Why I will keep Holding Kotak ( and HDFC/ICICI/Bajaj Finserv ) despite lacklustre Q1 FY25
Though equity market has derated private banks in last 3-4 years, as per my judgement there is no change in the strength of their franchise which according me lies in -
- Diversified financial conglomerates with stable low ROE annuity flow to balance high ROE but volatile capital market revenue streams
- Proven underwriting which allows to take large allocations with buying points spread across current cycle to benefit multiple future cycles
As my execution style gives least importance to near term earnings, I am happy to hold or even add my investments as long has franchise’s earning power is not lost
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