Case study

KOTAKBANK

KOTAK MAHINDRA BANK LTD

Mixed signals1y model +3.8%

Each stock's 10,000-path forecast, rendered as light.

0Score

KOTAK MAHINDRA BANK LTD (KOTAKBANK) Stock Analysis & Case Study

Is KOTAKBANK a good buy? The data-driven verdict.

KOTAK MAHINDRA BANK LTD (KOTAKBANK) trades at ₹402,on the numbers it mixed signals, a Downstox Snapshot Score of 52/100.

On the numbers, KOTAK MAHINDRA BANK LTD (KOTAKBANK) mixed signals, a Downstox Snapshot Score of 52/100, weighing fairly valued at 21.0× earnings, ROE of 11.2%, a 57% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on KOTAKBANK

Kotak has long traded like a best-in-class private bank, and a P/E near 21 still carries that quality premium. The puzzle is that the underlying returns no longer obviously earn it: an ROE around 11 percent is merely decent for a large lender, and a Piotroski score of 4 of 9 hints the recent financial trend is soft rather than strengthening. The real question is whether this is a temporary reset or a durably lower-return franchise being priced on past reputation. Watch whether profitability and loan-book momentum reaccelerate to justify the valuation.

Downstox editorial view, written by our own analysts. Information, not investment advice.

KOTAKBANK fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹4.00L Cr
Current price
₹402
P/E ratio
21.0×
P/B ratio
2.21×
Book value
₹182
Dividend yield
0.12%
ROCE
6.9%
ROE
11.2%
Piotroski F-Score
4/9

Is KOTAKBANK overvalued? KOTAKBANK P/E vs its Banking

KOTAKBANK's P/E of 21.0× sits above the Banking peer median of 17.9×, so on earnings it screens richer than peers, while its 0.12% dividend yield is below the peer median of 0.16%.

KOTAKBANK P/E
21.0×
Peer median P/E
17.9×
KOTAKBANK div yield
0.12%
Peer median yield
0.16%

KOTAKBANK share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of KOTAKBANK history (6%/yr drift, 22%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
KOTAKBANK 2027₹316₹418₹556+4%
KOTAKBANK 2028₹291₹436₹648+8%
KOTAKBANK 2029₹278₹457₹739+14%
KOTAKBANK 2030₹268₹476₹835+18%
KOTAKBANK 2031₹259₹497₹931+24%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability KOTAKBANK goes up, or doubles?

57%
Higher in 1 year
Modelled chance the price is above today in 12 months
66%
Higher in 5 years
Modelled chance the price is above today in 5 years
16%
Doubles in 5 years
Modelled chance of reaching ₹804 within 5 years

The bull case for KOTAKBANK

  • A 21.0× P/E sits in the fair-value band, neither cheap nor stretched.
  • Relatively low volatility (22%/yr), a steadier ride than the typical mid/small-cap.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹739.

The bear case & risks

  • Return on equity is a soft 11.2%, capital efficiency trails higher-quality peers.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹278.

KOTAKBANK volatility & expected range, how bumpy is the ride?

Over the last 2.0 years KOTAKBANK compounded at 6%/year with annualized volatility of 22%. That volatility implies a 1-year 80% range of ₹316₹556, the honest backbone behind any single price target.

KOTAKBANK price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
3.8%
80% range₹316–₹556
P(price ↑)57%
P(price 2×)0%
3-Year Forecast
2029
₹0
Median (P50)
13.7%
80% range₹278–₹739
P(price ↑)63%
P(price 2×)7%
5-Year Forecast
2031
₹0
Median (P50)
23.6%
80% range₹259–₹931
P(price ↑)66%
P(price 2×)16%

KOTAKBANK price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
KOTAKBANK simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds KOTAKBANK hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the KOTAKBANK price target & forecast page.

KOTAKBANK Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. KOTAKBANK scores 4/9,mixed financial health.

KOTAKBANK MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy KOTAKBANK with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox26.5%3.8×
Zerodha22.6%4.4×
DhanCHEAPEST22.0%4.5×

Compare every broker on the KOTAKBANK MTF page.

KOTAKBANK vs peers,Banking comparison

StockP/EDiv yieldMarket cap
KOTAKBANK (this stock)21.0×0.12%₹4.00L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr
INDUSINDBK80.6×0.16%₹71,728 Cr
YESBANK22.3×0.00%₹78,371 Cr
AXISBANK16.0×0.07%₹4.23L Cr

About KOTAK MAHINDRA BANK LTD: sector, index & market-cap context

KOTAK MAHINDRA BANK LTD (KOTAKBANK) is a large-cap NSE-listed company in the Banking sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹4.00L Cr. See more Nifty 50 stocks.

How the KOTAKBANK Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of KOTAK MAHINDRA BANK LTD's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

KOTAKBANK analysis, FAQs

Is KOTAK MAHINDRA BANK LTD (KOTAKBANK) a good buy?

On the numbers, KOTAK MAHINDRA BANK LTD (KOTAKBANK) mixed signals, a Downstox Snapshot Score of 52/100, weighing fairly valued at 21.0× earnings, ROE of 11.2%, a 57% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is KOTAKBANK overvalued or undervalued?

KOTAKBANK trades at 21.0× earnings versus a peer median of 17.9×, so it screens richer than its Banking peers.

What is the KOTAKBANK share price target for 2031?

KOTAKBANK's probability-weighted 2031 median target is ₹497, with an 80% range of ₹259₹931 (10,000-path Monte-Carlo).

What is the probability KOTAKBANK doubles in 5 years?

The modelled probability of KOTAKBANK reaching ₹804 (2×) within 5 years is 16%.

What is the bull case for KOTAKBANK?

A 21.0× P/E sits in the fair-value band, neither cheap nor stretched. Relatively low volatility (22%/yr), a steadier ride than the typical mid/small-cap.

What are the risks in KOTAKBANK?

Return on equity is a soft 11.2%, capital efficiency trails higher-quality peers.

More on KOTAKBANK