Kotak Mahindra Bank Limited

Financial Services — Banks - Regional · NSE

₹447.40−₹0.55 (−0.12%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Kotak Mahindra Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

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

IndustryBanks - Regional

SectorFinancial Services

Employees1,12,000

Annual revenue₹75,789 Cr

How does it make money?

Turns over ₹75,789 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit. Each of its 1,12,000 employees supports ₹67.7 lakh of revenue a year, the signature of a people-led business.

Net margin25.4%

Revenue / employee₹67.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., AXIS BANK LIMITED, STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

AXIS BANK LIMITEDP/E 14.5x · ROE 13.4%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROE10.6%

Peer median ROE15.2%

What is the outlook?

31 analysts covering the stock expect revenue to grow about 107.2% and earnings to grow about 14.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+107.2%

Est. earnings growth+14.6%

Analysts31

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +46% while net margin moved -12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+46%

Margin effect-12%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 21.9x is within a normal band
• P/E is close to its own historical median of 21.6x

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.9x

3Y Median

21.6x

40 monthly readings · mean 21.0x · range 15.9x–25.5x

Sector Median

15.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 21.6x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 44% above the peer median of 15.2x.

vs. its own history

Fair

21.6x median over 40 months · +1%

vs. sector peers

Expensive

15.2x median of 4 peers · +44%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.9x

P/B

2.46x

EV/EBITDA

—

PEG

2.46

Dividend Yield

0.15%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 44% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.5% CAGR
Latest reported year was 21.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 9%✓ 10.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 21.6x✓ 21.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹4.45 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.46x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹20.4

Profitable

Profitable on a per-share basis

ROE

10.6%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

21.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.15%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹40,669 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹447.4

P/E (Forward)

19.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

34.8%

Good

Healthy core-business profitability

Net Margin

28.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

424.2 / 414.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

79.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹51,857 Cr	₹69,670 Cr	₹75,984 Cr	₹75,789 Cr	+13.5%
PAT (Net Profit)	₹14,925 Cr	₹18,213 Cr	₹22,126 Cr	₹19,288 Cr	+8.9%
EPS	₹14.99	₹18.29	₹22.26	₹19.39	+9.0%
ROE	13.3%	14.0%	14.0%	10.6%	—
Total Debt	₹52,334 Cr	₹75,106 Cr	₹86,751 Cr	₹95,394 Cr	+22.2%
Free Cash Flow	-₹2,229 Cr	₹14,558 Cr	₹15,703 Cr	₹40,669 Cr	—

🟢 Revenue has grown at 13.5% a year over 3 years.

🟢 PAT (Net Profit) has grown at 8.9% a year over 3 years.

🟢 EPS has grown at 9.0% a year over 3 years.

🔴 ROE has fallen from 13.3% to 10.6% over 3 years (-2.6 pts).

🔴 Total Debt has grown at 22.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2,229 Cr to ₹40,669 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10.03 L Cr

Total Liabilities

₹8.22 L Cr

Total Debt

₹95,394 Cr

Cash & Equivalents

₹1.03 L Cr

Operating Cash Flow

₹41,727 Cr

Capex

-₹1,058 Cr

Shareholding (proxy)

Institutional Holding

47.2%

Insider Holding

28.4%

Corporate Actions

Next Earnings

24 Oct 2026

Dividend Rate

₹0.65

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

32 Buy · 4 Hold · 1 Sell

Target Price (Mean)

₹476

+6.4% vs CMP

Target Range

₹380 – ₹550

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
AXIS BANK LIMITED	14.5x	13.4%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

6 general

Kotak Mahindra Bank shareholders approve all AGM resolutions

scanx.trade, 18 Oct

Kotak Mahindra Bank among 5 stocks that hit 52-week highs & rallied up to 15% in a month

The Economic Times, 16 Oct

Kotak Mahindra Bank Share Price near 52-week high, analysis

Univest, 14 Oct

Five Stocks To Buy Today: Kotak Mahindra Bank, Indian Hotels, BSE, And More | October 16, 2026

NDTV Profit, 16 Oct

SBI, Axis, Kotak Mahindra rise up to 3%: Read why banking stocks are gaining today

India Infoline, 09 Oct

Stocks to Watch for October 6: Axis Bank, Kotak Mahindra Bank, Vedanta, Trent and more

CNBC TV18, 05 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong18/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13.4/20

🟢ProfitabilityStrong10.9/15

🟡ValuationFair9.3/15

🟢RiskLow7.4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 10% a year13.5% CAGR
✓Return on equity stays above 9%10.6%
✓Valuation vs its own median of 21.6x21.9x today