Kotak upgrades IIFL to 'add' from 'reduce'

Kotak Institutional Equities upgrades India Infoline Ltd (IIFL) to "add" from "reduce," calling valuations "reasonable" after a recent correction.

Kotak estimates IIFL is trading at 0.8 times price-to-book ratio for fiscal 2014.

From a 2013 high reached in early January, IIFL shares have dropped over 35 % and are currently trading at Rs 57.75 as of 11:29 a.m.

Kotak says the non-banking finance business of IIFL will contribute about 65 % of its non-consolidated earnings and 80 % of its net worth in fiscal 2013.