Kotak Mahindra Bank shares soar 5% to hit record high; is more steam left?

Shares of Kotak Mahindra Bank Ltd continued their upmove for the third consecutive session on Monday, rising 5.03 per cent to touch an all-time high of Rs 2,189.40. The stock eventually settled 4.51 per cent higher at Rs 2,178.35. At this price, it has moved up 21.83 per cent on a year-to-date (YTD) basis.

The counter recorded heavy trading volume along with decent price action as around 2.46 lakh shares changed hands on BSE. The figure was higher than the two-week average volume of 55,000 shares. Turnover on the counter came at Rs 53.15 crore, commanding a market capitalisation (m-cap) of Rs 4,33,104.56 crore.

A market expert said investors can start nibbling Kotak shares while another suggested that it may climb up to Rs 2,250 level in the near term.

"The stock has done nothing much over the last couple of years. Things are now probably settling down operationally at the bank. Therefore, one can start nibbling into Kotak," Chakri Lokapriya, Managing Partner at RedStrawBerry LLP, told Business Today.

"Investors should keep a trailing stop loss and look for target prices of Rs 2,200-2,250 levels," said Vaishali Parekh, Vice-President (Technical Research) at Prabhudas Lilladher.

Kotak traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 78.67. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 25.43 against a price-to-book (P/B) value of 3.91. Earnings per share (EPS) stood at 85.66 with a return on equity (RoE) of 15.39. According to Trendlyne data, Kotak has a one-year beta of 0.9, indicating low volatility.

As of December 2024, promotors held a 25.89 per cent stake in the private lender.