Should buy or sell kotak mahindra bank stock

 Business model of Kotak Mahindra bank:

Everyone in the Private Banking Sector at Kotak Mahindra Bank India Uday Kotak is the Managing Director & CEO of Kotak Mahindra Bank. Uday Kotak has a very good image at the corporate level. Dipak Gupta is the Joint Managing Director of Kotak Mahindra Bank. Kotak Mahindra Bank offers Retail Banking, Corporate Banking, and Commercial Banking Services. 

Apart from this, Kotak Mahindra Bank is also doing a lot of business in India with financial services like investment banking, stock broking, car finance, asset management and life insurance. From Kotak Mahindra Finance Ltd in 1985 till today, Kotak Mahindra Bank has created a very good image among the people and has won the hearts of NRI's as well in India. In 1996, Kotak Mahindra had entered the vehicle finance segment many years back by buying a stake in a company like Ford Credit Finance. Kotak Mahindra Bank's transformation from Non-Banking Finance Company to Commercial Banking in 2003 has been a huge achievement. Best Domestic Bank at the Asia Money Best Bank Awards 2019 has also been won by Kotak Bank.

If we talk about Treasury, Investments and Balance Sheet Management unit business segment, Kotak Bank is also doing business from debt, equity, forex market, derivatives and investments, money market, and dealership of government securities. Everyone knows Kotak Mahindra Bank in retail banking. In retail banking, Kotak Mahindra Bank deals with financial services like lending, branch banking and credit cards. Corporate and Wholesale Banking is financed by all private banks in India, but non-performing assets remain a headache for all banks. Kotak Mahindra Bank has expanded the business of wholesale borrowings and lending into Wholesale Banking. Kotak Mahindra Bank is also known in India for offering best financial services in two wheeler & four wheeler segment like Vehicle Financing which includes retail vehicle finance and wholesale trade finance. In February 2013, Kotak Mahindra Bank had acquired the business loans portfolio of the Indian arm of Barclays Plc and has garnered a lot of business in this segment as well.

Recent developments in the Kotak Mahindra bank stock:

Reserve bank of India has given approval to LIC to increase its stake in the kotak Mahindra bank. Previous LIC was holding nearly 4.96% but after RBI approval it will be increased to 9.99%. We will let you know that before this new approval it was allowed to acquire any private bank with more than 5% only. on Monday,  Kotak Mahindra bank  informed the SEBI  that Bank has received a Official communication from the officials of LIC which informing us that the reserve bank of  has given its approval to LIC for  increasing its stake in the kotak Mahindra  bank to 9.99 per cent of the bank's paid-up equity share capital. As per the Official documents central bank approval will last long for only 1 year it means LIC has to increase & hold stake in kotak Mahindra bank as soon as possible it will reflect into the price of kotak Mahindra bank stock. on Monday, Shares of Kotak Mahindra Bank closed at Rs 2,011 up 2.39 % from the previous week close.

Must note that proposal to increase the stake in the Bank is subject to RBI's prior approval for acquisition of shares or voting rights in Pvt Sector banks. Also,  the market regulator SEBI also looks into the provisions of the Foreign Exchange Management Act.

 Let us discuss Stock analysis of Kotak Mahindra bank stock.

What are the short term targets of Kotak Mahindra bank?

As per the technical charts, Kotak Mahindra bank is in the bullish trend. Currently Kotak Mahindra bank stock is trading at 2033rs (10:02am, 30-Nov-2021). Since news came into the market that LIC got permission for increasing stake into the Kotak Mahindra bank stock has given nearly 100rs per share movement. As Indian stock market is higly overvalued and we are expecting profit booking into the Indian stock market, therefore we will give buy levels & sell levels for the Kotak Mahindra bank stock so that our website viewers could make their best strategy in kotak Mahindra bank stock.

Should you Sell Kotak Mahindra bank stock:

In Any case if sell off will come into the Indian stock market and it will start reflect into the Kotak Mahindra bank stock then follow these price levels.

1) If kotak Mahindra bank gives closing below 1998.50rs then it can go down to 1982.50rs, 1972.80rs, 1962.50rs, 1950.80rs, 1938.20rs, and 1930rs keep strict stoploss of 2013.80rs on closing basis

2) In any case If kotak Mahindra bank  stock break 1922.80rs price level and gives closing below it then we will see more sell off in this stock and kotak bank stock we reach to 1912rs, 1902rs, 1895.80rs, 1885rs, 1874.80rs, 1867.50rs, 1855.20rs, 1845rs, 1836.50rs to 1810rs price level in this case trend of kotak  bank stock will be changed and not new buying positions will be recommended.

Note that please follow the strict stop losses and if you want to short sell kotak bank stock then strictly follow the price levels which discusses above.

Should you Buy Kotak Mahindra bank:

As we have already discussed that Indian stock market is overvalued and we may see profit booking in coming days so if Anyone wants to buy kotak Mahindra bank stock then Follow these price levels strictly with stoploss.

1) If Kotak Mahindra bank stock gives close above 2040rs level then stock price of kotak Mahindra bank may head toward 2060rs, 2080rs, 2098rs, 2110rs, 2120rs, 2128rs+ keep strict stop loss if 2006.80rs on closing basis.

2) If in the coming day above price targets achieve in kotak Mahindra bank stock then Follow next strategy. If Kotak bank stock gives close above 2140.80rs then next price targets in kotak Mahindra bank will be 2158rs, 2169.80rs, 2178.80rs, 2179.80rs, 2198.50rs, 2210rs, 2218.90rs, 2230.80rs, 2242.50rs, 2252.80rs & new 52 week high & in this case price targets for kotak bank stock will be opened.

Note that buy kotak Mahindra bank stock as per given price levels and follow the strict stoplosses because Indian stock market is trading at higher levels & correction may come anytime.

 Financial analysis of Kotak Mahindra bank:

  Revenues growth

Since FY17 to Fy 21, Kotak bank has recorded good revenues growth. If we will do data analysis of check the financial results of Kotak bank then in Fy17 bank had reported nearly  22300cr revenues , FY 18 revenues was 25130.80cr, FY19 29,934cr & In FY20, FY21 revenues  were more than 66,290cr.

Net profit growth of Kotak Mahindra bank

Bank had reports net profit of nearly 4950rscr in FY17, more than 6100cr in FY18 & In next 3yers from FY19 to FY21, Bank had reported total net profit of more than 2500cr. It is good growth in the private sector bank.

Gross NPA’s of Kotak Mahindra bank:

Percentage of Gross NPA’s of kotak bank is almost 2.8% from FY17 to FY21 in between NPA’s had come down to 2% in FY18 to FY20

Net NPA’s of Kotak Mahindra bank:

Percentage of net NPA’s of Kotak Mahindra bank is nearly 1% from FY17 to FY21. It means bank is able to maintain its NPA’s.

Kotak Mahindra bank reports EPS of 50rs trading with P/E of 39.50 against Sector P/E of 30. Face value is 5rs with book value of 425 & market cap of 394,270cr

What are the long term targets of Kotak Mahindra bank stock?

If we will carefully read above all discussed factors then there is nothing to worry for long term investors of kotak Mahindra bank investors because this private bank is into the hand of strong management. Outlook of the kotak Mahindra bank is also good. We are maintaining 2200rs long term price targets of Kotak Mahindra bank stock. But it may come in coming 1 to 2 years. It is advisable to buy Kotak mahindra bank stock at lower levels then these price targets will be applicable in long run. Otherwise follow the above mentioned technical price levels and set your trades accordingly.

One Positive News for Kotak bank may come soon.

When you should expect IPO of LIC?

IPO of Life Insurance Corporation of India is expected to come in Indian market in this financial year. As per statement of Union Finance Ministry in the media Indian government owned company LIC IPO has got the green signal of the central government. Indian government has also appointed 10 big merchant bankers for management of LIC IPO.