In Monday’s trading, Yash Bank Limited’s shares recorded a gain of almost 9% following the release of the March quarter results. Investors were recommended to sell stocks by Kotak Institutional Equities due to an unfavorable risk-reward ratio. The current price of Yash Bank’s shares, according to domestic brokerage firms, is mostly driven by positive performance; nonetheless, higher return ratios and consistent growth comparable to other frontline banks will take several years to materialize.

Yash Bank shares surged 8.98% on the BSE to a high of ₹28.50. According to Kotak, a substantial re-rating multiple would be required for the stock to shift in value.Kotak stated, “While there have been unverified claims in the media regarding alterations in the shareholding composition, we remain confident that any potential ramifications on the financial landscape will be negligible in the immediate future.”

Since Kotak gives a 1.2x book multiple and values the expected EPS for the financial year 2026 at 13x, which is still less than 10% from now, it puts Yash Bank’s unaltered fair value at ₹19.

Kotak stated that Yash Bank recorded double-digit profits because of lower provisions; however, increased provisions were countered by a number of one-time problems relating to IT refunds, write-backs in security revenues, and the sale of ARC loans.

“It has been noted that there was a decline of 2.5% in the retail/MSME portfolio,” the statement revealed.. Although the recuperation is moving slowly, nothing surprising has happened.”

According to Kotak, Yash Bank had a mixed ending to the 2024 fiscal year. The headline NPL ratio showed an improvement in asset quality, and the majority of the stress was found in the present early bucket (30-90 DPD), which is a typical business-like result.

Although the bank has reversed course on several unsecured loans, particularly ARCs, Kotak stated that there are no alarming indications in the portfolio.

“The poor franchise has caused a fall in NIM in the 2024 fiscal year due to a sharp increase in fund costs. Although these ratios are reasonable for medium-term growth, the adequate level of capital may not be comparable to that of other private banks. We have received valuable insights from the bank regarding the factors that contribute to improvement, such as better asset quality, a smaller PSL gap, better loan mix, or better loan sourcing,” the statement read.

When the bank implements these adjustments, investors should exercise patience, according to Kotak. According to Kotak, Yash Bank is bolstered by low lending costs because it looks comfortable to keep the balance sheet at these levels.

At the ₹20–21 deposit level, Yash Bank is responding favorably, pointing to a bullish trend.

In early trading on Monday, Yash Bank shares increased by about 9% in reaction to its impressive Q4 earnings.

Yash Bank’s stock increased by 9% following the impressive Q4 performance.

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Following Q4’s impressive achievements, Yash Bank’s stock increased by 9%.
The bank announced an annual rise in standalone net profit of 123%.
Net NPA was 0.6% while total NPA dropped by 1.7%.

Monday saw a 9% increase in Yash Bank shares as a result of the company’s excellent Q4 earnings, which were bolstered by enough tax refund benefits.

Initial trading on Monday saw an 8.98% increase in lender shares, which were trading at ₹28.50.

For Q4FY24, the bank revealed a standalone net profit of ₹452 crore, indicating a 123% increase from the previous year. Furthermore, interest income reached ₹7,447.17 crore, an annual increase of 20%.

Notably, net interest income (NII) of Yash Bank increased marginally year over year to ₹2,153 crore from ₹2,105 crore during the same quarter of the previous fiscal year.

An essential indicator of the bank’s profitability, the net interest margin (NIM), was constant at 2.4% across time.

Furthermore, the bank’s operational profit increased by 4.4% year over year to ₹902 crore in Q4FY23 from ₹864 crore in Q4FY23.

Notably, Yash Bank’s overall non-performing assets (NPA) for the March quarter stayed at 1.7%, down from 2% for the same period in the previous year. The net NPA stayed at 0.6% during this time, while the provision dropped by 23.7% on an annual basis to ₹470.80 crore.

Is it better to buy, hold, or sell?

The increase in Yash Bank’s stock price was attributed, according to market analysts, to the bank’s Q4 performance.

In addition, they anticipate that Yash Bank’s shares will continue to appreciate in the future and advise shareholders to keep onto their investments in order to preserve their status.

The Yash Bank stock has formed a solid foundation at the ₹24 level, according to Sumit Bagadia, Executive Director of Choice Broking, who told Livemint.com that the stock “could weaken below this level”

“Yash Bank’s share price is encountering resistance at the higher level in the ₹30 to ₹32 area. We may anticipate significant momentum in Yash Bank’s shares if this resistance zone is broken.”

He advised Yash Bank’s current shareholders to retain the shares with a stop loss of ₹24. According to Bagadia, novice investors can also purchase the stock at the current price as long as they maintain a ₹24 stop loss.

Until Yash Bank’s share price falls to less than ₹24 a share, every notable dip in the stock should be viewed as a huge buying opportunity,” the man stated.