Motilal Oswal has downgraded Kotak Mahindra Bank to ‘neutral’ with a target price of Rs 1,800.
The broking firm feels the risk-reward in Kotak Bank is unfavourable now after the sharp rise in stock price.
The stock is trading over 4 times FY22 estimated adjusted book values which is at 17 percent premium to the 5-year average.
The stock had moved up in anticipation of the MSCI inclusion. In the context of growth outlook and return ratios, the risk-reward is unfavourable, Motilal Oswal feels.Watch this video for more.