Last week, there was a lot of selling pressure on the Yes Bank share price ahead of the presentation of the Q2 results 2024 on Saturday. Yes Bank’s share price plummeted from about ₹21.50 per share on the NSE to ₹19.50 per share during the last five sessions, resulting in a weekly loss of more than 9%. Stock market analysts predict that Yes Bank’s 2024 Q2 results will be flat. They stated that a slight increase in slippage is anticipated.
According to experts, Yes Bank’s sluggish deposit growth in Q2FY25 may result in slightly lower growth reports. They insisted, however, that Yes Bank shares have already discounted the flat Q2 results 2024 and that a trend reversal might occur the next week, should the existing support of Yes Bank shares, which is set at ₹16.90, hold firm in the initial sessions.
Manish Chowdhury, Head of Research at StoxBox, about the company’s Q2 results for 2024 stated, “YES Bank is expected to report a steady performance for the quarter ending in September. During this period, the Bank may experience slightly lower growth than anticipated, accompanied by moderate deposit growth. We expect earnings to remain flat QoQ due to stable profit margins, while slippages will likely stay steady but at elevated levels. We foresee stable growth in NII, supported by average loan growth across the industry. Although deposit growth is projected to remain robust, the Bank may encounter some volatility due to the timing of income recognition.”
“Additionally, the earnings impact will be difficult to forecast, given the nature of the provisioning policy. This quarter, we anticipate steady progress in recovering loans and upgrades as security receipts mature. Given these factors, we believe that YES Bank is positioned to deliver steady performance this quarter,” the StoxBox expert said.
Highlighting the outcome from Yes Bank’s provisional business update, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Yes Bank in its provisional business update reported a healthy credit growth of 3% QOQ and ~13% YoY, while deposit mobilisation pace was strong as it grew by 4.6% QOQ/18.3% YoY.”
Speaking on Yes Bank’s Q2 results preview, Mahesh M Ojha said, “Margins should see a contraction, while PPOP/average assets are likely to remain broadly stable sequentially. Credit costs should remain stable, while ROAA may see a decline in the quarter due to the lower recovery from SRs. Asset quality performance is expected to improve sequentially with a decline in net delinquencies.”
Brokerages like Kotak Institutional Equities, Nomura, and JM Financial, however, anticipate a strong set of results in Q2FY25. According to these brokerages, Yes Bank’s Q2 results should show a notable increase today, with net profit possibly jumping by up to 145% and net interest income (NII) rising by up to 23% year over year.
Share price target
Speaking on Yes Bank’s share price outlook, Chandrakant Maske, AVP — of technical and derivative Research at Spark Capital, said, “Yes Bank shares have a strong base at ₹16.90 per share mark. The stock may witness some selling pressure in the first few sessions; however, if Yes Bank’s share price manages to sustain above this support, we may expect a trend reversal in Yes Bank shares. So, those with Yes Bank shares in the portfolio are advised to hold the scrip, maintaining a strict stop loss at ₹16.90 apiece. The stock may soon touch ₹23 and ₹24.80 apiece.”
On the suggestion to fresh investors, Chandrakant Maske of Spark Capital said, “Fresh investors having high-risk appetite may also buy Yes Bank shares, maintaining a buy-on-dips strategy until the stock sustains above ₹16.90. Fresh investors are also advised to hold the scrip, maintaining a strict stop loss at ₹16.920 for the short-term targets of ₹23 and ₹24.80 by the end of December 2024.”
