By The Economic Times
Yes Bank NSE 13.98 % has been in the headlines for quite some time but the recent price action on the counter has put the private lender again under the spotlights on Dalal Street.
Of late, the stock has been consistently hitting new 52-week highs recently, and zoomed more than 9% during Tuesday’s session to hit Rs 23.
The scrip has surged as much as 32% in the last three sessions from Rs 17.4 levels on Thursday, December 8.
It has gained about 50% in about three months, whereas it’s up 67% in the six-month period.
Investors are hopeful about the fresh developments of private sector lenders.
Besides, Yes Bank bank is eyeing fresh investments by Carlyle Group and Verventa Holdings.
The Reserve Bank of India (RBI) had recently given its final approval for Yes Bank’s proposal to increase capital with the help of funds infusion from Carlyle Group and Verventa Holdings.
However, investors should remember that the three-year lock-in period of big investors will come to an end in March 2023.
Lenders like SBINSE 0.56 %, Axis Bank NSE 0.61 %, ICICI Bank NSE 0.26 %, Kotak Mahindra Bank NSE 0.1%,IDFC First Bank ..
Market participants fear that this expiry may trigger more liquidity in the markets in the next three months, which may dent the lender’s price on Dalal Street.
On the contrary, analysts remain positive on the lender considering the cleaning of the balance sheet, and growth trajectory, and hope for some good performance from the lender in upcoming quarters.
Hemali Dhame, Associate Vice-president, of Kotak Securities, said she would like to see more visible improvement in the earnings of the lender.
“We do like the trajectory of the bank but wish to see more visible improvement for an upgrade,” she added.
Kotak Securities has a ‘sell’ call on the lender for now.
independent market analyst Ambareesh Baliga is bullish on the counter and said the private lender is on the growth path after cleaning up its books for the last two years.
“We are expecting the momentum to continue,” Baliga added.
He expects the stock to hit Rs 30-35.
“The lender’s market cap will be substantial at those levels and one shall reconsider the investment based on the financial performance.”
Yes, Bank reported a Q2FY23 PAT of Rs 152.82 crore, down 32% year-on-year (YoY) and 51% quarter-on-quarter (QoQ) on the back of higher credit costs.
NII was up 8%QoQ and 32% YoY aided by 20bps QoQ NIM expansion.
Decoding the charts, technical analysts said Yes Bank had broken out from an Inverse.
Head and Shoulders pattern with long consolidation and a triangle breakout in the longer time frame.
On the higher side, Rs 21 is the immediate resistance zone.
We can expect the Rs 24 levels in the near term, while on the lower side, Rs 17.5 is the strong support during any correction,” said Pravesh Gour, Senior Technical Analyst, Swastika InvestmentRakesh Bansal, Founder, of
IamRakeshBansal.
Com said the retail business of the lender is performing well and its balance sheet is much cleaner.
“Backers like State Bank of India NSE 0.60 %, LIC, and ICICI Bank are here to stay.”
For conservative investors, Bansal has a target price of Rs 48-50, whereas his aggressive outlook on the Yes Bank suggested an upside till Rs 120-140.
