⚠ 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: 3.4
| Stock Code | YESBANK | Market Cap | 59,433 Cr. | Current Price | 18.9 ₹ | High / Low | 24.3 ₹ |
| Stock P/E | 18.9 | Book Value | 16.0 ₹ | Dividend Yield | 0.00 % | ROCE | 6.34 % |
| ROE | 5.38 % | Face Value | 2.00 ₹ | DMA 50 | 20.7 ₹ | DMA 200 | 21.0 ₹ |
| Chg in FII Hold | 0.79 % | Chg in DII Hold | 0.33 % | PAT Qtr | 952 Cr. | PAT Prev Qtr | 654 Cr. |
| RSI | 32.2 | MACD | -0.66 | Volume | 6,99,33,090 | Avg Vol 1Wk | 9,94,09,690 |
| Low price | 16.1 ₹ | High price | 24.3 ₹ | PEG Ratio | 0.61 | Debt to equity | 7.09 |
| 52w Index | 34.8 % | Qtr Profit Var | 55.4 % | EPS | 1.00 ₹ | Industry PE | 14.8 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT improved from 654 Cr. to 952 Cr., showing strong growth. EPS at 1.00 ₹ is low relative to market cap.
- Margins & Returns: ROCE at 6.34% and ROE at 5.38% indicate weak efficiency compared to peers.
- Debt: Debt-to-equity ratio of 7.09 is very high, raising significant leverage concerns.
- Cash Flow: Supported by profitability recovery, but high debt may strain liquidity.
💹 Valuation
- P/E Ratio: 18.9 vs Industry PE of 14.8 → Slightly overvalued relative to peers.
- P/B Ratio: Current Price 18.9 ₹ vs Book Value 16.0 ₹ → Fair valuation, close to intrinsic value.
- PEG Ratio: 0.61 → Attractive valuation relative to growth.
- Intrinsic Value: Current price offers limited margin of safety but not excessively stretched.
🏢 Business Model & Competitive Advantage
- Private sector bank with large retail and corporate exposure.
- Strong customer base but weakened by past financial stress and high leverage.
- Recovery in profitability provides some resilience, though efficiency remains low.
📈 Technicals & Entry Zone
- RSI at 32.2 → Oversold territory, potential accumulation zone.
- MACD negative (-0.66) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 18–19 ₹.
- Long-Term Holding: Risky due to high debt; suitable only for speculative investors with high risk tolerance.
✅ Positive
- Quarterly PAT growth of 55.4% shows strong earnings recovery.
- PEG ratio of 0.61 suggests attractive valuation relative to growth.
- FII holdings increased by 0.79% and DII holdings by 0.33%, showing institutional support.
⚠️ Limitation
- High debt-to-equity ratio of 7.09 raises financial risk.
- ROCE and ROE remain weak compared to peers.
- EPS at 1.00 ₹ is low relative to market capitalization.
📉 Company Negative News
- Stock has fallen significantly from its 52-week high of 24.3 ₹ to current levels.
- High leverage continues to weigh on financial stability.
📈 Company Positive News
- Quarterly PAT improved significantly, showing operational recovery.
- Institutional holdings (FII and DII) increased, reflecting renewed confidence.
- 52-week performance up 34.8%, showing investor interest despite risks.
🏭 Industry
- Industry PE at 14.8 suggests sector trades at lower multiples.
- YESBANK trades slightly above industry valuation, supported by recovery momentum but limited by high debt.
🔎 Conclusion
YESBANK shows signs of recovery with strong quarterly PAT growth and institutional support. However, high debt levels and weak efficiency metrics raise caution. Entry is favorable near 18–19 ₹ for speculative investors, but long-term holding carries significant risk. Conservative investors should avoid until leverage reduces and profitability stabilizes further.