AgenciesICICI Securities has downgraded Yes Bank to 'reduce' from 'hold' calling the stock "unattractive" from the risk-to-reward perspective. Putting the price target at Rs 13.5 per share, the domestic brokerage firm is valuing the stock at 0.9X FY25E ABV (adjusted book value). The stock is currently trading at ABV of 1.0x FY25.
The brokerage has expressed concerns over the company's operating earnings profile (1.0% for FY23), which it said was muted. It said a gradual improvement going ahead (1.2-1.3% for FY 2024-25) is expected of the company due to relatively higher gestation period of retail business and intense competition.
The stock was trading at Rs 15.60 on the NSE at 1 pm and was down 0.10 or 0.64% from Monday’s closing price.
Not all that was said is going against the company. ICICI Securities is impressed by YES Bank’s progress in ‘retailisation’ of the balance sheet calling the feat to be remarkable. It also praised the sharp clean-up in asset quality and improved capital levels.
“The bank appears to be the preferred banker to ‘Digital India’ and has a disproportionate market share in digital payments,” ICICI Securities said.
ICICI Securities in a note said YES Bank reported a mixed set of Q4FY23 earnings with healthy business growth, NIMs [net interest margins] and improvement in headline net stress. It said the profitability (RoA at 0.2%) remained weak due to continued investment in franchise and retail orientation.
Yes Bank reported a net profit of Rs 202.43 crore, down 45% YoY. PAT in Q4FY22 stood at Rs 367.46, which was below the Street's estimates in the range of Rs 232-405 crore.
The net profit for FY23 stood at Rs 717.40 versus Rs 1,066.21 crore reported in FY22. Q4FY23 NII stood at Rs 2,105 crore, up 15.7% Y-o-Y and 6.8% Q-o-Q. FY23 NII at Rs 7,918 crore was up 21.8% Y-o-Y. NIM for Q4FY23 at 2.8% is up 30 bps Y-o-Y and Q-o-Q. FY23 NIM at 2.6% is up 30 bps Y-o-Y.
The stock has outperformed the NIfty50 and given nearly 8% returns over the past 12 months as against 3.5% returned by the broader market index according to Trendlyne data.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The brokerage has expressed concerns over the company's operating earnings profile (1.0% for FY23), which it said was muted. It said a gradual improvement going ahead (1.2-1.3% for FY 2024-25) is expected of the company due to relatively higher gestation period of retail business and intense competition.
The stock was trading at Rs 15.60 on the NSE at 1 pm and was down 0.10 or 0.64% from Monday’s closing price.
Not all that was said is going against the company. ICICI Securities is impressed by YES Bank’s progress in ‘retailisation’ of the balance sheet calling the feat to be remarkable. It also praised the sharp clean-up in asset quality and improved capital levels.
“The bank appears to be the preferred banker to ‘Digital India’ and has a disproportionate market share in digital payments,” ICICI Securities said.
ICICI Securities in a note said YES Bank reported a mixed set of Q4FY23 earnings with healthy business growth, NIMs [net interest margins] and improvement in headline net stress. It said the profitability (RoA at 0.2%) remained weak due to continued investment in franchise and retail orientation.
Yes Bank reported a net profit of Rs 202.43 crore, down 45% YoY. PAT in Q4FY22 stood at Rs 367.46, which was below the Street's estimates in the range of Rs 232-405 crore.
The net profit for FY23 stood at Rs 717.40 versus Rs 1,066.21 crore reported in FY22. Q4FY23 NII stood at Rs 2,105 crore, up 15.7% Y-o-Y and 6.8% Q-o-Q. FY23 NII at Rs 7,918 crore was up 21.8% Y-o-Y. NIM for Q4FY23 at 2.8% is up 30 bps Y-o-Y and Q-o-Q. FY23 NIM at 2.6% is up 30 bps Y-o-Y.
The stock has outperformed the NIfty50 and given nearly 8% returns over the past 12 months as against 3.5% returned by the broader market index according to Trendlyne data.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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