Kotak Mahindra Bank share price declined more than 3% in morning trade on the BSE on Monday, 29 June, trading among the top losers in the Sensex index. The banking stock dropped 3.14% to an intraday low of ₹ 396.15. Around 11:40 am, the stock was 2.53% down at ₹398.65, while the equity benchmark Sensex was 0.15% down at 76,984.
Kotak Mahindra Bank shares witnessed some profit booking as its chief executive officer (CEO), Ashok Vaswani, said he will step down at the end of his current term on 31 December 2026. In an exchange filing, Kotak Mahindra Bank on Saturday, 27 June, said Vaswani does not wish to seek reappointment when his term ends on 31 December.
“The board has respected his decision and has initiated the process for the appointment of a new managing director and chief executive. The process will be completed within applicable regulatory timelines,” Kotak Mahindra Bank said.
Meanwhile, brokerage firm ICICI Securities has maintained a buy call on the stock with a target price of ₹480, as it believes any major correction in the stock could provide a good entry point, as a major impact on the quality of franchise and growth prospects is unlikely, while valuations appear comfortable.
“Fundamentally, Kotak Mahindra Bank seems to be in a sweet spot in terms of business growth and asset quality,” said ICICI Securities.
As per the brokerage firm, the candidature and stability of the MD and CEO and top management have been crucial to determine overall growth and business strategy and execution, and therefore, a key ingredient for valuations.
“The current valuations, at nearly 2 SD below the mean, partly reflect frequent management exits at Kotak. While the MD and CEO succession uncertainty may remain an overhang in the near term, we believe any major correction could provide a good entry point for medium-term investors to own a quality franchise,” said ICICI Securities.
Kotak Mahindra Bank share price trend
The stock has underperformed the banking index on the BSE this year so far. Year-to-date, Kotak Mahindra Bank shares have dropped 10% compared to a 2% decline in the BSE Bankex. Equity benchmark Sensex has also declined 10% this year so far.
However, on a monthly scale, the stock is up about 4% so far in June, looking set to extend gains for the third consecutive month.
Kotak Mahindra Bank shares hit a 52-week low of ₹345.40 on 2 April this year after hitting a 52-week high of ₹452.98 on 20 October last year.
Read all market-related news here
Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
About The Author
