Yes Bank shares soared as much as 9% on Monday following its strong Q4 results, supported by substantial gains from tax refunds.
Shares of the lender surged 8.98% to reach Rs 28.50 apiece at the opening of Monday’s trading session.
The bank reported a standalone net profit of Rs 452 crore for Q4FY24, marking a 123% increase year-on-year. Additionally, interest income surged by 20% YoY to Rs 7,447.17 crore.
It may be noted that Yes Bank’s net interest income (NII) saw a modest 2% year-on-year increase, rising to Rs 2,153 crore from Rs 2,105 crore in the corresponding quarter of the previous fiscal year.
The net interest margin (NIM), a crucial profitability measure for the bank, remained unchanged sequentially at 2.4%.
Additionally, the bank’s operating profit experienced a 4.4% year-on-year growth, reaching Rs 902 crore in Q4FY23, compared to Rs 864 crore in Q4FY23.
It is worth noting that Yes Bank’s gross non-performing asset (NPA) stood at 1.7% during the March quarter, down from 2% in the corresponding quarter last year. Meanwhile, the net NPA for the quarter stood at 0.6% and the provisions for the quarter also fell 23.7% year-on-year to Rs 470.80 crore.
Should you buy, hold or sell?
Market analysts applauded Yes Bank’s Q4 results, saying that it has contributed to the rise in its stock price.
Furthermore, they anticipate continued appreciation in Yes Bank shares going forward, advising shareholders to maintain their positions.
Sumeet Bagadia, Executive Director at Choice Broking, told livemint.com that the shares of Yes Bank have made a strong base at Rs 24 level, adding that the stock “may become weak on breaching below this level”.
“On the upper side, Yes Bank share price is facing resistance at Rs 30 to Rs 32 zone. On breaching this resistance zone, we can expect strong upside movement in Yes Bank shares,” he added.
He suggested existing shareholders of Yes Bank can hold on to the stock, maintaining a stop loss of Rs 24. Bagadia added that new investors can also buy the stock at current levels, keeping a stop loss at Rs 24.
Every big dip in the stock should be considered as a big buying opportunity till Yes Bank share price is above Rs 24 apiece level,” he added.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
