EUR 120.00 For Business Accounts Only

MOrning India (2/May/19): 1. Kotak Mahindra Bank (Steady performance); 2. Bharti Airtel; 3. EcoScope; 4. Britannia Industries; 5. Ambuja Cement; 6. Container Corp; 7. TVS Motor Co; 8. Exide Inds; 9. Indian Hote

MOrning India (2/May/19): 1. Kotak Mahindra Bank (Steady performance); 2. Bharti Airtel; 3. EcoScope; 4. Britannia Industries; 5. Ambuja Cement; 6. Container Corp; 7. TVS Motor Co; 8. Exide Inds; 9. Indian Hotels; 10. Castrol India

 

Today’s top research idea

Kotak Mahindra Bank: Steady performance across businesses, margins improve sequentially

• KMB reported PAT of INR14.1b (+25% YoY, In-line) on account of healthy loan growth, improved margins and lower provisions. NII grew 18% YoY to INR30.5b, as margin expanded 15bp QoQ to 4.48%. Loan book grew 21% YoY, led by strong growth in retail loans across segments and corporate banking (+19% YoY), while deposits grew 17% YoY (CASA deposits up 21.3% YoY). CASA mix improved to 52.5% (+180bps QoQ).
• The bank has maintained stable asset quality in a challenging environment and is on track to build a strong formidable liability franchise. We expect KMB to maintain continued traction in loan growth (FY19-21 CAGR of 22%) and gain market share across segments. We, thus, project KMB's FY21 consol. RoA/RoE at 2.1%/13.4%. Maintain Neutral with a revised target price of INR1,450 (3.8x FY21E ABV for the lending business).

Piping hot news

GST collection scales record high of ₹1.13 lakh crore in April

• Revenue collections from the Goods and Services Tax hit a record ₹1.13 lakh crore in April 2019, according to official data released on Wednesday. The government had collected ₹1.06 lakh crore in March. “The total gross GST revenue collected in the month of April 2019 is ₹1,13,865 crore of which CGST is ₹21,163 crore, SGST is ₹28,801 crore, IGST is ₹54,733 crore and cess is ₹ 9,168 crore,” the government said.