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

  • RBI must now educate investors on the benefits of debt market

    It is uncommon for the central bank to act on a policy decision within a week of submission of a specialist report.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Urs Schoettli

Japan needs more women in high office

Japan does not rank high in international tables, when it ...

Kuruvilla Pandikattu

Giving up faith is a complex act

We have met many people who have given up religion ...

Shona Adhikari

Belated recognition of women in America's modern art movement

This week we focus on a very important exhibition that ...