YESBANK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.2

Yes Bank shows signs of a turnaround, but it’s still climbing out of a turbulent past. The bank has improved its profitability, though high leverage and lackluster return ratios temper enthusiasm. Let’s unravel its current fundamentals.

💼 Core Financial Health

Profitability

ROE: 5.46%, ROCE: 6.36% — modest returns, below ideal for a bank

EPS: ₹0.87 — small but positive, suggesting profit momentum is returning

Quarterly PAT: ₹809 Cr vs ₹745 Cr — consistent improvement

Capital Structure

Debt-to-Equity: 7.45 — unusually high, reflecting banking sector norms but still worth monitoring

Dividend Yield: 0.00% — no payouts, focus remains on internal consolidation

📊 Valuation Metrics

Metric Value Insights

P/E Ratio 22.2 Above industry average (12.6); priced for growth

P/B Ratio ~1.27 Fairly valued; signals optimism but not excessive froth

PEG Ratio 0.70 Indicates decent valuation considering profit growth

Valuation suggests some optimism baked in, but not bubble territory. PEG below 1 often reflects value if earnings growth is sustainable.

🧪 Business Model & Strategic Position

Core Focus: Retail banking, SME lending, digital banking ecosystem

Recovery Path

Strong institutional backing post-restructuring

Focus on asset quality and operational stability

Competitive Advantage

Digital infrastructure and expanding retail franchise

However, trust rebuilding and legacy loan clean-up are ongoing

📉 Technical Picture

RSI: 37.9 — close to oversold; short-term buying interest may return

MACD: -0.16 — slight bearish trend, indicating weakness

DMA Status: Trading below both 50- & 200-DMA (₹19.9) — signals bearish phase

52W Index: 30.2% — recovery from ₹16 lows but still far below ₹27.2 high

🎯 Entry Zone & Investment Guidance

Suggested Entry Range: ₹17.5–₹19.0 — near support zone and RSI comfort

Outlook

Possible long-term value as restructuring yields fruit

Target ₹23–₹25 in 12–18 months with favorable macro tailwinds and balance sheet improvement

Suitability

Fit for patient long-term investors watching for a full rebound

Avoid for short-term traders unless bullish confirmation returns

Keep tabs on institutional holding changes and NPA updates

If you'd like to compare YES Bank’s risk-adjusted return with rivals like RBL Bank or IDFC First, I can build a peer snapshot too. Just tap me in. 🏦📉📊

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