Kotak Mahindra Bank: Kotak Bank slides on weak Q4 earnings, downgrades

Mumbai: Shares of Kotak Mahindra Bank fell 4.6% on Monday – their highest single-day decline in eleven months – after weaker-than-expected fourth quarter results led to some analyst downgrades.The stock, which ended at ₹2,085 on Monday, was the top loser on the benchmark Nifty. The index was up 0.5%.

“Kotak Mahindra Bank’s recent results have been weak, with moderation in growth, benign NII (Net Interest Income) traction and higher provision impacting earnings. This led to a drop in the stock,” said Vishal Narnolia, assistant vice president of research at ICICI Securities, which has a ‘Buy’ rating on the stock, with a target price of ₹2,400.

The private lender reported a 14% dip in its standalone profit after tax (PAT) at ₹3,552 crore, from the same quarter last year. Net Interest Income (NII) increased to ₹7,284 crore for January-March, from ₹6,909 crore last year, up 5% in the period.

BofA Securities, Nomura, CLSA, JM Financial, and Elara Capital downgraded the stock after the results. Goldman Sachs, Citi, Macquarie, and Jefferies retained their bullish stances.

The recent run-up in Kotak shares caps upside as the lender is now trading at premium valuations, said BofA Securities. The stock is up nearly 17% in 2025 so far as against the Nifty Bank index’s gains of about 8%.. “With near-term confidence around any meaningful growth outperformance waning, we see limited upside to multiples,” said the brokerage.

CLSA also cited the recent run-up in Kotak shares as a reason for its downgrade to ‘hold’ from ‘outperform’.