Kotak Mahindra Bank gains; Deutsche upgrades to buy

Tags: Companies
Shares of Kotak Mahindra Bank up as much as 3 per cent after Deutsche Bank upgrades the stock to "buy" from "hold" and increases the price target to Rs 1,080 from Rs 770.

High operating leverage in banking, broking and other sectors is driving strong earnings, while investments in its distribution network is resulting in sustained growth, Deutsche said in a note.

"The stock being a big beneficiary of capital market revival, with benefits accruing across business segments," it said.

Deutsche has increased earnings estimates for Kotak by 7 per cent for FY15 and 14 per cent for FY16 and expects consolidated earnings to grow at a 28 per cent CAGR over FY14-17.

Shares are up 2.7 per cent to Rs 924.45 at 12:41 p.m.

EDITORIAL OF THE DAY

  • India seems to pull out all stops when it comes to non-war measures against Pakistan

    After a decision to fully exercise its rights on the Indus water treaty, Narendra Modi government opened another front to hit at Pakistan’s economic

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

M S Swaminathan

Strategy for freedom from malnutrition

There is now a growing realisation that linking agriculture and ...

Zehra Naqvi

The fountain of eternal youth

The pursuit of eternal youth is a multi-billion dollar industry ...

Shona Adhikari

Where Bhupen Khakhar rubs shoulders with Georgia O'Keeffe

The next India Art Fair (IAF) is scheduled to take ...