Yes Bank Net Profit Up 360% But Brokerages Say Sell

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Yes Bank Net Profit Up 360% But Brokerages Say Sell

By Aditya Raghunath

Investing.com --  Yes Bank Ltd (NS: YESB ) reported its numbers for Q1 FY22. Its net profit increased by a whopping 360% to Rs 207 crore for the June 2021 quarter, the highest it has risen since December 2018. Its share price rose 2.3% to close at Rs 13.35.

However, brokerages are advising investors to stay away from the stock. Elara Capital has a target of Rs 6 for the stock. It said, “While there is significant improvement in earnings in Q1, profitability remains low with return on assets of 0.3%, and stress loans remain uncomfortably high at 29%.”

 Edelweiss said that while the numbers are good, the situation at the bank is not stable. “The bank’s identified pool of stressed advances of over Rs 4,500 crore forms over 20% of its book. While slippages were lower sequentially, the quarter saw a sharp rise in restructured book to Rs 5,000 crore, reflecting sustained asset quality pressure points,” it said.

Yes Bank’s gross non-performing assets (GNPAs) rose to 15.6% for the June 2021 quarter from 15.41% in the March 2021 quarter.

Kotak Securities has a sell rating on Yes Bank with a target of Rs 11. It said, “Earnings are far too volatile given the impact that these slippages have on NII (net interest income) and provisions. The bank’s capital position is above regulatory requirements but the flexibility to make higher provisions is quite limited.”

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  • Ganesh Dixit @Ganesh Dixit
    Retailer are holding  36 % stakes in yes bank, Now operator wanted to come but retailers not selling his holding. Therefore stock price goes down so that panic will create and retailer sell his holding and operator can get chance to come.
    Like 1
  • Mihir Shah @Mihir Shah
    This analyst are the biggest pimps
    Like 6
  • Habeeb Suttu @Habeeb Suttu
    LET'S ALL BUY... AND ******THE MARKET
    Like 7
  • Lionel LeBlond @Lionel LeBlond
    when the analysts say sell. stocks always go up. when they say it goes down.
    Like 4
    • Lionel LeBlond @Lionel LeBlond
      *buy
      Like 1
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  • Samir Sam @Samir Sam
    those who are saying to sell actually eyeing this bank to use as their success story...kotak since long targetig yes bank to acquire i guess
    Like 7
  • Dev Dutt @Dev Dutt
    Saying No to Yes bank, what a world we live in :D
    Like 4
  • Nishant Soni @Nishant Soni
    Yes, it still has some bad assets; but it is improving every quarter. There are no operators behind this poor company now. Zomato and Tata Motors making so much if losses and still analysts can suggest to Buy.This is conspiracy!!!
    Like 12
    • Avi Nash @Avi Nash
      With the leadership at Yes Bank, im hopful that the present management will make a good turn around for thr bank in a couple of years
      Like 2
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  • The hellfire club @The hellfire club
    When everyone will sell then stock will move to 20 with operator game😁
    Like 1
  • Rahul Kachroo @Rahul Kachroo
    I dont know if brokarages think we are stupid and ignorent. Evenyone know the bad situation of Yes bank and hence rhe stock is at Rs 13 or so down from its life tome high of 390. Anyone buying Yes bank stock knows that it could be worthless but aftert the funds infusion by so many banks it is very unlikely that is going to happen. I dont have the stock but this article is more worthless that the yes bank stock.
    Like 10
  • ANIL PADHI @ANIL PADHI
    Fully bullish on yesbank 1st target 16
    Like 11
  • nitesh singh @nitesh singh
    They are correct ! Sell
    Like 0
  • Santosh Jayaswal @Santosh Jayaswal
    They are manupulating us, as retail investors are scared. So don’t sell any single share.
    Like 12
    • Naveen Kumar @Naveen Kumar
      3 saal nhi chla..ab agle 3 saal it will run
      Like 1
    • Nishant Soni @Nishant Soni
      Loss making companies like Zomato and Tata Motors making 52Week high every quarter, why a stock which is making good improvement should be sold?
      Like 6
    • saurabh dwivedi @saurabh dwivedi
      agle 3 saal mai 45+cross karega
      Like 0
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  • Arjun Singh @Arjun Singh
    I think they are right
    Like 1
  • AS Realty @AS Realty
    Look whos talking.. Elara capital is the one of the recent fpi involved in adani scam and its account was frozen by sebi !
    Like 12
  • Ajay Uppal @Ajay Uppal
    Hahaha, Everyone wants to buy, so they are giving SELL rating. After another quarter, all these brokerages would give a "BUY" rating.
    Like 19

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