Purpose: £ 2,500
CMP: £ 2,153
Kotak Mahindra Bank is well positioned to deliver superior performance. We would have to see a marginal increase in loan growth led by a rebound in the uncovered segment in FY26E, although the delay in the uncovered retail segment was sufficiently compensated by Uptick in the secure book and non-retail segment in 9mfy25.
NIMS was confronted with downward pressure as a result of rising financing costs and a lower share of high-speed assets in 9m-FY25 because of embargo, but as embargo is canceled, the way we believe that the growth-backing in PL/CC and acquisition of the high-ramp of the high-ramps will probably help with the high-rings of the high-rings of the High-Rentente-book with When managing the banks in the partial offset of interest rate in FY26E.
We repeat the purchase at KMB with a revised SOTP-based PT of £ 2,500, given the growth/profitability it is expected to be better than colleagues in FY26. The bank is reasonably confident to support ROA at around 2 percent in the almost medium term. We also expect that the contribution of its subsidiaries will increase to consolidated income, because the scale and market share will gradually win in the future.
The most important risks: slower growth in the loan, higher credit costs, lower margins and slower growth of shop obligations.
