Let’s check the details of two major factors affecting Yes Bank share price below.

YES, Bank shares surged by over 6.5% to Rs 26.60 on Thursday due to positive news from Moody’s and potential stake interest. Interest in YES Bank’s stake boosts its shares, which have risen by 54.7% in the past year and 17.5% this year.

Yes Bank share price as of 13th/July/2024 at 3:30 pm IST

Price: ₹25.63 INR

Gain/Loss: −₹0.20(0.77%)↓

Open: ₹25.89

VWAP: ₹25.81

Market cap: ₹80,313.30 Cr

Free Float Market Cap: ₹46,581.71 Cr

Price Band: ₹20

Daily Volatility: ₹2.92

Annualized Volatility: ₹55.79

Face Value: ₹2

P/E ratio: 58.25

P/B: 1.76

D/E: 1.91

Peg. Ratio: 0.77

CDP score: A-

High: ₹26.24

Low: ₹25.56

52-week high: ₹32.85

52-week low: ₹15.70

Highest in July/2024: ₹26.64 on 5th/July/2024

Lowest in July/2024: ₹23.85 on 2nd/July/2024

Highest(2024) Yes Bank share price: ₹31.40 on 9th/Feb/2024

Lowest(2024): ₹20.95 on 13th/Mar/2024

Traded Volume: 2,248.71 Lakhs

Traded Value: 580.39 Cr

Moody’s Positive Outlook Affect

Moody’s raised YES Bank’s outlook from stable to positive. Therefore, confirming its BA3 ratings for both foreign and local currencies. Further, Moody expects step-by-step betterment in profitability over 12-18 months. Henceforth, it cited increased depositor base and asset quality.

Interest in Foreign Corporate

Investors’ confidence was boosted when Mitsubishi UFJ Financial Group Incorporated(a Japanese firm), Sumitomo Mitsui Financial Group Incorporated, and First Abu Dhabi Bank(51%) proposed buying Yes Bank’s stake.

Factors positively affecting Yes Bank share price

• YES Bank reported a year-on-year increase in advances by 12.09%. Thus, surpassing its five-year compounded annual growth rate(CAGR) of 5.85%.
• Additionally, it achieved an annual revenue growth of 22.87%. Hence, it outperformed its three-year CAGR of 11.85%.
• A weekly MACD crossover occurred on 12^th/July/2024. It led to an average price gain of 15.17% within seven weeks.
• Furthermore, Mutual funds have increased their shareholding in the past month.
• Yes Bank share price has demonstrated the company’s robust profitability, including improving Return on Capital Employed(RoCE) over the past two years and increasing profit margins quarter-over-quarter and year-over-year.
• The bank has consistently outperformed its industry peers, supported by high earnings per share(EPS) growth, increasing revenue and profits for multiple consecutive quarters.
• Foreign institutional investors(FIIs/FPIs) and institutions have increased their shareholding.

Factors negatively affecting Yes Bank share price:

• Despite profitability, YES Bank has not paid out dividends, thus, affecting investor returns.
• The Bank’s low-interest coverage ratio and return on equity(RoE) of only 2.81%(last 3+ years) indicate lower profitability.
• YES Bank faces contingent liabilities of ₹6,78,410 Cr. Hence, it showed an increasing trend in risky non-core income.
• Stock is traded at a higher price-to-earnings(PE) ratio than its industry. Therefore, it indicated overvaluation of Yes Bank share price.
• Poor sales growth of -1.40% over the past five years has raised concerns about the sustainability of its earnings.

Financial Results(Amount in Cr.)
Quarter Ended	Total Income	Net Profit/Loss	Earnings Per Share
31-Mar-24	9,015.77	451.89	0.16
31-Dec-23	8,179.45	231.46	0.08
30-Sep-23	7,920.68	225.21	0.08
30-Jun-23	7,584.34	342.52	0.12
31-Mar-23	7,298.51	202.43	0.07

The reality of Stake Sale

YES Bank has vested its shares with several Indian companies including, SBI holding a 24% stake. Hence, SBI navigates potential delays in stake sales and Yes Bank share price volatility amid leadership changes. Therefore, looking at these events and the denial of RBI to sell YES Bank’s stake, the increase in Yes Bank’s share price could be temporary. For all finance news and stories please like and subscribe to Financereview.Org