Morgan Stanley says Kotak Mahindra Bank is a buy
Morgan Stanley just gave Kotak Mahindra Bank an "Overweight" rating, setting a target price of ₹2,600 per share.
That's about 31% higher than where the stock closed on Monday (₹1,991.60).
The bank's mix of business loans, car finance, and personal lending puts it in a good spot as India's economy picks up.
The bank's profits could grow by 18-20% annually
Morgan Stanley thinks Kotak can grow its profits and earnings per share by 18-20% starting from fiscal year 2027.
Even though net profit dipped to ₹3,282 crore in the June quarter compared to last year, interest income actually rose 6.1% from the previous quarter—showing some positive momentum.
Shares were still around ₹1,995 on Tuesday after the call
Kotak's loan book is growing but so are its bad loans (NPAs), which hit ₹6,638 crore with a gross NPA ratio of 1.48%.
This means the bank had to set aside more money for potential losses.
Still, shares hovered around ₹1,995 on Tuesday after Morgan Stanley's call—suggesting people are watching both the risks and growth potential closely.