Mehabe score: 2 G Factor: 4 Piotski Score: 4 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 4.
Description
Yes Bank Limited is a private sector bank. The Bank is engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management.#
Main Points
Ratios
Capital Adequacy Ratio – 19.6%
Net Interest Margin – 3.4%
Gross NPA – 15.4%
Net NPA – 4%
CASA Ratio – 26%Site:YESBANKMain Symbol:YESBANK
Stock trades at 13.0, below its 50dma 13.62 and below its 200dma 17.21. The stock remains bearish on technicals
The 52 week high is at 20.83 and the 52week low is at 11.10
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.17% over past five years.
– has a low return on equity of -25.19% for last 3 years.
-Contingent liabilities of Rs.463326.34 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.3886.25 Cr.
Competition
– The industry trades at a mean P/E of 19.0x. Kotak Mah. Bank trades at the industry’s max P/E of 32.96x. YESBANK trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 6.0. YESBANK has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is -4.2%. The max 1- month return was given by ICICI Bank: a return of 5.34 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 4524.0 cr compared to Rs 5486.0 cr for period ended Jun 2020, a fall of 17.5%
Operating Profits reported at Rs 2215.0 cr for period ended Jun 2021 vis-vis 2496.0 for period ended Jun 2020 .
Operating Margins expanded 346.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.08 compared to Rs -1.51 for previous quarter ended Mar 2021 and Rs 0.03 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19077.0 cr for period ended TTM vis-vis sales of Rs 20039.0 cr for the period ended Mar 2021, a fall of 5.0%. The 3 year sales cagr stood at -13.6%.
Operating margins shrank to -8424.0% for period ended TTM vis-vis -8198.0% for period ended Mar 2021, contraction of 22600.0 bps.
Net Profit reported at Rs -3319.0 cr for period ended TTM vis-vis sales of Rs -3489.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 50124.0 cr for period ended Mar 2021 vis-vis Rs -57721.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -16.0% compared to -25.0% over the last 3 Years. – The stock has given a return of 9% on a 1 Year basis vis-vis a return of -67% over the last 3 Years. – The compounded sales growth on a TTM bassis is -20% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is 85% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Jun 2021. The Jun 2021 fii holding stood at 10.45% vis-vis 13.77% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 42.45% vis-vis 39.52% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.17% over past five years.
– has a low return on equity of -25.19% for last 3 years.
-Contingent liabilities of Rs.463326.34 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.3886.25 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 13.62 and is trading at 13.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
