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Yes Bank defies bearish trend, continues upward climb

Yes Bank

The Yes Bank (NSE: YESBANK) share price is down by less than a percentage point in the late hours of today’s trading session and is poised to close the markets with a loss. The current bearish trend is an extension of the past two weeks bearish trend, which has seen it drop by 3 percent since the year started.

However, despite the recent drop, the recent long-term trend of the company has been aggressively bullish. One of the reasons for its bullish trend has been the bank’s reported 12% year-on-year increase in loans and advances in Q3 of the current fiscal year, rising from INR 176,241 crore to INR 196,826 crore. This figure has been normalized to account for the sale of INR 5,171 crore of stressed assets to JC Flowers Asset Reconstruction, which the bank announced in December. Deposits also increased by 16% in Q3, from INR 184,288 crore in the same period last year to INR 213,608 crore.

Fundamental Analysis

According to market experts, Yes Bank is a stock to watch in the coming days. Sandeep Pandey of MK Global Financial Services has advised high-risk traders to invest in Yes Bank, predicting that the stock could reach INR 60 per share in the next four to five years, offering shareholders a return of at least 200%.

In addition, Yes Bank has been in the news for its collaboration with Falcon, a startup company working on a banking-as-a-service model, and for its partnership with Microsoft. The bank’s shares have gained more than 50% in the past year and are currently trading at INR 21 per share.

It’s worth noting that Yes Bank reported a 32% decline in net profit in Q2 of the current fiscal year, with net profit falling from INR 225 crore in the same period the previous year to INR 153 crore. However, its core net interest income rose by 31.7% to INR 1,991 crore in Q2, driven by 11% growth in loans and a 0.40% expansion in net interest margin to 2.6%. These figures indicate that despite the recent drop in share price, the bank’s long-term financial performance and potential for growth make it a positive investment opportunity.

Yes Bank Price Forecast:

As seen from the fundamental analysis above, Yes Bank will likely continue trending upward for the long term. On the fundamental side of things, the recent price action also confirms the likelihood of a continued bullish trend.

Therefore, my Yes Bank price prediction expects it to trade above the INR 25 price level in the next few trading sessions. There is a high likelihood that we might see the Yes Bank share price hitting INR 30 within the first quarter of 2023. A drop below INR 15, however, will invalidate my bullish analysis.

Daily Chart