Market experts at KR Choksey have given a reduce rating for private banking major Kotak Mahindra Bank with a target price of Rs 545. KR Choksey research report has maintained a positive outlook for the bank for long term strong fundamentals. However, it highlights limited upside from current levels.

Kotak Mahindra Bank touched 52-week high of Rs 612 on 10 July, 2012. The stock is currently trading with a P/E multiple of 37.5 and is looking expensive compared to peer stocks. On 19, July, the bank reports Q1 profit after tax at Rs 282 crore with a total income of Rs 2056 crore.

The recently announced quarterly results by Kotak Mahindra Bank were below analyst expectations. The bank could not manage to keep the growth momentum as it faces competition from other private sector banks.

Market expert Sudarshan Sukhani of s2analytics.com has also expects Kotak Mahindra Bank to see decline from current levels in his recent appearance on CNBC-TV18.

In terms of stock market performance, Kotak Mahindra Bank had a good run during the past six months. The stock outperformed the market by 18 per cent during the past six months.