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Kotak Mahindra Bank Limited (KOTAKBANK) Fair Value & Analysis

Financial Services · IN · Market cap ₹3.8T

KM Kotak Mahindra Bank Limited KOTAKBANK · NSE
Price₹394.00
Fair Value₹252.09
Upside-36.0%
Quality50/100
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Healthy Growth
Highly profitable · 26.1% net margin
Moderate debt · generates free cash flow
0.17% dividend yield
Trails peers (4/15)
Wide moat 70/100
Evidence: High Range ₹189.07 – ₹315.12 Share as image

Fair value as of: Jul 14, 2026

From 26 valuation models · updated 24 days ago

Share price +3.1% over the past month.

A solid business, but screening 36% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹315.12). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹452.48 ₹309.36 Fair Value ₹252.09 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range ₹309.36 – ₹452.48 · fair‑value band ₹189.07 – ₹315.12 · the ₹394.00 price screens above the ₹252.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

Full chart & analysis →

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Analysis

Kotak Mahindra Bank Limited (KOTAKBANK) currently trades at ₹394.00, while our model-based Fair Value estimate is ₹252.09, implying the stock looks roughly 36.0% overvalued today. We read business quality at 50/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Kotak Mahindra Bank Limited generated revenue of ₹740B at a net margin of 26.1%. Revenue declined 11.0% year over year. It earns a return on equity of 11.4%. The balance sheet holds a net cash position of ₹67.0B. Fundamentals as of Jul 14, 2026

Our scenario range runs from ₹189.07 (bear case) to ₹315.12 (bull case); at ₹394.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -36%, KOTAKBANK screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹541.71 ₹1,136 ₹2,124 80
Residual Income ₹164.86 ₹191.51 ₹425.52 76
Rev-Margin DCF ₹301.12 ₹503.82 ₹785.78 74
All 26 models by family
DCF Models
FCF DCF ₹554.75 ₹1,057 ₹2,352 38
Owner Earnings ₹295.97 ₹613.03 ₹1,248 31
5Y Revenue Exit ₹301.12 ₹507.21 ₹789.03 39
5Y EBITDA Exit ₹343.60 ₹601.24 ₹933.33 41
5Y P/E Exit ₹360.53 ₹638.72 ₹970.46 38
10Y Revenue Exit ₹368.23 ₹604.90 ₹980.79 36
10Y EBITDA Exit ₹405.34 ₹678.37 ₹1,113 37
10Y P/E Exit ₹417.17 ₹707.66 ₹1,148 35
Earnings-Based
Graham-Dodd ₹131.86 ₹765.26 ₹1,065 54
Lynch FV ₹216.24 ₹308.91 ₹401.58 50
PEG = 1.0 ₹216.24 ₹308.91 ₹401.58 46
EPV ₹198.41 ₹232.63 ₹263.05 59
Dividend Discount
Gordon GGM ₹4.81 ₹10.50 ₹17.66 70
DDM Multi-Stage ₹4.81 ₹8.60 ₹10.94 61
Multiples
P/E Multiple ₹290.88 ₹387.83 ₹484.79 63
P/S Multiple ₹203.46 ₹271.28 ₹339.10 58
P/B Multiple ₹247.24 ₹329.66 ₹412.07 55
EV/EBIT ₹358.74 ₹476.82 ₹594.90 53
EV/EBITDA ₹270.45 ₹359.11 ₹447.76 54
EV/Revenue ₹194.39 ₹275.77 ₹357.16 43
Asset-Based
NCAV (Graham) ₹91.10 ₹122.07 ₹182.20 50
Growth DCF
Growth DCF ₹541.71 ₹1,136 ₹2,124 80
Rev-Margin DCF ₹301.12 ₹503.82 ₹785.78 74
Economic Profit
Residual Income ₹164.86 ₹191.51 ₹425.52 76
ROIC Compounder ₹211.15 ₹309.79 ₹399.48 72
Growth Earnings
Growth-Adj P/E ₹311.86 ₹445.51 ₹579.16 68

Widest divergence: DCF Models (₹613.03) versus Dividend Discount (₹8.60). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹740B
Revenue growth (YoY) -11.0%
Net margin 26.1%
Return on equity 11.4%
Free cash flow ₹364B FY2026
P/E ratio 19.6
More key figures
Operating margin 35.1%
EPS (TTM) ₹19.40
Dividend yield 0.2%
EPS growth (YoY) +9.8%
Net cash ₹67.0B FY2026

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 48 · Market factors (momentum, volatility) 54

Profitability 33
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 99
Earnings quality: real cash, not paper profit
Fin. Strength 34
Balance sheet, leverage, solvency risk
Investment 42
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 40
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Kotak Mahindra Bank Limited provides a range of banking and financial services to corporate and individual customers in India.

Full company description

Kotak Mahindra Bank Limited provides a range of banking and financial services to corporate and individual customers in India. It operates through Treasury, BMU, and Corporate Centre; Retail Banking; Corporate/Wholesale Banking; Vehicle Financing; Other Lending Activities; Broking; Advisory and Transactional Services; Asset Management; and Insurance segments. The company offers savings, current, retail institution, corporate, and salary accounts; NRE and NRO fixed deposits and foreign currency nonresident deposits; home, personal, business, payday, gold, education, two-wheeler, commercial vehicle and equipment, home improvement, car, business, and crop loans, as well as loans against securities and properties; smart EMI services; bill payment, fund transfer, FASTag, taxes, loan/utility payment, forex and remittance, and wearable payments; working capital solutions; and forex, credit, and debit card services. It also provides investment products; life, vehicle, property, health, car, and two-wheeler insurance; domestic and international trade; international export and import; bank guarantee, letter of credit, and export credit; cash management and trade and supply chain finance; and private banking services. In addition, the company offers demat accounts, mutual funds, and portfolio investment schemes; and wire transfer, click2remit, and remittance exchange house services. Kotak Mahindra Bank Limited was incorporated in 1985 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Kotak Mahindra Bank Limited reported revenue of ₹1.1T in FY2026 versus ₹575B in FY2022, a compound +17.0%/yr. Reported net income was ₹193B in FY2026, compounding +12.4%/yr from FY2022.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹1.1T
Latest YoY
+3.2%
Avg. growth/yr (3Y)
+17.7%
Avg. growth/yr (5Y)
+14.2%
Avg. growth/yr (21Y)
+21.6%
Revenue +17.0%/yr
FY22 ₹575B
FY23 ₹663B
FY24 ₹922B
FY25 ₹1.0T
FY26 ₹1.1T
Net income +12.4%/yr
FY22 ₹121B
FY23 ₹149B
FY24 ₹182B
FY25 ₹221B
FY26 ₹193B

KOTAKBANK screens 36% overvalued. Compare with PT Bank Central Asia Tbk →

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Cite: Fair Value Calculator (2026). "Kotak Mahindra Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/KOTAKBANK

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Banks - Regional · 1082 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Bottom 25%
Fair Value upside −36% · Bottom 25%
Return on equity (TTM) 11% · Above median
Return on assets 2% · Top 25%
Net margin (TTM) 26% · Below median
Operating margin (TTM) 35% · Below median
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.54× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 19.6× · Pricier than 75% of peers
P/B 2.08× · Pricier than 75% of peers
P/S (TTM) 5.10× · Pricier than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 13.8× · Pricier than median
PEG 0.94× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 39
FUTURE 0 · sector 44
PAST 46 · sector 41
HEALTH 73 · sector 85
DIVIDEND 3 · sector 49

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Kotak Mahindra Bank Limited (KOTAKBANK) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of ₹252.09 versus a price of ₹394.00, about −36% (overvalued).
What is the fair value of KOTAKBANK?
Our model-based fair value for Kotak Mahindra Bank Limited is ₹252.09 (as of Jul 14, 2026), built from audited fundamentals. The current price is ₹394.00.
What is the quality score of KOTAKBANK?
Kotak Mahindra Bank Limited has a Quality Score of 50/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Kotak Mahindra Bank Limited (KOTAKBANK)?
Kotak Mahindra Bank Limited reported trailing-twelve-month revenue of about ₹740B (latest available figure, as of Jul 14, 2026).
What is the net profit margin of KOTAKBANK?
The net profit margin of Kotak Mahindra Bank Limited is about 26.1%, meaning it keeps roughly 26.1% of revenue as net income. Based on the latest reported figures.
Does Kotak Mahindra Bank Limited pay a dividend?
Kotak Mahindra Bank Limited currently shows a dividend yield of about 0.17% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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