YESBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | YESBANK | Market Cap | 62,541 Cr. | Current Price | 19.9 ₹ | High / Low | 24.3 ₹ |
| Stock P/E | 18.0 | Book Value | 16.3 ₹ | Dividend Yield | 0.00 % | ROCE | 5.96 % |
| ROE | 7.03 % | Face Value | 2.00 ₹ | DMA 50 | 19.8 ₹ | DMA 200 | 20.6 ₹ |
| Chg in FII Hold | 0.68 % | Chg in DII Hold | 0.69 % | PAT Qtr | 1,068 Cr. | PAT Prev Qtr | 952 Cr. |
| RSI | 55.5 | MACD | 0.24 | Volume | 7,31,55,380 | Avg Vol 1Wk | 8,45,98,254 |
| Low price | 17.2 ₹ | High price | 24.3 ₹ | PEG Ratio | 0.26 | Debt to equity | 7.52 |
| 52w Index | 38.5 % | Qtr Profit Var | 44.8 % | EPS | 1.11 ₹ | Industry PE | 15.0 |
📊 Financials: YESBANK shows weak efficiency with ROCE at 5.96% and ROE at 7.03%, reflecting poor capital utilization. Debt-to-equity ratio is very high at 7.52, raising leverage concerns. EPS of ₹1.11 is modest, though quarterly PAT improved (₹952 Cr → ₹1,068 Cr, +44.8%), indicating earnings recovery. Cash flows remain under pressure due to high debt.
💹 Valuation: Current P/E of 18.0 is slightly above industry average (15.0), suggesting fair but not cheap valuation. PEG ratio of 0.26 highlights undervalued growth potential. P/B ratio (~1.22) is reasonable relative to book value. Dividend yield is 0.00%, offering no income support.
🏢 Business Model & Advantage: YESBANK operates in retail and corporate banking, benefiting from institutional presence and customer base. Competitive advantage is limited by weak fundamentals and high leverage, though earnings recovery and institutional inflows provide some optimism.
📈 Entry Zone: Attractive accumulation near ₹17–₹19 (close to DMA 50 and DMA 200 support). Current price (₹19.9) is near fair entry, with resistance at ₹23–₹24.
⏳ Long-Term Holding: Suitable only for speculative investors with a 2–3 year horizon. Long-term holding requires significant improvement in ROE/ROCE and debt reduction. Partial profit booking advised near ₹23–₹24 resistance.
Positive
- PEG ratio of 0.26 suggests undervalued growth potential
- Quarterly PAT growth (+44.8%)
- FII holdings increased (+0.68%)
- DII holdings increased (+0.69%)
Limitation
- Weak ROCE (5.96%) and ROE (7.03%)
- High debt-to-equity ratio (7.52)
- Dividend yield of 0.00%
- Modest EPS of ₹1.11
Company Negative News
- High leverage continues to weigh on financial stability
Company Positive News
- Quarterly PAT growth highlights earnings recovery
- Institutional inflows (FII and DII) show confidence
Industry
- Industry P/E at 15.0 indicates moderate sector valuation
- YESBANK trades slightly above industry average, reflecting cautious optimism
Conclusion
YESBANK is a speculative candidate with earnings recovery and undervalued PEG ratio, but weak efficiency metrics and high debt limit attractiveness. Entry is safer near ₹17–₹19, with profit booking advised near ₹23–₹24. Long-term holding is risky unless debt reduces and ROE/ROCE improve significantly.