Rising for the third straight day, YES Bank shares were trading 1% higher in Thursday's volatile session.
The stock of the private lender opened at Rs 16.20 against its previous close of Rs 16.15 and touched the day's high of Rs 16.30, rising almost 1% intraday. The stock also hit an intraday low of Rs 16.10. Yesterday, YES Bank stock closed 3.1% higher against previous close of Rs 15.65.
The share has risen 3.8% in the last 3 days of consecutive gains.
YES Bank stock trades higher than 5, 20 and 100-day moving averages but lower than 50 and 200-day moving averages.
YES Bank share has fallen almost 1% in a month. Year-to-date, the stock is down 9.5%. Share of the private lender has fallen over 54% in one year.
Market capitalisation of the lender stood flat at Rs 0.40 lakh crore. The stock has touched a 52-week high of Rs 87.95 and a 52-week low of Rs 5.55.
In terms of brokerage views, Emkay Research gave a 'Sell' rating to the stock and set a target price of Rs 11 for the share, given sub-par return ratios and unfavourable risk-reward with higher valuations.
"We believe that the transfer of NPAs to a separate ARC (somewhat similar to IDBI in 2003) probably means window dressing standalone bank B/sheet,but we need to see the extent of hair-cuts, structure of ARC and recovery record in the ARC, which is not inspiring in case of IDBI SASF," Emkay Research said in its report.
Kotak Institutional Equities also have a sell rating for the lender stock with a fair value of Rs 11, at a downside of 32%.
Similarly, ICICI Securities said in a recent note that YES Bank's December-quarter earnings have aggravated fears of its asset quality issues and gave a "hold" rating on the stock with a revised price target of Rs 16.
"The portfolio vulnerability becomes visible from, a spike in standstill non-performing loans or NPLs (from 1.5% to 5%), SMA-2 pool (from 2.4% to 4%), SMA-1 (from 1.6% to 7.3), and additional restructuring outside of this pool at 3.2% over and above the labelled non-performing assets at 22%," it added.
Brokerage house Geojit, as well as BNP Paribas, have a sell rating for the stock and reduced its TP. Nirmal Bang also continues to maintain a negative outlook on the bank and values the stock at Rs 13, based on 1.0x FY23E ABV.
The free-fall in YES Bank's stock to double digits was on the back of corporate governance lapses and under-reporting of NPAs. This led to the placement of the lender under a moratorium by the central bank last year. A consortium of lenders led by the country's largest lender- State Bank of India infused money into the bank to bail it out from deteriorating financial health.