Fundamental investing
STOCK: Kotak Mahindra Bank Ltd
CMP: 1769
Target: 2000
Investment Horizon: 6 to 12 months
ROCE: 6.8% ROE: 14.2%
Pros: - IT is the third largest bank in the country and it has good customer base, as India grows so does banking sector, being a premium bank it has a good investment opportunity
Cons: -New NBFC rise has caused some disruption in lending filed as they have low investment and capital requirement, they pose some competition and risk to large banks. Also, due to change in top management there may be little growth in stock performance for short term.
My Opinion: Good fundamentally strong stock to hold in your portfolio, will give good returns in future.