At 10:37 a.m., Kotak Mahindra shares rose at their daily limit of 10 percent, posting their highest gains in seven months, at Rs 1,557.30, while the benchmark Sensex index traded 0.14 percent. more to 40,202.52 cent points.
The stock is up nearly 25 percent over the last month, but is still down 7.6 percent so far this year.
On Monday, Kotak Mahindra Bank beat analyst estimates and reported a 26.27 percent year-on-year increase in stand-alone net profit at Rs 2,184.48 crore for the September quarter. Analysts surveyed by ET NOW had projected a profit figure of 1.6 billion rupees.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16.8 percent to Rs 3,913 crore from Rs 3,350 crore in the prior year quarter.
Broker Motilal Oswal raised its rating on the stock to “buy” from “neutral” after a 10-quarter gap, with a revised price target of Rs 1,650, citing the bank’s strong quarter, with lower provisions and higher revenue of treasury driving earnings.
“We increased our FY21 / FY22 earnings by 27% / 20%, led by steady revenue and a sharp decrease in provisioning expenses, and we introduced FY23 into our estimates,” the brokerage said in a note.
Prabhudas Lilladher maintained his “accumulation” rating on the stock and raised his target price to Rs 1,503 from Rs 1,389 earlier.
“With a strong liability franchise, high capital and consistent asset quality they maintain our constructive view, although the balance on loan growth has to improve from now on,” analysts at Prabhudas Lilladher said in a note.
YES Securities raised its rating on the stock to “Buy” from “Add” previously, and also raised the target price to Rs 1,670 from Rs 1,384 earlier.
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