Kotak Mahindra Bank Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Kotak Mahindra Bank has not reported any payouts.
• No need to calculate the sustainability of Kotak Mahindra Bank's dividends in 3 years as they are not expected to pay a notable one for India.
• Unable to evaluate Kotak Mahindra Bank's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Kotak Mahindra Bank's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Kotak Mahindra Bank's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Kotak Mahindra Bank's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Performance (ROE) is expected to be above the current IN Banks industry average.
• Kotak Mahindra Bank's revenue growth is expected to exceed the India market average.

Cons

• Kotak Mahindra Bank's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
• Kotak Mahindra Bank's earnings growth is positive but not above the India market average.
• Kotak Mahindra Bank's earnings are expected to decrease over the next year.
• Kotak Mahindra Bank's net income is expected to increase but not above the 50% threshold in 2 years time.
• Kotak Mahindra Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• A decline in Kotak Mahindra Bank's performance (ROE) is expected over the next 3 years.
• Kotak Mahindra Bank's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Kotak Mahindra Bank's revenue is expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Kotak Mahindra Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
• Kotak Mahindra Bank's liabilities are made up of primarily low risk sources of funding.
• Kotak Mahindra Bank has an acceptable proportion of non-loan assets held.
• Loans at Kotak Mahindra Bank are broadly funded by customer deposits.

Cons

• Kotak Mahindra Bank has a high level of bad loans (greater than 2%).

management

Pros

• The tenure for the Kotak Mahindra Bank board of directors is about average.
• Uday's remuneration is lower than average for companies of similar size in India.
• Uday's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Kotak Mahindra Bank individual insiders have sold more shares than they have bought in the past 3 months.

past

Pros

• Kotak Mahindra Bank has delivered over 20% year on year earnings growth in the past 5 years.
• Kotak Mahindra Bank used its assets more efficiently than the IN Banks industry average last year based on Return on Assets.

Cons

• Kotak Mahindra Bank's 1-year earnings growth is less than its 5-year average (19.1% vs 21.9%)
• Kotak Mahindra Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Kotak Mahindra Bank's earnings growth has not exceeded the IN Banks industry average in the past year (19.1% vs 21%).

value

Pros

• KOTAKBANK outperformed the Banks industry which returned -37.5% over the past year.
• KOTAKBANK outperformed the Market in India which returned -14.5% over the past year.
• NSEI:KOTAKBANK is up 8.4% along with the Banks industry (7.6%) over the past month.
• NSEI:KOTAKBANK is up 8.4% along with the India market (8%) over the past month.

Cons

• Kotak Mahindra Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Kotak Mahindra Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Kotak Mahindra Bank is overvalued based on assets compared to the IN Banks industry average.
• Kotak Mahindra Bank is poor value based on expected growth next year.
• Kotak Mahindra Bank is overvalued based on earnings compared to the IN Banks industry average.
• Kotak Mahindra Bank is overvalued based on earnings compared to the India market.