B ratio, and compare them with industry peers and historical averages. Additionally, consider growth prospects and financial health for a comprehensive view.
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Disclaimer: The above article is written for educational purposes, and the companies data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
