Shares in Kotak Mahindra Bank fell 2.7 percent to Rs 564.20, dropping for a second day, as analysts warned that the valuations look too expensive.
Deutsche Bank lowered Kotak Mahindra to “sell” from “hold”, after it cut its target price to Rs 540 from Rs 545 , calling the stock “expensive” and saying the financial firm is “very conservative”, which could lead to slower growth and pressure on margins.
Kotak Mahindra Bank MD, Uday Kotak. Reuters
Morgan Stanley said the Kotak’s share price will fall in absolute terms over the next 15 days as valuations are “unsustainable.”
The US investment bank maintained its “underweight” call on the stock.
Kotak Mahindra said on Thursday net profit rose 11.9 percent to Rs 282 crore in the April-June quarter from a year ago.
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