Sell Yes Bank, target price Rs 9: Emkay Global Financial Services

Emkay has given a sell rating to Yes Bank with a target price of Rs 9. The stock closed at Rs. 13.14 on BSE.

Investment Rationale
The brokerage turned neutral on LTFH (from negative) on the back of an improving rural outlook, early signs of pick-up in real estate and infra, reduction in defocussed book to less than 5 per cent and adequate provisioning buffers. The brokerage increased their FY22/23E EPS by ~11 per cent/17 per cent and increase our TP to Rs 69 (Rs 48 earlier), corresponding to 0.7x P/B FY23E.

Financials
The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 32344.36 Crore and Net Non Performing Assets (Net NPAs) of Rs 7868.13 Crore. For the quarter ended 30-09-2020, the company has reported a Consolidated Interest Income of Rs 4431.09 Crore, down 2.97 per cent from last quarter Interest Income of Rs 4566.69 Crore and down 23.88 per cent from last year same quarter Interest Income of Rs 5821.09 Crore. The bank has reported net profit after tax of Rs 120.25 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 63.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 7.1 per cent and DIIs held 5.0 per cent and public and others 24.3 per cent.