2 reasons why YES Bank shares are in focus today (2024)

FAQs

2 reasons why YES Bank shares are in focus today? ›

Shares of YES Bank will be under focus during the trading session on Thursday on the back of multiple reasons including trading a rating upgrade from Moody's and interest from buyers in the private lender from Japan and Middle east, as per the reports from Bloomberg.

On why are Yes Bank shares rising today, stock market experts said that the global rating agency Moody's upgraded its outlook on the private lender from 'stable' to positive, which triggered strong buying in the early morning session.

Additionally, the RSI across daily and higher timeframes is trading above their medians without showing any divergence against the price, suggesting a solid momentum in price. Based on these observations, we recommend purchasing shares of Yes Bank with a target price of 32.30 and a protective stop at 24.10.

Other media earlier reported the interest of Japanese and Middle Eastern lenders in acquiring SBI's stake in Yes Bank. SBI has already received RBI's verbal approval to divest its whole stake in Yes Bank, one of the sources said, adding that SBI is expecting to make a profit of around 100 billion rupees.

They also believe that the asset quality of Yes Bank may remain healthy in upcoming quarters, which implies a low risk of default or bad loans. They advised Yes Bank shareholders to hold the scrip as it may touch ₹32 apiece level ahead of the Q1 results 2024.

The banking sector's profitability has improved, and healthy balance sheets support it while the financial services sector remains a major PAT contributor to Nifty Total Market Index.

The ownership structure of the bank is diverse, with both institutional and retail shareholders holding significant stakes. The State Bank of India (SBI), the largest scheduled commercial bank in India, is the largest shareholder, holding 23.99% of the shares.

If you hold more than 100 shares of Yes Bank, you are locked in for 3 years. You will not be able to sell it.

"As and when that happens, that (the breakout above ₹30) will take the stock to ₹100, but it may take five years," Gaba said. Kotak Institutional Equities maintained its "Sell" rating on Yes Bank post its March quarter results with a price target of ₹19 apiece.

Who is buying Yes Bank? ›

As part of the Reserve Bank of India's 'Reconstruction Scheme 2020', a consortium of eight banks led by government-owned lender State Bank of India (SBI) executed equity commitments in the bank. SBI initially bought shares worth Rs 6,050 crore for a 48% stake in Yes Bank at a consideration of Rs 10 per share.

In Q3 FY24, YES Bank reported a net profit of Rs231 crore, marking a 4.4-fold increase YoY and a 2.8% increase QoQ. Yes Bank clarified on February 8 that it was not engaged in any negotiations related to SBI's stake sale via a block deal, as reported in the media.

Key Highlights

The Dividend per Share of Yes Bank Ltd is ₹ 0 as of 2024. The Dividend Payout of Yes Bank Ltd changed from 29.08 % on March 2019 to 0 % on March 2024 . This represents a CAGR of -100.00% over 6 years. . The Latest Trading Price of Yes Bank Ltd is ₹ 23.4 as of 17 Sep 15:30.

The private lender commanded a total market capitalization of Rs 78,250 crore. Shares of YES Bank have surged more than 10 per cent in 2024 so far, while the stock is up 45 per cent in the last one year.

The Relative Value of one YESBANK stock under the Base Case scenario is 21.12 INR. Compared to the current market price of 23.49 INR, Yes Bank Ltd is Overvalued by 10%.

YES Bank share price: The stock has slipped 8.06 per cent in the past one month and 28.01 per cent from its 52-week high price of Rs 32.81, a level seen on February 9 this year. An analyst said YES Bank lowered the net interest margin (NIM), which would act as a dragger.

If you hold more than 100 shares of Yes Bank, you are locked in for 3 years. You will not be able to sell it.

YES BANK's Board of Directors approve the allotment of equity shares and warrants to two global private equity investors – Carlyle and Advent International.