BSE:500247

Stock Analysis Report

Kotak Mahindra Bank

Executive Summary

Kotak Mahindra Bank Limited provides a range of banking services to corporate and individual customers in India.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Kotak Mahindra Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500247 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

500247

-0.3%

IN Banks

-0.07%

IN Market


1 Year Return

35.2%

500247

8.1%

IN Banks

9.5%

IN Market

Return vs Industry: 500247 exceeded the Indian Banks industry which returned 8.1% over the past year.

Return vs Market: 500247 exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

500247IndustryMarket
7 Day-0.8%-0.3%-0.07%
30 Day2.1%-2.5%-1.3%
90 Day4.6%-3.9%1.9%
1 Year35.3%35.2%8.5%8.1%11.5%9.5%
3 Year110.1%109.7%12.8%11.6%23.6%16.7%
5 Year139.6%138.9%11.5%7.9%35.5%22.9%

Price Volatility Vs. Market

How volatile is Kotak Mahindra Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kotak Mahindra Bank undervalued compared to its fair value and its price relative to the market?

36.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500247 (₹1678.35) is trading above our estimate of fair value (₹362.34)

Significantly Below Fair Value: 500247 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500247 is poor value based on its PE Ratio (36.7x) compared to the Banks industry average (18.1x).

PE vs Market: 500247 is poor value based on its PE Ratio (36.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500247 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 500247 is overvalued based on its PB Ratio (5.1x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is Kotak Mahindra Bank forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500247's forecast earnings growth (20.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 500247's earnings (20.4% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500247's revenue (13.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500247's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500247's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Kotak Mahindra Bank performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500247 has high quality earnings.

Growing Profit Margin: 500247's current net profit margins (25.3%) are lower than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: 500247's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: 500247's earnings growth over the past year (25.5%) exceeds its 5-year average (22.5% per year).

Earnings vs Industry: 500247 earnings growth over the past year (25.5%) underperformed the Banks industry 25.5%.


Return on Equity

High ROE: 500247's Return on Equity (13.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kotak Mahindra Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 500247 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500247's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: 500247's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 500247 has a sufficient allowance for bad loans.

Low Risk Liabilities: 500247's liabilities are made up of primarily low risk sources of funding.

Loan Level: 500247 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 500247's loans are broadly funded by customer deposits.

Level of Bad Loans: 500247 has a high level of bad loans (2.2%)


Next Steps

Dividend

What is Kotak Mahindra Bank's current dividend yield, its reliability and sustainability?

0.047%

Current Dividend Yield


Dividend Yield vs Market

company0.05%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Years0.07%

Current dividend yield vs market & industry

Notable Dividend: 500247's dividend (0.047%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500247's dividend (0.047%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: 500247 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 500247 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 500247 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500247's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average board tenure


CEO

Uday Kotak (60yo)

₹35,282,400

Compensation

Mr. Uday Suresh Kotak, B.Com, MMS, serves as Chief Executive Officer of Kotak Mahindra Bank Limited since May 1, 2018 and also serves as its Member of Executive Board and Managing Director. He had served a ...


CEO Compensation Analysis

Compensation vs Market: Uday's total compensation ($USD491.17K) is below average for companies of similar size in the Indian market ($USD1.10M).

Compensation vs Earnings: Uday's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Uday Kotak
MD, CEO0yrs₹35.28m29.86% 963.0b
Dipak Gupta
Joint MD20.3yrs₹35.04m0.059% 1.9b
Krishnan Subramanian
President of Corporate0.3yrsno data0.028% 910.2m
Gaurang Shah
Whole Time Director0.3yrsno data0.044% 1.4b
Chengalath Jayaram
Non-Executive Director20.3yrs₹2.18m0.054% 1.8b
Farida Khambata
Independent Non-Executive Director5.4yrs₹1.54m0.0036% 116.4m
Prakash Apte
Non-Executive Part-Time Chairman1.6yrs₹2.94mno data
Uday Khanna
Independent Non-Executive Director3.4yrs₹2.30mno data
Uday Shankar
Independent Non-Executive Director0.9yrsno data0.000020% 645.1k
S. Dev
Independent Non-Executive Director6.9yrs₹2.84mno data

3.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 500247's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500247 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kotak Mahindra Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kotak Mahindra Bank Limited
  • Ticker: 500247
  • Exchange: BSE
  • Founded: 1985
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹3.225t
  • Shares outstanding: 1.91b
  • Website: https://www.kotak.com

Number of Employees


Location

  • Kotak Mahindra Bank Limited
  • Bandra Kurla Complex
  • 27BKC, C 27
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500247BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2000
KOTAKBANKNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2000
715026BSE (Mumbai Stock Exchange)8.1% NON CUM PREF INR5ININRAug 2018

Biography

Kotak Mahindra Bank Limited provides a range of banking services to corporate and individual customers in India. The company’s Treasury, BMU and Corporate Centre segment engages in dealing in debt, equity, money market, forex market, derivatives, and investments; and the primary dealership of government securities and balance sheet management unit responsible for asset liability management. Its Retail Banking segment offers commercial vehicle finance, personal loans, home loans, agriculture finance, and other loans/services. This segment also provides savings, current, and term deposit accounts; branch banking network and services, including distribution of financial products; and credit cards. The company’s Corporate/Wholesale Banking segment provides wholesale borrowings and lendings, and other related services to the corporate sector. Its Vehicle Financing segment offers retail vehicle finance and wholesale trade finance to auto dealers. The company’s Other Lending Activities segment provides financing against securities, securitization, and other loans/services. Its Broking segment offers market brokerage and forex broking services; and distributes financial products. The company’s Advisory and Transactional Services segment provides financial advisory and transactional services, such as mergers and acquisition advice, and equity/debt issue management services. Its Asset Management segment engages in the management of funds and investments on behalf of clients and funds. The company’s Insurance segment offers life insurance and general insurance products. As of September 30, 2019, the company had a network of 1,512 branches and 2,429 ATMs; and branches in GIFT City and DIFC, Dubai. Kotak Mahindra Bank Limited was founded in 1985 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:40
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.