Anyone has a good view on the valuation of the subsiaderies?
Given the PAT runrate of the kotak investment, kotak amc and kotak securities has exploded all which deserve valuation twice standalone bank. Also kotak life has superior margin and return profile vis a vis industry.
my back of envelope calculations show subsidaires after 20% holding discount should be valued at 700-770 Rs/share. So core standalone bank is trading a 2x book value cheapest of all the banks.
I think it would be critical for kotak to get back to 20% growth runrate or also to look at good acquisitions as current leverage is low and the CAR is too high for it to do 16-18% ROE, even after being best on NIMs and ROA.
Kotak given its 100% control over subsidiaries is probably quite antifragile as most of its subsidiaries dont carry balance sheet risk and would aid core bank to drive higher growth without diluting equity
| Subscribe To Our Free Newsletter |
