YESBANK - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: YES Bank shows signs of recovery but remains fundamentally weak. The ROE of 5.38% and ROCE of 6.34% are below industry standards, indicating inefficient capital use. The debt-to-equity ratio of 7.28 is alarmingly high, reflecting significant leverage. Quarterly profit rose by 18.3% to ₹654 Cr, but EPS remains low at ₹0.89.

💰 Valuation Metrics: The stock trades at a P/E of 25.4, above the industry average of 14.6, suggesting overvaluation. The P/B ratio of ~1.45 (₹22.7 / ₹15.7) is moderate, and the PEG ratio of 0.82 indicates fair valuation relative to growth. Dividend yield is nil, reducing income appeal.

🏢 Business Model & Competitive Edge: YES Bank is a full-service private sector bank with a pan-India presence. It offers retail, MSME, and wholesale banking services. Despite past governance issues, the bank is rebuilding its franchise with digital initiatives and improved asset quality. However, high leverage and low profitability remain concerns.

📉 Entry Zone Recommendation: With an RSI of 56.7, the stock is in neutral territory. A favorable entry zone lies between ₹20–₹21.5, near its 200 DMA of ₹20.5. MACD at 0.34 shows mild bullish momentum. Accumulation on dips is advised for speculative exposure.

📈 Long-Term Holding Guidance: YES Bank is suitable for high-risk investors betting on turnaround potential. Hold with a 3–5 year horizon, monitoring asset quality, capital adequacy, and earnings consistency.