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    Sell YES Bank, target price Rs 10: Emkay Global

    Synopsis

    YES Bank Ltd., incorporated in the year 2003, is a banking company (having a market cap of Rs 33323.02 Crore).

    Yes Bank
    Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 10.5 per cent, DIIs 47.1 per cent and public and others 42.5 per cent.
    Emkay Global has sell call on YES Bank with a target price of Rs 10. The current market price of YES Bank Ltd. is Rs 13.13. Time period given by analyst is one year when YES Bank Ltd. price can reach defined target.

    YES Bank Ltd., incorporated in the year 2003, is a banking company (having a market cap of Rs 33323.02 Crore).

    Financials
    For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 5610.71 Crore, up 16.05 % from last quarter Total Income of Rs 4834.93 Crore and down -8.36 % from last year same quarter Total Income of Rs 6122.62 Crore. The bank reported net profit after tax of Rs 203.76 Crore in latest quarter.

    Investment Rationale
    The brokerage expects the bank’s RoA trajectory to remain sub-par at 0.5-0.8% over FY23-24E vs. management expectation of 1-1.5%. It retains Sell with a TP of Rs10 (0.9x Sep’23E ABV) amid persistent concerns over its asset quality, sub-par return ratios, and unfavorable risk-reward ratio with higher valuations. Although the current management with regulatory/investor support has been able to avert bank failure, we believe that reorienting Yes Bank to a sustainable retail bank will require differentiated private banking management. Key risks to the call: Faster-than-anticipated business scale up and lower-than-expected NPA formation.

    Promoter/FII Holdings
    Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 10.5 per cent, DIIs 47.1 per cent and public and others 42.5 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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