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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kotak Mahindra Bank Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 10:00 pm

Market Cap 3,50,235 Cr.
Current Price 1,761
High / Low1,953/1,544
Stock P/E18.2
Book Value 654
Dividend Yield0.11 %
ROCE7.86 %
ROE15.1 %
Face Value 5.00
PEG Ratio1.27

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Kotak Mahindra Bank Ltd

Competitors of Kotak Mahindra Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fino Payments Bank Ltd 2,744 Cr. 330467/24929.4 77.30.00 %7.07 %14.4 % 10.0
Yes Bank Ltd 60,220 Cr. 19.232.8/19.033.6 14.30.00 %5.83 %3.18 % 2.00
Ujjivan Small Finance Bank Ltd 6,229 Cr. 32.263.0/32.05.35 28.74.65 %11.1 %26.7 % 10.0
South Indian Bank Ltd 5,868 Cr. 22.436.9/22.24.84 33.71.34 %6.19 %13.8 % 1.00
Karnataka Bank Ltd 7,556 Cr. 200287/1925.63 2882.75 %6.24 %13.7 % 10.0
Industry Average160,753.55 Cr406.4214.49197.151.01%7.10%13.93%5.95

All Competitor Stocks of Kotak Mahindra Bank Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue8,1347,9528,0438,2338,6268,8389,1649,99411,01111,98212,86913,71714,495
Interest3,1202,9332,8512,8802,9192,9043,0043,3753,8024,2304,8345,5365,985
Expenses8,0969,4297,2028,5326,8398,5554,8799,3139,34510,54810,30310,13612,484
Financing Profit-3,082-4,410-2,009-3,179-1,132-2,6201,281-2,694-2,136-2,796-2,269-1,955-3,975
Financing Margin %-38%-55%-25%-39%-13%-30%14%-27%-19%-23%-18%-14%-27%
Other Income6,5377,7734,5297,1105,5437,8382,4057,4417,3608,7857,8557,8439,588
Depreciation000001310000000
Profit before tax3,4553,3642,5193,9314,4115,0873,6864,7475,2245,9895,5865,8885,614
Tax %25%24%29%25%24%24%26%25%24%24%26%25%25%
Net Profit2,6022,5891,8062,9893,4033,8922,7553,6083,9954,5664,1504,4614,265
EPS in Rs13.1413.079.1115.0717.1519.6113.8818.1720.1222.9920.8822.4521.46
Gross NPA %2.25%3.22%3.58%3.16%2.75%2.37%2.27%2.09%1.91%1.76%1.75%1.69%1.68%
Net NPA %0.53%1.23%1.34%1.09%0.87%0.71%0.69%0.60%0.48%0.41%0.43%0.39%0.36%

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue8,47010,83811,98613,31920,40222,32425,13129,83133,47432,82033,74142,15153,062
Interest4,5426,0246,3126,96611,12311,45812,46715,18715,90112,96711,55414,41120,585
Expenses5,6516,6037,0539,71811,54114,83216,80519,75822,57829,81230,69933,48543,471
Financing Profit-1,723-1,789-1,379-3,366-2,263-3,965-4,141-5,114-5,005-9,958-8,512-5,746-10,994
Financing Margin %-20%-17%-12%-25%-11%-18%-16%-17%-15%-30%-25%-14%-21%
Other Income4,5435,1125,2828,1527,63111,66013,68216,14816,89223,58824,94125,99134,071
Depreciation1641792082373453623834584654614805990
Profit before tax2,6563,1443,6954,5505,0247,3329,15810,57611,42213,16815,94819,64623,077
Tax %30%30%32%33%32%32%33%33%25%25%25%25%
Net Profit1,8852,2382,5273,1053,5245,0196,2587,2048,5939,99012,08914,92517,442
EPS in Rs12.3714.6616.0019.7218.8626.8432.5437.7444.9250.4160.9175.1387.78
Dividend Payout %2%2%2%2%3%2%2%2%0%2%2%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)18.73%12.91%22.87%13.49%42.42%24.69%15.12%19.28%16.26%21.01%23.46%
Change in YoY Net Profit Growth (%)0.00%-5.81%9.96%-9.38%28.93%-17.74%-9.57%4.16%-3.02%4.75%2.45%

Kotak Mahindra Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:14%
3 Years:20%
TTM:25%
Compounded Profit Growth
10 Years:22%
5 Years:20%
3 Years:22%
TTM:12%
Stock Price CAGR
10 Years:12%
5 Years:2%
3 Years:-5%
1 Year:1%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:14%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital373385386917920953954957991992993994
Reserves14,89418,69921,77032,44737,57249,53556,82765,68083,34895,673110,821128,978
Borrowings85,56185,937104,258179,679205,230249,840291,763326,477327,110365,747418,807520,374
Other Liabilities15,00617,17622,04927,76132,46537,39245,62650,05967,40584,08689,809117,321
Total Liabilities115,835122,197148,464240,804276,188337,720395,171443,173478,854546,498620,430767,667
Fixed Assets6201,2641,3851,7611,7592,5432,6972,6752,5542,7233,0753,510
CWIP000000000000
Investments40,90738,79145,58970,27468,46290,977103,487111,197156,946164,529195,338246,446
Other Assets74,30882,142101,490168,769205,967244,201288,987329,301319,355379,245422,017517,711
Total Assets115,835122,197148,464240,804276,188337,720395,171443,173478,854546,498620,430767,667

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2,8789,0682,3025,02513,222-10,3921,82246,6194,8818,308-1,24215,685
Cash from Investing Activity +-9,035-1,130-4,467-2,353-5,289-5,475-3,323-13,068-11,172-10,903-10,381-8,919
Cash from Financing Activity +7,099-5,8142,4262,0246,05514,6798,365-735-10,0727,5431,88315,515
Net Cash Flow9422,1252604,69613,989-1,1886,86432,815-16,3634,949-9,74022,281

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow5.00-79.00-78.00-95.00-168.00-191.00-233.00-272.00-304.00-298.00-335.00-385.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %16%14%15%12%14%14%13%14%13%13%14%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters26.00%25.99%25.98%25.97%25.96%25.95%25.95%25.94%25.92%25.91%25.90%25.89%
FIIs42.58%42.06%40.86%40.55%40.92%40.90%39.42%41.54%40.97%39.74%37.59%33.16%
DIIs15.29%15.49%16.60%17.29%19.96%20.09%21.31%19.57%20.00%21.38%23.40%27.69%
Public16.13%16.46%16.56%16.20%13.16%13.05%13.30%12.92%13.11%12.98%13.11%13.26%
No. of Shareholders4,75,6715,30,6925,79,8215,64,7895,54,7795,43,7365,82,7335,60,8256,35,2996,34,6986,81,3017,82,680

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF27,294,7713.054747.655,167,8512024-11-23428.16%
SBI S&P BSE Sensex ETF18,705,7923.423253.225,167,8512024-11-23261.96%
Mirae Asset Large Cap Fund5,520,6842.79960.275,167,8512024-11-236.83%
UTI Flexi Cap Fund5,167,8513.69898.95,167,8512024-11-230%
Axis ELSS Tax Saver Fund4,834,6502.7840.945,167,8512024-11-23-6.45%
ICICI Prudential Balanced Advantage Fund4,472,1991.56777.895,167,8512024-11-23-13.46%
SBI Blue Chip Fund4,390,4701.98763.685,167,8512024-11-23-15.04%
SBI Flexi Cap Fund4,314,0004.27750.385,167,8512024-11-23-16.52%
HDFC Top 100 Fund - Regular Plan4,128,3352.79718.085,167,8512024-11-23-20.12%
Axis Bluechip Fund3,592,0002.03624.795,167,8512024-11-23-30.49%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value5.005.005.005.005.00
Basic EPS (Rs.)91.4574.9660.7650.5344.73
Diluted EPS (Rs.)91.4574.9460.7350.4944.68
Cash EPS (Rs.)90.4377.4262.5452.2947.00
Book Value[Excl.RevalReserv]/Share (Rs.)653.81562.86487.06425.56348.33
Book Value[Incl.RevalReserv]/Share (Rs.)653.81562.86487.06425.56348.33
Operating Revenue / Share (Rs.)282.89212.18170.01165.60174.98
Net Profit / Share (Rs.)90.4374.4060.1249.9744.99
Net Profit After MI / Share (Rs.)91.6275.1360.9150.4144.92
Net Profit Margin (%)31.9635.0635.3630.1725.71
Net Profit After MI And SOA Nargin (%)32.3835.4035.8330.4325.67
Operating Profit Margin (%)-35.67-26.59-39.65-42.93-24.74
Return On Assets (%)2.372.402.212.081.93
Return On Equity / Networth (%)14.0113.3412.5011.8412.89
Net Interest Margin (X)4.384.474.054.143.96
Cost To Income (%)56.9962.6164.7962.5359.43
Interest Income / Total Assets (%)7.326.796.176.857.55
Non-Interest Income / Total Assets (%)4.954.184.635.013.81
Operating Profit / Total Assets (%)-2.61-1.80-2.44-2.94-1.86
Operating Expenses / Total Assets (%)5.975.425.635.724.62
Interest Expenses / Total Assets (%)2.932.322.112.703.58
Enterprise Value (Rs.Cr.)839090.38743190.93697934.59662196.27564960.42
EV Per Net Sales (X)14.9217.6320.6920.1816.88
Price To Book Value (X)2.733.083.604.123.72
Price To Sales (X)6.318.1710.3210.597.41
Retention Ratios (%)100.0098.26100.00100.00100.00
Earnings Yield (X)0.050.040.030.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kotak Mahindra Bank Ltd as of November 24, 2024 is: 1,799.30

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Kotak Mahindra Bank Ltd is Undervalued by 2.17% compared to the current share price 1,761.00

Intrinsic Value of Kotak Mahindra Bank Ltd as of November 24, 2024 is: 2,057.29

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Kotak Mahindra Bank Ltd is Undervalued by 16.83% compared to the current share price 1,761.00

Last 5 Year EPS CAGR: 14.34%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kotak Mahindra Bank Ltd:
    1. Net Profit Margin: 31.96%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 7.1%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 13.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 18.2 (Industry average Stock P/E: 14.49)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Kotak Mahindra Bank Ltd. is a Public Limited Listed company incorporated on 21/11/1985 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65110MH1985PLC038137 and registration number is 038137. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 27038.82 Cr. and Equity Capital is Rs. 992.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private Sector27 BKC, C-27, G-Block, Mumbai Maharashtra 400051investor.grievances@kotak.com
http://www.kotak.com
Management
NamePosition Held
Mr. Prakash ApteNon Exe.Chairman&Ind.Director
Mr. Uday KotakManaging Director & CEO
Mr. Dipak GuptaJoint Managing Director
Mr. K V S ManianWhole Time Director
Mr. Amit DesaiNon Executive Director
Mr. C JayaramNon Executive Director
Mr. Uday ShankarIndependent Director
Mr. Ashok GulatiIndependent Director
Mr. Uday Chander KhannaIndependent Director
Ms. Ashu SuyashIndependent Director
Mr. C S RajanIndependent Director
Ms. Shanti EkambaramWhole Time Director

FAQ

What is the latest intrinsic value of Kotak Mahindra Bank Ltd?

The latest intrinsic value of Kotak Mahindra Bank Ltd as on 23 November 2024 is ₹1799.30, which is 2.17% higher than the current market price of ₹1,761.00.

What is the Market Cap of Kotak Mahindra Bank Ltd?

The Market Cap of Kotak Mahindra Bank Ltd is 3,50,235 Cr..

What is the current Stock Price of Kotak Mahindra Bank Ltd as on 23 November 2024?

The current stock price of Kotak Mahindra Bank Ltd as on 23 November 2024 is 1,761.

What is the High / Low of Kotak Mahindra Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kotak Mahindra Bank Ltd stocks is 1,953/1,544.

What is the Stock P/E of Kotak Mahindra Bank Ltd?

The Stock P/E of Kotak Mahindra Bank Ltd is 18.2.

What is the Book Value of Kotak Mahindra Bank Ltd?

The Book Value of Kotak Mahindra Bank Ltd is 654.

What is the Dividend Yield of Kotak Mahindra Bank Ltd?

The Dividend Yield of Kotak Mahindra Bank Ltd is 0.11 %.

What is the ROCE of Kotak Mahindra Bank Ltd?

The ROCE of Kotak Mahindra Bank Ltd is 7.86 %.

What is the ROE of Kotak Mahindra Bank Ltd?

The ROE of Kotak Mahindra Bank Ltd is 15.1 %.

What is the Face Value of Kotak Mahindra Bank Ltd?

The Face Value of Kotak Mahindra Bank Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kotak Mahindra Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE