Kotak Mahindra and ITC get 'Buy' calls, check target, and stop loss

Kotak Mahindra Bank and ITC have gained strong 'Buy' calls from JM Financial's Akshay Bhagwat. He noted that Kotak Mahindra Bank made a good intraday positive move on Friday in the private banking space. He suggested a 'buy' for Kotak Bank with two upside targets of Rs 435 and Rs 440, with a stop loss of 407.

In terms of stock performance, Kotak Bank has delivered a mixed performance across shorter time frames. Over the past week, the stock gained 3.52 per cent, outperforming the NIFTY 50’s 1.47 per cent rise. However, its one‑month return stood at a negative 1.61 per cent, broadly in line with the benchmark’s 1.85 per cent decline. On a year‑to‑date basis, Kotak Mahindra Bank is down 4.78 per cent, falling more sharply than the NIFTY 50, which has slipped 1.73 per cent in the same period.

Looking at longer horizons, Kotak Mahindra Bank shows moderate outperformance in the near‑term past but lags over multi‑year periods. The stock delivered a 10.22 per cent return over the last year, slightly ahead of the NIFTY 50’s 8.86 per cent, and gained 20.88 per cent over three years, though this is well below the benchmark’s 44.63 per cent rise. Over the five years, Kotak Mahindra Bank returned 6.51 per cent, sharply underperforming the NIFTY 50’s substantial 72.16 per cent gain.

Bhagwat's second stock pick was ITC. He noted that ITC has made a good recovery from the 300 level, being highly oversold on technical parameters. "We are positively targeting that you will soon see levels of Rs 335 and Rs 340 in ITC. Your stop loss for this buying position will be Rs 314," he said.

ITC’s stock performance has been significantly weaker than the broader market across most time frames. Over the past week, the stock gained 1.30 per cent, slightly trailing the NIFTY 50’s 1.47 per cent rise. However, the one‑month return shows a sharper correction, with ITC falling 4.70 per cent compared with the benchmark’s 1.85 per cent decline. The underperformance is more pronounced on a year‑to‑date basis, where ITC has dropped 10.31 per cent, far below the NIFTY’s 1.73 per cent dip.

The gap widens over longer periods. ITC has fallen 26.01 per cent over the last one year, even as the NIFTY 50 gained 8.86 per cent. The three‑year return also remains negative at 14.88 per cent, while the benchmark surged 44.63 per cent in the same period. Only the five‑year window shows a positive trajectory for the stock, with ITC delivering 39.26 per cent, though this still lags the NIFTY 50’s 72.16 per centreturn.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)