On this page ▾
Today's prices ask more of Kotak Mahindra Bank than of Axis Bank.
At current prices, buyers of Axis Bank are assuming about 14.5% return on equity against 14.3% in its own record; for Kotak Mahindra Bank it is 16.3% against 13.1%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: Axis Bank compounded at about 13% a year (FY2019–FY2026) and Kotak Mahindra Bank at about 13% (FY2019–FY2026).
- What to watch: closing the return gap at Axis Bank; return on equity versus capital at Kotak Mahindra Bank.
| Axis Bank | Kotak Mahindra Bank | |
|---|---|---|
| Price | ₹1,331 | ₹489 |
| Market cap | ₹4.14L Cr | ₹4.86L Cr |
| P/E | 13.8 | 22.6 |
| P/B | 1.94 | 2.68 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
From UTI Bank to a top-three private lender
Axis Bank started life in 1993 as UTI Bank, set up by the Unit Trust of India and other state-owned institutions, and took its current name in 2007. It lends to large corporates, small businesses and households, and runs one of the largest credit-card businesses in India.
From finance company to full financial group
Kotak Mahindra Bank grew out of a finance company founded by Uday Kotak in 1985 and became a bank in 2003. Alongside lending and deposits, the group runs one of India's larger broking and investment-banking businesses, a life insurer, an asset manager and a car-finance arm.
02The records side by side
On revenue the two have grown at much the same pace: Axis Bank compounded at about 13% a year (FY2019–FY2026) and Kotak Mahindra Bank at about 13% (FY2019–FY2026). By revenue, Axis Bank is about 1.5 times the size of Kotak Mahindra Bank. Axis Bank kept 16.3% of revenue as net profit in FY2026; Kotak Mahindra Bank kept 17.8% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Axis Bank · Kotak Mahindra Bank.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Closing the return gapAxis has earned less on its equity than the two largest private banks. How much of that gap closes is the heart of its valuation.
- Deposit franchiseGrowing low-cost deposits is the cheapest way to lift margins.
- Return on equity versus capitalKotak holds more capital per rupee of loans than most peers, which caps its return on equity unless growth picks up.
- The deposit franchiseLow-cost current and savings deposits are the cheapest funding a bank can have; keeping them is central to its margins.
05What could go wrong
- Corporate creditAxis has had a more volatile corporate-loan record than its closest peers.
- Unsecured lendingCards and personal loans are the first place a consumer slowdown shows up.
- Regulatory actionThe 2024 RBI restriction showed how quickly technology lapses can stall growth.
- Slower growth than peersCaution can mean losing share in a strong credit cycle.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Axis Bank or Kotak Mahindra Bank better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Axis Bank trades at 13.8 times earnings and 1.94 times book value, and Kotak Mahindra Bank at 22.6 times earnings and 2.68 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Axis Bank and Kotak Mahindra Bank?
Axis Bank started life in 1993 as UTI Bank, set up by the Unit Trust of India and other state-owned institutions, and took its current name in 2007. Kotak Mahindra Bank grew out of a finance company founded by Uday Kotak in 1985 and became a bank in 2003.
Are Axis Bank and Kotak Mahindra Bank valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for Axis Bank and Kotak Mahindra Bank?
Worked backwards from the share price, Axis Bank needs about 14.5% return on equity and Kotak Mahindra Bank about 16.3% return on equity, against 14.3% and 13.1% in their own records.