YESBANK - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 2.6
| Stock Code | YESBANK | Market Cap | 67,559 Cr. | Current Price | 21.5 ₹ | High / Low | 24.3 ₹ |
| Stock P/E | 21.5 | Book Value | 16.0 ₹ | Dividend Yield | 0.00 % | ROCE | 6.34 % |
| ROE | 5.38 % | Face Value | 2.00 ₹ | DMA 50 | 21.9 ₹ | 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 | 46.4 | MACD | -0.26 | Volume | 10,76,45,965 | Avg Vol 1Wk | 11,99,97,652 |
| Low price | 16.0 ₹ | High price | 24.3 ₹ | PEG Ratio | 0.69 | Debt to equity | 7.09 |
| 52w Index | 66.7 % | Qtr Profit Var | 55.4 % | EPS | 1.00 ₹ | Industry PE | 15.8 |
📊 Analysis: YES Bank trades at a P/E of 21.5, slightly above the industry average of 15.8, suggesting moderate overvaluation. ROE (5.38%) and ROCE (6.34%) are weak, reflecting poor capital efficiency. EPS of ₹1.00 is modest, and dividend yield is 0%, offering no income support. Debt-to-equity is very high at 7.09, raising concerns about leverage and financial stability. Quarterly PAT improved from ₹654 Cr to ₹952 Cr (+55.4%), showing recovery momentum, but sustainability remains uncertain. PEG ratio of 0.69 indicates fair growth-adjusted valuation. Technicals show RSI at 46.4 (neutral) and MACD negative (-0.26), suggesting weak momentum.
💰 Entry Price Zone: Ideal accumulation zone is between ₹17 – ₹19, closer to its 52-week low (₹16), offering margin of safety.
⏳ Exit / Holding Strategy: If already holding, consider exiting on rallies near ₹23 – ₹24 (recent high zone). Long-term holding is not advisable unless ROE/ROCE improve significantly and debt levels reduce. The stock is better suited for speculative short-term trades rather than long-term compounding.
Positive
- 📈 Quarterly PAT growth (+55.4%) shows recovery momentum.
- 🏦 EPS of ₹1.00 provides earnings base.
- ✅ Institutional support with FII (+0.79%) and DII (+0.33%) stake increases.
Limitation
- ⚠️ Weak ROE (5.38%) and ROCE (6.34%).
- 📉 High debt-to-equity (7.09), raising financial risk.
- 🚫 No dividend yield (0%), limiting investor returns.
- 🔻 EPS remains modest relative to valuation.
Company Negative News
- 📉 High leverage with debt-to-equity at 7.09.
- 🚫 Weak technical momentum (MACD negative).
Company Positive News
- ✅ PAT improved from ₹654 Cr to ₹952 Cr.
- 💡 Institutional confidence with FII and DII stake increases.
Industry
- 🏭 Banking industry PE ~15.8, lower than YES Bank’s valuation.
- 🌍 Sector growth driven by credit expansion and digital adoption, but YES Bank lags peers in profitability and capital efficiency.
Conclusion
YES Bank shows signs of recovery with improved PAT and institutional support, but weak ROE/ROCE, high debt, and lack of dividend make it unsuitable for long-term investment. Ideal entry is near ₹17–₹19 for speculative positions. Existing holders should consider exiting near ₹23–₹24 unless fundamentals improve. The stock suits short-term traders but not long-term compounding investors.
Selva, would you like me to extend this into a peer benchmarking overlay (YES Bank vs ICICI Bank, HDFC Bank, Axis Bank, etc.) so you can evaluate sector rotation and margin-of-safety positioning more clearly?