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Highlights:
- Brokers maintain its SELL Rating on Yes Bank, as valuation remains expensive
- Revenue, Profits, and Profit Margins are increasing on Q-O-Q Basis.
- FIIs have increased their shareholding in Yes Bank in the March Quarter
- Despite giving a Sell Rating on Yes Bank, Goldman Sachs buys a 1.23% stake in Yes Bank on 2-3 March 2024.
- P/E Ratio of Yes Bank is Still higher than the industry average.
- NPAs have decreased in the last quarter, which is a good sign.
In recent times Yes Bank saw some swings in its stock Price, where it crashed around 10% in the week (as of writing this article) because the brokerage firm Goldman Sachs has given it a Sell rating (previously “Neutral”) and some of them have maintained its Sell Rating (JM Financial & Kotak Institutional Equities) to around Rs. 20 including domestic brokerage firm ICICI securities as the valuation of the company is still expensive.
More than that, On Thursday, 2nd May 2024, Yes Bank stock slipped 3.44% as the Bank received a service Tax demand order with a penalty of Rs. 6.42 crores from the Office of the Commissioner of GST & Central Excise, Maharashtra.
These falls may create fear in the investors but in the long run, this bank has the potential to grow as the company’s Revenue and profit are continuously rising on a Q-O-Q basis, where its profit in Q4 24 is Rs. 452 Cr, which is a 123% jump from the year-ago period which was at 202.43 Cr and a 92% jump from the previous quarter.
But if you look at a longer time frame then Yes Banks gives an astonishing 55.95% return in 1 year, beating Nift50 by 31% and Bank Nifty by 42% which is a huge margin.
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About Yes Bank
5.8/10
BSE: 532648
NSE: YESBANK
About YES Bank-
Yes Bank is an Indian private-sector bank, founded in 2005 by Rana Kapoor and Ashok Kapoor. It is a commercial Bank offering a broad range of products and services to its diversified client base including Retail, corporate, and MSME clients. YES Bank provides Retail and corporate & SME Banking services with a wide range of products including, Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction Banking, and Wealth Management through its Pan-India network of 1,198 branches, 193 BCBOs, and over 1,287 ATMs across more than 300 Districts in the country.
| Market Cap | 71,805 Cr |
| PE Ratio | 55.47 |
| ROE | 3.12% |
| Dividend Yield | 0.00% |
Yes Bank Stock Analysis & How the Stock is Doing?
Looking at the technical chart of Yes Bank – then it seems that it’s currently trading above its 50, 100, and 200-day Moving Average, which works great as a support and resistance level.
But if you look at the chart then it’s currently trading on an ascending trend line, forming a Symmetrical Triangle Pattern, which makes it the perfect Stock to observe, because the breakout from the pattern in any direction usually shows a rally in that direction –
So, as an investor, I will buy this stock for the short term if it gives the breakout in the upper direction, But if it breaks the lower trendline then I will wait for it to reach the drawn support level then I will enter into this stock.
But the 20 rupees price target is kind of a bluff in my opinion, and the stock may gain some momentum before it reaches there.
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Is Yes Bank a Good Buy – My Opinion
After looking at the Yes Bank’s Financials, Fundamentals, Technical Analysis, News, Brokerage Reports, it seems that something is still missing from my view, as the US-based investment firm Carlyle Group has offloaded 59,40,00,000 shares or nearly 2% stake in YES Bank via block deal at a price of Rs 24.27 per share, and on the Other Hand, Goldman Sachs (Singapore) PTE bought 36,92,43,945 shares at a price of Rs 24.26 per share, after giving it a Sell Rating, which is a bit difficult to digest.
Anyway, If you ask me – then I am also in trouble going after this stock,
But if it comes to my drawn level in the image above – then I will enter this stock for the long term (ideally for a year or two) and based on the further performance of the bank, I will decide, whether to hold it or sell.
Should You Buy or Sell the Shares of Yes Bank?
It’s looking good as of now because its financials are telling a bright future for Yes Bank, but there may be some correction left, so wait for it to touch the support level and then we can Buy Yes Bank.
Yes Bank still has something to fix,
- the stock valuation is still high
- company’s interest payment is high compared to earnings
- Debt is also Increasing
- The P/E Ratio is still too high from the industry average.
But something is still looking good for the company,
- Where its NPAs are declining, which is a good sign.
- Revenue and Profits are rising with an increase in Profit Margin
- company is using its capital effectively to generate profit
- FIIs are also increasing their shareholding
Yes Bank Share Price Target by Brokers
| Brokerage Firm | Type | Target | Report Link |
|---|---|---|---|
| ICICI Securities | Sell | 20 | View Report |
Yes Bank Share Price Target for 2025 and 2030
The P/E Ratio of Yes Bank is still expensive compared to its peers and on the flip side, the ROE (Return on Equity) is very poor compared to similar companies, where the Yes Bank ROE is still around only 3% from the last 2 quarters despite the company is making profits.
On the other hand, its rival companies including Canara Bank, IDBI, and Indian Bank have an impressive ROE of 17.77%, 12.01%, and 20.20% respectively.
As of now, in my opinion, Yes Bank’s Share Price is still Overvalued and it is likely that the share price of Yes Bank may fall in coming months. But in the longer time frame, it’s looking good and one can go after this stock after the correction.
- Yes Bank Share Price Target for 2025 – Rs. 20.00 – Rs. 12.00 (Tradingview)
- Yes Bank Share Price Target for 2030 – Rs. 80.00 (if we assume that the stock price of Yes Bank grows with the same speed as the past 3 years CAGR which is 24%)
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Disclaimer: The stock Mentioned in this Article is just for Informational Purposes/or used as an Example. It can not be taken as an Investment Advice in any case, and also I am not SEBI Registered. Learn More
