⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
YESBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | YESBANK | Market Cap | 66,335 Cr. | Current Price | 21.1 ₹ | High / Low | 24.3 ₹ |
| Stock P/E | 21.1 | Book Value | 16.0 ₹ | Dividend Yield | 0.00 % | ROCE | 6.34 % |
| ROE | 5.38 % | Face Value | 2.00 ₹ | DMA 50 | 22.0 ₹ | DMA 200 | 21.3 ₹ |
| Chg in FII Hold | 0.79 % | Chg in DII Hold | 0.33 % | PAT Qtr | 952 Cr. | PAT Prev Qtr | 654 Cr. |
| RSI | 40.2 | MACD | -0.27 | Volume | 6,37,22,782 | Avg Vol 1Wk | 12,99,91,146 |
| Low price | 16.0 ₹ | High price | 24.3 ₹ | PEG Ratio | 0.68 | Debt to equity | 7.09 |
| 52w Index | 61.8 % | Qtr Profit Var | 55.4 % | EPS | 1.00 ₹ | Industry PE | 15.8 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 654 Cr. to 952 Cr. (+55.4%), showing strong sequential growth.
- Margins & Returns: ROCE at 6.34% and ROE at 5.38% indicate weak efficiency compared to peers.
- Debt Ratios: Debt-to-equity at 7.09 reflects very high leverage, raising financial risk.
- Cash Flows: No dividend payout (0.00%) suggests focus on capital retention rather than shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 21.1 vs industry average of 15.8 → trades at a premium.
- P/B Ratio: Current Price / Book Value ≈ 1.32 → close to fair value.
- PEG Ratio: 0.68 → indicates reasonable valuation relative to growth.
- Intrinsic Value: Current price (21.1 ₹) appears fairly valued, supported by earnings recovery but constrained by high leverage.
🏢 Business Model & Competitive Advantage
- Operates in banking and financial services with a large retail and corporate base.
- Sequential profit growth shows operational recovery.
- High debt and weak return ratios limit competitive strength compared to stronger peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 19 ₹ – 21 ₹, near support levels and 52-week low zone.
- Long-Term Holding: Suitable only for speculative investors betting on turnaround; conservative investors should prefer stronger banks.
✅ Positive
- Quarterly PAT growth (+55.4%) shows strong recovery momentum.
- FII holdings increased (+0.79%) and DII holdings increased (+0.33%), reflecting institutional support.
- PEG ratio (0.68) indicates reasonable valuation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (7.09) raises financial risk.
- Weak ROCE (6.34%) and ROE (5.38%) compared to industry peers.
- No dividend payout reduces shareholder returns.
📉 Company Negative News
- Stock trading below both 50 DMA (22 ₹) and 200 DMA (21.3 ₹), indicating weak momentum.
- RSI at 40.2 and negative MACD (-0.27) suggest bearish technical outlook.
📈 Company Positive News
- Quarterly PAT improved significantly from 654 Cr. to 952 Cr.
- Institutional holdings (FII and DII) showed increases, reflecting confidence in recovery.
🏭 Industry
- Industry P/E at 15.8 indicates sector trades at lower multiples.
- Banking sector benefits from credit growth and digital adoption.
- YESBANK trades at a premium, reflecting speculative sentiment on turnaround potential.
🔎 Conclusion
YESBANK shows signs of recovery with strong sequential profit growth and institutional support, but remains burdened by high leverage and weak efficiency ratios. Entry is advisable near 19 ₹ – 21 ₹ for speculative investors, with staggered accumulation to mitigate risks. Conservative investors may prefer stronger peers with healthier fundamentals. Overall, YESBANK remains a high-risk, turnaround candidate in the banking sector.