Goldman Sachs named Kotak Mahindra Bank as one of its top banking picks.
It initiated coverage on the stock with a ‘Buy’ call and a target price of Rs 509 apiece, implying 26% upside potential from the stock’s previous closing price of Rs 402.80 apiece on NSE.
Goldman Sachs noted that asset-quality challenges are largely behind, with continued share gains in focus segments driving Core PPoP growth, leading to strong re-rating potential.
It highlighted Kotak Mahindra Bank as an "underappreciated franchise" and identified it as one of its preferred picks alongside ICICI Bank, noting that it has protected NIMs much better than peers.
"With loan growth re-accelerating and continued cost-to-income improvement driven by operating leverage, we see the bank well positioned for a strong earnings’ recovery over the medium term," the report added.
Goldman Sachs named Kotak Mahindra Bank as one of its top banking picks. It initiated coverage on the stock with a ‘Buy’ call and a target price of Rs 509 apiece, implying 26% upside potential from the stock’s previous closing price of Rs 402.80 apiece on NSE. Goldman Sachs noted that asset-quality challenges are largely behind, with continued share gains in focus segments driving Core PPoP growth, leading to strong re-rating potential. It highlighted Kotak Mahindra Bank as an "underappreciated franchise" and identified it as one of its preferred picks alongside ICICI Bank, noting that it has protected NIMs much better than peers. "With loan growth re-accelerating and continued cost-to-income improvement driven by operating leverage, we see the bank well positioned for a strong earnings’ recovery over the medium term," the report added.
