ScoreWhy is Kotak Mahindra Bank Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 2.10%
- Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 15.58% and Net profit at 16.31%
- The Bank has a high Capital Adequacy Ratio of 20.76% signifying high buffers against its risk based assets
2
High Institutional Holdings at 61.76%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
3
Market Beating Performance
- The stock has generated a return of 21.48% in the last 1 year, much higher than market (BSE500) returns of 2.06%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Kotak Mah. Bank should be less than 10%
- Overall Portfolio exposure to Private Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Private Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kotak Mah. Bank for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Kotak Mah. Bank
21.19%
0.95
22.69%
Sensex
4.84%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
15.58%
Net Profit Growth (5y)
16.31%
Advance to Deposit
86.38%
Capital Adequacy Ratio (Tier 1)
20.76%
Gross NPA (latest)
1.39%
Gross NPA (avg)
1.97%
Coverage Ratio (avg)
73.74%
Cost to Income (avg)
46.16%
Net Interest Margin (avg)
4.97%
Operating Profit to Assets (avg)
6.75%
ROA (avg)
2.10%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Price to Book Value
3.39
PEG Ratio
NA
Dividend Yield
0.12%
ROE (Latest)
10.70%
ROA (Latest)
1.89%
Net NPA to Book Value
1.19
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
DPS(Y)
Highest at Rs 2.50
GROSS NPA(Q)
Lowest at 1.39%
NII(Q)
Highest at Rs 7,310.74 cr
DPR(Y)
Highest at 3.02%
CREDIT DEPOSIT RATIO(HY)
Highest at 87.50%
PBDIT(Q)
Highest at Rs 2,679.09 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 19.63%
-7What is not working for the Company
PAT(Latest six months)
At Rs 6,535.01 cr has Grown at -31.88%
NON-OPERATING INCOME(Q)
is 59.92 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 16.36
Loading Valuation Snapshot...
Here's what is working for Kotak Mah. Bank
Gross NPA - Quarterly
Lowest at 1.39%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 7,310.74 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 2.50 and Grown
each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 2,679.09 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 19.63%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Credit Deposit Ratio - Half Yearly
Highest at 87.50%
in the last four periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Dividend Payout Ratio (DPR) - Annually
Highest at 3.02%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Kotak Mah. Bank
Profit After Tax (PAT) - Latest six months
At Rs 6,535.01 cr has Grown at -31.88%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 59.92 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 16.36
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
CAR - Quarterly
Lowest at 22.05%
in the last five quartersMOJO Watch
The Bank's capital base vs its risk assets is deteriorating.
CAR (%)
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