banking

Kotak Mahindra Bank

KOTAKBANK · Nifty 50

₹404.5

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 20.8 (50%ile of 5Y range 16-24). Trading near median.

Sector Positionbanking sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score86/100 (STRONG). 2 positive flags, 1 concerns.

Historical Context147 similar technical setups. Average outcome: -6.9% decline. 0% positive.

Revenue TrendRevenue declining at -11.0% YoY. Revenue declining — -11.0% YoY

Bank HealthROA 1.48% · PB 2.2 · Asset growth 14.0%.

Fundamental

86/100

STRONG

Trust

90/100

Verification

Coverage

89/100

HIGH

Quick Take

Kotak Mahindra Bank scores 86/100 on fundamentals (strong). Kotak Mahindra Bank: PE below historical average. BROAD EXPANSION regime.

Fundamental Score: 86/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 8.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE8.2%=

24.5%Net Margin

0.1xTurnover

5.5xLeverage

ROE of 8.18% is modest leverage-driven and stable. Net margin of 24.5% × asset turnover of 0.06x × leverage of 5.5x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 24.5% means the company keeps ₹24.5 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.06x means the company generates ₹0.06 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 5.5x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

Net

24.5%

improving

Financial Health

Peer Comparison

Kotak Mahindra Bank is compared against 10 peers in the banking sector.

AUBANK AXISBANK BANDHANBNK BANKBARODA BANKINDIA CANBK FEDERALBNK HDFCBANK ICICIBANK IDFCFIRSTB

Bank Metrics

Return on Assets

1.48%

Benchmark: >1%

Efficiency Ratio

75.5%

Lower is better

Asset Growth

+14.0%

Year over year

PB Ratio

2.2x

Price to book

ROA of 1.48% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 2.21x — trading above book. Premium valuation — market pricing in high growth expectations.

Key Watchpoints

🟢

Breaks above ₹425 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹384 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 20.8

Valuation normalization

🟢

Banking sector entering leadership

Sector rotation signal

Detected Patterns

✅ Strong ROA: ROA of 1.48% — above 1% benchmark for banks

✅ Strong Loan Book Growth: Assets growing 14.0% — loan book expansion

Risk Flags

⚠️ 1 Warning✅ 2 Positive3 total flags

⚠️Working capital changes are 43% of operating cash flow

Cash Flow

Working capital is providing significant cash. Stretching payables — temporary boost.

✅Minimal unusual items — clean earnings

Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅PEG ratio: 0.9x — attractive growth-adjusted valuation

Valuation

Growth available at reasonable price. Favourable risk-reward.

➡️ 3 flags — 2 positive, 1 warning. Mixed profile.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

20.8HIGH

P/B Ratio

2.2HIGH

ROE

11.4%HIGH

Market Cap

₹40114092.8L CrHIGH

From 52W High

89% of high

Promoter Holding

28.4%MODERATE

Institutional

49.9%

Sector Peers

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