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Kotak Mahindra Bank share fall 4%

Kotak Mahindra Bank share price fall over 4% on Thursday after its joint managing director KVS Manian resigned with immediate effect. Kotak Mahindra Bank shares dropped as much as 4.38% to ₹1,552.55 apiece on the BSE.

KVS Manian was recently promoted to the role of Joint MD of Kotak Mahindra Bank and has resigned after 29 years of service.

 

If we search on google about the Top 5 Banks in India you will get the following data he following data

Bank	Market Cap (Lakh Crore)	Current PE	Median PE (For 10 years)
HDFC Bank.	11.55	18	25.4
ICICI Bank.	8.08	18.1	19.2
State Bank Of India (SBI)	7.37	10.8	12.2
Axis Bank.	3.59	13.4	20.1
Kotak Mahindra Bank	3.13	17.6	35.9

As per the market Cap, Kotak Mahindra Bank is at 5th position in India.

Share Price

For 1 year

• Over the period of 1 year share price fall 18.40%

For 5 years

• Over the period of 5 years, company has given only 11.13 % returns
• CAGR for 5 years is 1.92%, which is lower than the FD interest rate of 6%

For 20 years

• In last 20 years, company has given 18480.78% returns which in turned became multibagger
• It means if you had invested 1 lakh in 2003, then it would have turned into 1.84Crore in May 2024.
• CAGR for last 20 years is 30.16 %

Key Ratios

Market Cap	₹ 3,13,265 Cr.
Current Price	₹  1,576
High/Low	₹  2,064 / 1,552
Stock PE	18
Sector PE	12.3
ROCE	6.86 %
ROE	14.3 %
PEG Ratio	0.92
Debt To Equity	3.75

Shareholding Pattern

Change in Shareholding Pattern

	Jun-21	Mar-24	Change
Promoters +	26.00%	25.90%	-0.10%
FIIs +	42.77%	37.59%	-5.18%
DIIs +	14.62%	23.40%	8.78%
Public +	16.61%	13.11%	-3.50%

1. Promoters

• June 2021: 26.00%
• March 2024: 25.90%
• Change: -0.10%

The shareholding by promoters remained relatively stable with a slight decrease of 0.10 percentage points. This suggests that the promoters’ ownership has not changed significantly.

2. FIIs (Foreign Institutional Investors)

• June 2021: 42.77%
• March 2024: 37.59%
• Change: -5.18%

FIIs’ shareholding has decreased by 5.18 percentage points. This could indicate reduced interest from foreign investors, possibly due to changing market conditions, currency fluctuations, or other external factors.

3. DIIs (Domestic Institutional Investors)

• June 2021: 14.62%
• March 2024: 23.40%
• Change: 8.78%

DIIs’ shareholding has significantly increased by 8.78 percentage points. This suggests that domestic institutional investors have shown greater confidence in the company during this period.

4. Public

• June 2021: 16.61%
• March 2024: 13.11%
• Change: -3.50%

The shareholding by the public has decreased by 3.50 percentage points. This could imply that retail investors or smaller stakeholders have reduced their ownership in the company.

Summary

• The shareholding pattern shows notable shifts from June 2021 to March 2024.
• While the promoters’ ownership remained fairly constant, the shareholding by FIIs decreased significantly.
• DIIs’ increased ownership indicates growing confidence among domestic institutions.
• The public shareholding decreased, which might suggest a shift toward more institutional ownership or a consolidation among larger stakeholders

Financial Trend

1) Percentage Change in Sales from 2019 to 2023:

• Sales in 2019: 29,831
• Sales in 2023: 42,151
• The percentage change in sales from March 2019 to March 2023 is approximately 41.32%.

2) Percentage Change in Net Profit from 2019 to 2023:

• Net Profit in 2019: 7,204
• Net Profit in 2023: 14,925
• The percentage change in net profit from March 2019 to March 2023 is approximately 107.23%.

This analysis shows that, over the given period, net profit has increased at a significantly higher rate compared to sales, suggesting a strong improvement in profitability. This could be due to better operational efficiency, cost management, or a focus on higher-margin products or services.

Valuation

• Company is currently trading at 10 year lowest valuation
• Median PE is trading at 35.9 while current PE is 18.
• Company is undervalued as is it trading below the median PE.

What Should Investors Do ?

• Company is sitting at all time high Revenue & all time high Net Profit
• Net Profit has more than doubled in last 5 years but stock price for last 5 years is only 11.13 %
• Company is undervalued at this point of time
• It has the potential to double the share price within 2 years.
• It is just a time bound correction because of the sentiments in the market.
• Fundamental of the company seems to be really strong one can definitely consider investing in this stock.

Check out this- Bullish on Banking & Finance Sector Stocks

Disclaimer

• This article is a complete guide about Kotak Mahindra Bank Ltd.
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
• If you have any further queries, please comment below. We will be happy to answer all your questions.
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