EUR 120.00 For Business Accounts Only

MOSL: Morning India (23/July/19): 1. Kotak Mahindra Bank (In-line performance); 2. United Spirits; 3. L&T Finance Holdings; 4. TVS Motor Company; 5. GSK Pharma; 6. Indian Hotels FY19 – ART; 7. Coromandel Int.;

MOrning India (23/July/19): 1. Kotak Mahindra Bank (In-line performance); 2. United Spirits; 3. L&T Finance Holdings; 4. TVS Motor Company; 5. GSK Pharma; 6. Indian Hotels FY19 – ART; 7. Coromandel Int.; 8. Future Lifestyle

 

Today’s top research Idea

Kotak Mahindra Bank:  In-line performance; loan growth outlook softens

• KMB reported 1QFY20 standalone PAT of INR13.6b (+33% YoY, In-line). NII grew 23% YoY to INR31.7b (inline). This came on the back of healthy margins at 4.5% (+20bp YoY).
• Loan book grew 18% YoY to INR2.2t and reflected the slowdown being reported by few other banks. The moderation in loan growth was mainly driven by 4% QoQ decline in agri and slower growth in Corporate/BB, CV and Personal loan segments. CASA mix moderated to 50.7% (vs 52.5% in 4QFY19).
• KMB's operating performance remains strong, although business growth has shown moderation, reflecting weakness in the consumption-linked lending segments and cautious stance on corporate/BB and certain segments of agri. We expect the standalone bank to deliver 22%/23% loan book/PAT CAGR over FY19-21 and estimate KMB's FY21 consol. RoA/RoE at 2.2%/13.4%. Maintain Neutral with a TP of INR1,400 (3.8x FY21E ABV for the bank).

Piping hot news

Tatas want Voltas to be durable, plan to hive off its projects business

The Tata group is looking at the possibility of hiving off the projects business of Voltas and merging it with infrastructure company Tata Projects, senior officials close to the development said. Voltas chairman Noel Tata and group chairman N Chandrasekaran have held early discussions around the business synergies in this regard, they told ET on condition of anonymity.