Yes Bank Share Price Target 2024: ICICI Securities has maintained SELL rating on Yes Bank shares and sees a sharp decline in the stock price. In its research report, the brokerage said that the current valuations of Yes Bank appear fully pricing in the financial turnaround.
During the Q1 FY2025, Yes Bank reported a PAT of Rs 5 billion. ICICI Securities said that the bank's NIM remained stable QoQ while opex and credit costs declined QoQ. The RoA was flattish due to lower other income.
Post the warrant conversion, it said, CET 1 stands at 13.3 per cent. Operating parameters have been on improving trajectory though RoA remains burdened by bulky RIDF investment (~11 per cent of total assets). The bank is making concerted efforts in organic PSL origination, which should ease incremental RIDF burden, aiding yields and RoAs. This, coupled with easing credit costs, could improve RoA to 0.7/1 per cent by FY25/26E. However, current valuation at ~1.5x FY26E ABV seems to adequately capture the turnaround.
It added that risk for Yes Bank is the faster than expected ramp-up in organic PSL yielding steep RoA improvement.
ICICI Securities has maintained SELL rating on Yes Bank with an unchanged target price of Rs 20.
Yes Bank, headquartered in Mumbai, is a constituent of BSE 100 index. Its shares closed 1.16 per cent lower at rs 24.62 on Thursday (July 25).
According to BSE analytics on July 25, the private lender's shares have delivered a positive return of 45 per cent in the last one year. In two and three years, the stock has sprinted 72 per cent and 88 per cent, respectively.
Yes Bank shares made a 52-week high of Rs 32.81 on February 9 this year. The counter has corrected more than 30 per cent its 52-week high. Its 52-week low is Rs 14.10.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
2024-07-26T02:06:23Z dg43tfdfdgfd