Kotak Mahindra Bank
Market Cap
₹3.2t
Last Updated
2020/02/24 12:40 UTC
Data Sources
Company Financials +
Executive Summary
Kotak Mahindra Bank Limited provides a range of banking services to corporate and individual customers in India.
Rewards
Risk Analysis
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
| 500247 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | -0.3% | -0.07% |
| 30 Day | 2.1% | -2.5% | -1.3% |
| 90 Day | 4.6% | -3.9% | 1.9% |
| 1 Year | 35.3%35.2% | 8.5%8.1% | 11.5%9.5% |
| 3 Year | 110.1%109.7% | 12.8%11.6% | 23.6%16.7% |
| 5 Year | 139.6%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
1 year ago | Simply Wall St
Is It Time To Sell Kotak Mahindra Bank Limited (BOM:500247) Based Off Its PE Ratio?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO | 0yrs | ₹35.28m | 29.86% ₹963.0b | |
| Joint MD | 20.3yrs | ₹35.04m | 0.059% ₹1.9b | |
| President of Corporate | 0.3yrs | no data | 0.028% ₹910.2m | |
| Whole Time Director | 0.3yrs | no data | 0.044% ₹1.4b | |
| Non-Executive Director | 20.3yrs | ₹2.18m | 0.054% ₹1.8b | |
| Independent Non-Executive Director | 5.4yrs | ₹1.54m | 0.0036% ₹116.4m | |
| Non-Executive Part-Time Chairman | 1.6yrs | ₹2.94m | no data | |
| Independent Non-Executive Director | 3.4yrs | ₹2.30m | no data | |
| Independent Non-Executive Director | 0.9yrs | no data | 0.000020% ₹645.1k | |
| Independent Non-Executive Director | 6.9yrs | ₹2.84m | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500247 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Mar 2000 |
| KOTAKBANK | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Mar 2000 |
| 715026 | BSE (Mumbai Stock Exchange) | 8.1% NON CUM PREF INR5 | IN | INR | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 12:40 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.