Kotak Bank shares gain 30% since April as earnings outlook brightens

Listen to this article in summarized format

Shares rise 3.86% to 457 on Thursday; stock has gained 10% in Oct and 30% this fiscal year.

The shares closed at ₹457 on the BSE, up 3.86% from the previous close, after touching an intraday high of ₹460 a share. Kotak underperformed between 2021 and 2024, delivering largely flat returns, before gaining 25% in 2025. The stock is up around 7% so far in 2026.

Axis Securities expects Kotak Mahindra Bank to deliver a return on assets of 2.1-2.2% and a return on equity of 12-14% over FY27-29. These metrics would rank second among large private sector banks, after ICICI Bank, the brokerage said. Siddharth Rajpurohit, lead analyst for banking and non-lending financials at Systematix Institutional Equities, attributed the bank's performance to a recovery in growth, easing credit costs and stable core margins.

"Growth is back for the bank. Growth in advances and deposits has picked up, while credit costs are coming down significantly," he said.