Whalesbook
Market experts Chandan Taparia of Motilal Oswal and Shrikant Chouhan of Kotak Securities have expressed a positive to bullish view on Yes Bank shares, citing bullish strength and a visible consolidation breakout. Chandan Taparia noted that the stock has support at ₹22 and could see a fresh buying momentum if it crosses and holds above ₹23.50, targeting ₹26. He anticipates a potential 10-12% return in the short term. Shrikant Chouhan suggested buying Yes Bank for a target price of ₹27-28, viewing it as a potential position trade.
The bank's stock has gained recent attention following a significant stake acquisition by Sumitomo Mitsui Banking Corporation. Over the last three months, Yes Bank has outperformed the market, yielding an 18% return.
In its Q2 FY2025-26 financial results, Yes Bank reported an 18.3% year-on-year rise in net profit, reaching ₹654 crore from ₹553 crore in the prior-year period. This growth was primarily fueled by non-core income. The bank's core net interest income saw a 4.6% increase, supported by a 6.4% growth in its loanbook and a 0.10% expansion in its net interest margin.
Impact
This news is likely to positively influence investor sentiment towards Yes Bank. The combination of expert recommendations with specific price targets, strong quarterly financial performance, and strategic foreign investment from Sumitomo Mitsui Banking Corporation indicates potential upward momentum for the stock. Investors will be closely watching the ₹23.50 resistance level for further confirmation of a bullish trend. Rating: 7/10
Difficult Terms:
Consolidation: A period where a stock's price trades within a narrow range, indicating a pause or indecision before a significant move.
Breakout: When a stock's price moves decisively beyond a defined trading range or resistance level, often signaling the start of a new trend.
Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from total revenue.
Non-core income: Revenue generated from activities outside a company's primary business operations.
Net Interest Income (NII): The difference between the interest income a bank generates from its lending activities and the interest it pays out to depositors.
Loanbook: The total value of loans issued by a bank.
Net Interest Margin (NIM): A profitability metric for banks, indicating the difference between interest income earned on loans and interest paid on deposits, relative to average earning assets.