Uptrend in Yes Bank Shares Should You Accumulate at Current Levels?

 

• Yes Bank share price hit a two-year high of ₹24.75 earlier this week

Yes Bank share price has rebounded in today's session after retreating from 2-year highs. Yes Bank share price opened lower today but soon attracted buying interest among market bulls and climbed to a high of ₹22.75 on NSE, registering a rise of nearly 3 per cent from its Wednesday's level of ₹22.10 . In the last five sessions, Yes Bank shares have moved from ₹17.75 to ₹22.75, a gain of around 28 per cent during this period.

According to Prabhudas Lilladher, Yes Bank shares need to sustain above ₹20.75 level to maintain positive bias.

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said, "Yes Bank share price has seen a strong correction in bias after a long consolidation phase between ₹12 and ₹17 levels and indicated a breakout with strong volume participation." Trend. The stock moved from ₹17 level to ₹24.75 in Friday to Tuesday sessions but saw some heavy profit booking on Wednesday and closed near ₹22 zone.

Vaishali Parekh of Prabhudas Lilladher further said that further upside in Yes Bank share price is expected but the stock needs to sustain above the previous peak area of ₹20.75 to maintain the positive bias gained in last five sessions .

"If Yes Bank share price sustains above ₹20.75 per share level, we expect initial target of ₹28 to ₹32 and then ₹37 levels in next 2 to 3 months. Below ₹18 zone Our view turns negative after a decisive breach. Witness."

A Morgan Stanley report says that a strong cyclical recovery in the performance of private lenders can be expected over the next few years. The brokerage is also expecting a strong ROA improvement as higher PPOP margins / lower credit cost will help as macros improve further.

Highlighting the strong fundamentals supporting Yes Bank shares, the Morgan Stanley research report said, "We expect a strong improvement in RoA to 25% by F1, driven by higher PPoP margins/lower credit costs." Will help as macros improve further. But at 1.6x F24 P/.BV, the stock is under priced. Beyond 1% ROA, recovery will be difficult and gradual as we see a lot of competitive intensity in this cycle Huh.

The brokerage further said that Yes Bank has focused on mitigating asset quality challenges by accelerating provisions and cleaning up its balance sheet. “We expect its gross bad loans to fall to 22% by the end of F20 from the peak of 22% in March-9. Also, unlike the previous cycle, the bank has focused on increasing the share of retail on both sides of the balance sheet. In fact, the share of CASA + retail deposits currently stands at 48% of total funding (vs 33% in Mar-20). On assets, retail/SME lending has grown to 66% vs 44% in Mar-20 (implied CAGR of 23%)," the brokerage said.


Ravi Singhal, CEO, GCL Securities asked Yes Bank shareholders to hold the stock for the long term, "Yes Bank shareholders can hold the stock for the long term or say keep a target of ₹44." for years." Ravi Singhal of GCL Securities advised Yes Bank shareholders to upgrade the trailing stop loss to ₹17 per level.