- Yes Bank share price has broken a three-session losing streak to return to the upside, but does it have what it takes to maintain traction?
Yes Bank share price has returned to the upside on Monday, retesting the ₹20 mark. The stock was up by 1.78% at the time of writing, snapping a four-session losing streak. It has been on a general down turn in July, reflecting a broader market sentiment amid investor jitters underpinned by the macroeconomic uncertainty created by renewed trade tariff fears. In addition, Yes Bank (BSE: YESBANK) faces company-specific pressures to improve its earnings prospects.
After the 20% stake acquisition by Japan’s SMBC bank, Yes Bank faces an elevated scruitiny of its financials. Its books point to modest performance, making it vulnerable to potential shocks from macroeconomic pressures. Its ROE is at 5.4%, which is largely a modest return. As far as its valuation goes, its price-to-earnings (P/E) ratio is at 25x, with the Price-to-Book (P/B) ratio at about 1.3x,both of which are largely in line with its mid-cap peers.
On the brighter side, Yes Bank share price is supported by the bank’s recently-completed successful capital raises. These include a ₹8,900 crore (approximately $1.07 billion) raise by Carlyle and Advent as well as the 20% stake acquisition by SMBC. These have certainly improved the bank’s capital adequacy, which is good for its medium and long-term growth prospects.
Yes Bank Share Price Prediction
Yes Bank share price pivot mark is at ₹19.90 and action above that level will give buyers control. The first resistance is likely to come at ₹20.10, but a stronger momentum will breach that barrier and potentially push gains higher to test ₹20.35.
On the other hand, going below ₹19.90 will signal control by the sellers. That is likely to establish the first support at at ₹19.70. The upside narrative will be invalid if the price breaks below that level. Also, an extended control by the sellers could push YESBANK price lower and test the second support at ₹19.40.
