YES Bank shares surge 7% amid heavy volumes; where is the stock headed now?
Despite a fall of 23 per cent in the year 2023 so far, shares of Yes Bank have delivered a return of about 30 per cent to the investors in the last one year
- Jun 8, 2023,
- Updated Jun 8, 2023 2:21 PM IST
Shares of YES Bank surged around 7 per cent during the early trading session Thursday amid the heavy trading volumes on the exchange. The beaten-down lender has been struggling to gain momentum in the year 2023 after it saw some action in December 2022.
According to the data from BSE, about 3.34 crore equity shares of YES Bank worth Rs 55.75 crore, while more than 19.84 crore shares of the private lender worth Rs 331.5 crore exchanged hands on the National Stock Exchange (NSE). Shares of Yes Bank surged about 7 per cent to Rs 17.20 on Thursday, amid the heavy trading volumes, before giving up some gains. The lender was commanding a total market capitalization of more than Rs 47,500 crore. The stock had settled at Rs 16.15 in the previous session.
YES Bank sees scope to expand its net interest margin by 100 basis points over the next three years by raising more low-cost deposits and lending to higher-yield clients, its managing director and CEO Prashant Kumar told Reuters on Wednesday. "YES Bank is also counting on higher fee income growth to help improve margins," he added.
The private lender currently commands a P/E multiple of 64.6 times, with its return on equity (RoE) at 2.18 per cent and return on capital employed (ROCE) at 2.18 per cent. It is currently trading at a price-to-book value of only 1.14 times. Despite a fall of 23 per cent in the year 2023 so far, shares of Yes Bank have delivered a return of about 30 per cent to investors in the last one year. Analysts, decoding the technical charts, see more steam left in the stock, while other brokerages think otherwise.
"YES Bank, on its daily charts, has broken out of its falling trend line with volume, indicating a short-term reversal in this stock. It can be observed that the stock has closed above its 50DMA and has just managed to close at its 200 DMA, with a positive crossover of 5 and 20-DMA supporting the bullish stance," said Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking.
On daily charts, the technical indicator RSI has seen a positive divergence on this stock and that could trigger a short-term rally. So, from a trading perspective, if one wants to trade YES bank, then the view is to go long on this stock at current levels of Rs 16.65 and on dips to the levels of Rs 15.30, for an upside target placed Rs 18.50-21 levels, with a protective stop loss below Rs 14.40.
YES Bank's stock has seen a steady and gradual rise in the past two months, currently having a spurt with huge volume participation witnessed improving the bias, said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher.
"A decisive breach above the significant 200 period DMA and previous peak zone of of Rs 17.30 is required to confirm the trend and can expect for further movement in the coming days with next target expected till Rs 18.50," she said.
Private lender Yes Bank had reported a 45 per cent drop in standalone net profit at Rs 202 crore for the quarter ending March 31, 2023, as provisions for bad loans increased. The bank reported a standalone net profit of Rs 367 crore in the year-ago period. Domestic brokerage firm ICICI Securities has downgraded Yes Bank to 'reduce' from 'hold' after Q4 results with a target price of Rs 13.5 apiece as the brokerage found the 'unattractive' from the risk-to-reward perspective. Kotak Institutional Equities pegs YES Bank at Rs 16 with a 'reduce' tag.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Watch: Buzzing stocks on June 8, 2023: Paytm, YES Bank, NIIT, Gati, SpiceJet, others
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Shares of YES Bank surged around 7 per cent during the early trading session Thursday amid the heavy trading volumes on the exchange. The beaten-down lender has been struggling to gain momentum in the year 2023 after it saw some action in December 2022.
According to the data from BSE, about 3.34 crore equity shares of YES Bank worth Rs 55.75 crore, while more than 19.84 crore shares of the private lender worth Rs 331.5 crore exchanged hands on the National Stock Exchange (NSE). Shares of Yes Bank surged about 7 per cent to Rs 17.20 on Thursday, amid the heavy trading volumes, before giving up some gains. The lender was commanding a total market capitalization of more than Rs 47,500 crore. The stock had settled at Rs 16.15 in the previous session.
YES Bank sees scope to expand its net interest margin by 100 basis points over the next three years by raising more low-cost deposits and lending to higher-yield clients, its managing director and CEO Prashant Kumar told Reuters on Wednesday. "YES Bank is also counting on higher fee income growth to help improve margins," he added.
The private lender currently commands a P/E multiple of 64.6 times, with its return on equity (RoE) at 2.18 per cent and return on capital employed (ROCE) at 2.18 per cent. It is currently trading at a price-to-book value of only 1.14 times. Despite a fall of 23 per cent in the year 2023 so far, shares of Yes Bank have delivered a return of about 30 per cent to investors in the last one year. Analysts, decoding the technical charts, see more steam left in the stock, while other brokerages think otherwise.
"YES Bank, on its daily charts, has broken out of its falling trend line with volume, indicating a short-term reversal in this stock. It can be observed that the stock has closed above its 50DMA and has just managed to close at its 200 DMA, with a positive crossover of 5 and 20-DMA supporting the bullish stance," said Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking.
On daily charts, the technical indicator RSI has seen a positive divergence on this stock and that could trigger a short-term rally. So, from a trading perspective, if one wants to trade YES bank, then the view is to go long on this stock at current levels of Rs 16.65 and on dips to the levels of Rs 15.30, for an upside target placed Rs 18.50-21 levels, with a protective stop loss below Rs 14.40.
YES Bank's stock has seen a steady and gradual rise in the past two months, currently having a spurt with huge volume participation witnessed improving the bias, said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher.
"A decisive breach above the significant 200 period DMA and previous peak zone of of Rs 17.30 is required to confirm the trend and can expect for further movement in the coming days with next target expected till Rs 18.50," she said.
Private lender Yes Bank had reported a 45 per cent drop in standalone net profit at Rs 202 crore for the quarter ending March 31, 2023, as provisions for bad loans increased. The bank reported a standalone net profit of Rs 367 crore in the year-ago period. Domestic brokerage firm ICICI Securities has downgraded Yes Bank to 'reduce' from 'hold' after Q4 results with a target price of Rs 13.5 apiece as the brokerage found the 'unattractive' from the risk-to-reward perspective. Kotak Institutional Equities pegs YES Bank at Rs 16 with a 'reduce' tag.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Watch: Buzzing stocks on June 8, 2023: Paytm, YES Bank, NIIT, Gati, SpiceJet, others
Also read: SpiceJet shares surge 8% today amid heavy volumes; here's why
Also read: Tata Communications shares upbeat outlook; stock price targets suggest most positives priced in