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Yes Bank Forecast: Time to Go Long?

Yes Bank

In the closing hours of today’s trading season, the Yes Bank (NSE: YESBANK)share price rose by less than 0.5% after opening the session with a gap-up. This reverses yesterday’s 1.6% bearish trend and resumes a bullish trend that has seen the company’s value increase by over 25% since December 25.

Why is Yes Bank Surging?

Yes Bank, a private sector lender based in India, has been in the news recently for various reasons. In Q3 of the current fiscal year, the bank reported a 12% year-on-year increase in loans and advances, 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.

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%.

Yes Bank Price Forecast

Despite the bank reporting a decline of 32% in the second quarter of the current fiscal year, recent data has been positive. This is likely to be reflected in the markets, with Yes Bank’s price expected to continue to surge.

On the technical side, the recent price action, which has seen the company’s value increase by over 20% in the past two weeks, also points to a continued push to the upside. Therefore, my Yes Bank price forecast predicts that it will trade above INR 30 in the next few trading sessions. In the long term, a possible trade above INR 60, as predicted by Sandeep Pandey of MK Global Financial Services, is a likely scenario.

Daily Chart

Yes bank