Kotak Mahindra Bank Share Price Target: After New CEO Appointment, Should You Buy, Sell Or Hold?

Kotak Mahindra Bank share price target: Kotak Mahindra Bank recently announced the appointment of Ashik Vaswani- formerly with Citi Group and Barclays- as its CEO. Since the announcement, shares of Kotak Mahindra Bank have taken hits. On Monday, with the Reserve Bank of India (RBI) approving Ashok Vaswani's appointment as the CEO of the lender, the stock dipped 2.65 per cent to Rs 1,722.50 during the day on the Bombay Stock Exchange (BSE). The slump came despite the bank reporting a rise in September quarter profit. The stock later ended at Rs 1,739.95 apiece, down 1.67 per cent.

Kotak Mahindra Bank's consolidated net profit for the quarter ended September 30 rose 23.56 per cent to Rs 4,422.86 crore, aided by growth in core income. On a standalone basis, the lender's net profit for the July-September quarter grew to Rs 3,191 crore compared to Rs 2,581 crore in the same period last year.

Kotak Mahindra Bank Target Price

Research and investment firm Emkay Global has maintained a "hold" rating for the share. The company has set the target price for Kotak Mahindra Bank at Rs 1,955.

In its report, Emkay Global said that it expects the bank's Return on Assets/Return on Equity to normalise to 2.1 per cent/13 per cent from the highs of 2.4 per cent/14.5 per cent in FY23 due to margins/LLP normalisation. "Factoring-in management transition-related risks, we lower our target price multiple to 2.6x Sep-25E ABV from 2.8x Jun-25E ABV for the core bank and value the subsidiary at Rs 480 per share, leading to a target price at Rs 1,955 per share (earlier Rs 2,000). Thus, we retain HOLD on the stock," the report said.

Meanwhile, CLSA has cut the target price for Kotak Mahindra Bank from Rs 2,200 to Rs 2,050. The brokerage house continues to maintain an "Outperform" rating for the share. In its report, the company noted that the appointment of external candidate came as a surprise to the market, which was expecting an internal candidate to be the CEO. However, this also ends the year-long speculation about the leadership.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times NOW Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)