YES Bank sees a rise in the stock price in an unstable market

Amid Tuesday’s volatile session, the stock of YES Bank rose by almost 1%. Following a fall of two consecutive days, the YES Bank stock opened at the last day’s rate of Rs. 15.60. While it also saw a drop to Rs. 15.50, when the market was dwindling, it subsequently gained 0.96% points, taking it to an intra-day high of Rs. 15.75.

The stock of YES Bank usually trades higher than 100-day moving averages. However, it trades lower than 5, 20, 50 and 200-day moving averages. The shares of the private lender have fallen 4% in one week, 8% in a month. Year-to-date, the stock has dropped by 12% and 55% in just one financial year.

The market capitalization of the lender closed at Rs. 39,210.93 crore. Due to such an unstable market, the stock saw a huge jump to Rs. 87.95, which is a 52-week high, while it also saw a low of Rs. 5.55, which is a one-year low.

Talking about the brokerage views, the market experts at Emkay Research provided a ‘Sell’ rating to the stock and determined a target rate of Rs. 11 for the stock, given below-par return ratios and critical risk-reward with higher quotations.

One of the leading market experts at Emkay Research wrote in his report: “We believe that the transfer of Non-Performing Assets to a separate ARC usually means the standalone window dressing bank B/sheet, but we need to view the limit to the need of hair-cuts, structure of ARC and the record of recovery in the ARC, which is not looking positive in case of IDBI SASF.”

In their latest note, the Private Securities said that YES Bank’s December-quarter incomes have vexed fears of its asset quality problems and gave a ‘Hold’ rating on the share with a revised price target of Rs. 16.

The continuous drop in the stock price of YES Bank to double-digit numbers was on the back of corporate governance inconsistencies and under-reporting of NPAs. This resulted in the lenders’ placement under a moratorium by the nationalized banks in the previous year.



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