Chaitanya’s Portfolio

I can think of few reasons –

1. Private banks were trading at premium (P/B) and public sector banks were trading at discount and we can see now that PSBs have caught up and private banks P/B are fairly valued or undervalued. So, basically mean reversion has played out last few years.

2. Specifically, for Kotak, there was uncertainty around succession plan of Uday Kotak which kept price range bound.

Now that 2. is no longer an overhang and value funds like PPFAS adding Kotak their portfolio am hoping price will catch up with business value.