YESBANK - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.2

📊 YESBANK shows weak fundamentals with modest ROCE (6.34%) and ROE (5.38%), alongside high debt-to-equity (7.28), which adds financial risk. Technically, the stock is trading close to its 50 DMA (22.1 ₹) and 200 DMA (21.0 ₹), suggesting consolidation. RSI at 37.4 indicates oversold conditions, which may provide a short-term bounce. Valuation is stretched with a P/E of 24.3 compared to industry average of 14.7, though PEG ratio of 0.78 suggests some growth potential. Institutional activity is mixed, with FII holdings rising sharply (+20%) but DII holdings falling (-19.5%).

✅ Optimal Entry Price: 21.0–21.5 ₹ (near 200 DMA support)

🚪 Exit Strategy (if already holding): Consider exit near 23.5–24.0 ₹ (resistance zone), or if RSI rises above 55.

Positive

• 📈 FII holding increased (+20%), showing strong foreign investor confidence.
• 💹 Quarterly PAT growth (+18.3%) highlights earnings improvement despite sequential decline.
• 📊 PEG ratio (0.78) indicates reasonable growth potential relative to valuation.
• 📉 RSI at 37.4 suggests oversold conditions, offering tactical bounce opportunity.

Limitation

• ⚠️ High debt-to-equity (7.28) adds significant financial risk.
• 📉 P/E (24.3) vs industry average (14.7) indicates overvaluation.
• 📊 Low ROCE (6.34%) and ROE (5.38%) reflect weak efficiency.
• 📉 52w Index at 68.6% shows moderate underperformance compared to broader market.

Company Negative News

• 📉 DII holding decreased (-19.5%), reflecting weaker domestic institutional support.
• 📉 Sequential PAT decline from 801 Cr. to 654 Cr. raises earnings concerns.

Company Positive News

• 📈 FII holding increased (+20%), showing strong foreign investor confidence.
• 📊 Quarterly PAT growth (+18.3%) highlights operational improvement.

Industry

• 🏭 Industry P/E at 14.7 is lower, suggesting peers may be more attractively valued.
• 📊 Banking sector outlook remains steady, driven by credit growth and digital adoption, but risks persist due to asset quality concerns.

Conclusion

⚖️ YESBANK is a speculative swing trade candidate. Oversold RSI and strong FII inflows provide tactical opportunity, but high debt and weak efficiency metrics limit upside. Entry near 21.0–21.5 ₹ offers margin of safety, while exit near 23.5–24.0 ₹ is prudent. Strict stop-loss discipline is essential due to volatility and sector risks.

Would you like me to extend this into a peer benchmarking overlay so you can compare YESBANK against other private sector banks like ICICI, Axis, and HDFC for relative strength and valuation positioning?