Kotak Mahindra Bank shares: What analysts advise after today's stock split

Shares of Kotak Mahindra Bank Ltd were trading 0.33 per cent lower at Rs 425 in Wednesday's session after the private lender's stock split came into effect. The bank had announced a 1:5 stock split, under which each equity share with a face value of Rs 5 was subdivided into five equity shares of face value Re 1 each. As a result, eligible shareholders received four additional shares for every one share held, taking their total holding to five shares.

This marks the second stock split undertaken by the bank. According to BSE data, the earlier split occurred in September 2010, when the face value of the shares was reduced to Rs 5 from Rs 10.

Stock splits are typically aimed at improving liquidity by making shares more affordable, although they do not alter the company's fundamentals.

Commenting on the development, Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, said investors may look at the counter with a longer-term lens. "After the stock split, one should consider buying Kotak Bank on dips with a long-term view. Investors can keep on adding the counter with a medium- to longer-term perspective. Those holding can continue with their positions," Bathini stated.

From a technical perspective, an analyst observed that support on Kotak Bank's counter could be seen around Rs 420-414.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that the stock has been consolidating near the 100-day exponential moving average (DEMA).

"The counter is expected to gain traction once it surpasses Rs 430 (20 DEMA) in a decisive manner. On the downside, support is placed in the Rs 420–414 zone, which is likely to cushion the stock in the near term," he said.

The private bank is scheduled to declare its third-quarter (Q3 FY26) results on January 24.