Multibagger stock for 2023: Can Yes Bank shares double your money? (2024)

According to stock market experts, much will depend upon the Q3FY23 results of Yes Bank. They said that the lender is among those few banks that is still persisting with provisioning. In Q2FY23, the private lender had raised its provisioning in Q2FY23. As per the Q2FY23 results of Yes Bank, provisioning for Q2FY23 stood at ₹583 crore against ₹377 crore in Q2FY22, near 54.40 per cent higher on YoY basis.

Experts added that Yes Bank might have done that keeping three year lock-in of big investors like Axis Bank, IDFC Bank, HDFC Bank, Kotak Mahindra Bank, etc. who bought stake in the bank in March 2020.

So, in Q3FY23, Yes Bank is expected to cut down its provisioning like any other banks. In that case, bank's margins may improve drastically and it may bring Yes Bank in profit. If it happens, then in that case, experts believe that Yes Bank share price may ascend to the tune of ₹48 to ₹50 in next 6-9 months.

Major trigger for Yes Bank shares

Speaking on the major fundamental trigger that may drive Yes Bank share price in 2023, Ravi Singhal, CEO at GCL Securities said, "Much will depend upon the Q3FY23 results of Yes Bank. If the private lender manages to give attractive numbers like other banks, then valuations of Yes Bank shares are expected to become highly attractive."

Ravi Singhal of GCL Securities said that Yes Bank is still following provisioning post-Covid spread, and this provisioning is also expected to go down like any other bank citing, "A better quarterly result for October to December 2022 period may lead to rise in Yes Bank share price valuations and in that case private banks holding Yes Bank shares may not go for profit-booking as they have been assigned the responsibility of bringing Yes Bank amongst a profit making bank. A better quarterly result of Yes Bank is expected to create a new supply zone of ₹40 to ₹45 for institutional and retail investors."

Ravi Singhal of GCL Securities said that in case of strong Q3Fy23 results, big investors like IDFC First Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, etc. who bought shares in Yes Bank in March 2020 may continue to hold the stock after the three-year lock-in that ends in March 2023.

Yes Bank share price target 2023

Expecting Yes Bank share price to go up to ₹50 apiece levels in next 6-9 months, Sumeet Bagadia, Executive Director at Choice Broking said, "Yes Bank shares have given two years sideways breakout at ₹18 and it is looking in uptrend in near term. One an buy the stock at current levels for immediate target of ₹24 maintaining stop loss at ₹17 apiece levels."

On suggestion to stock market investors who believe in 'buy, hold and forget' strategy, Sumeet Bagadia said, "After breaching its immediate hurdle, the stock is expected to go up to ₹28 and ₹32 apiece. However, once it breaches these two major hurdle, we can expect Yes Bank share price to ascend up to ₹48 to ₹50 apiece levels in next 6-9 months."

Yes Bank Q2 results

In July to September 2022 quarter, Yes Bank has reported 32.20 per cent dip in net profit on Year-on-Year or YoY-basis, despite logging 31.7 per cent rise in net interest income (NIM). The private lender had claimed at that time that the dip in net profit of the bank is due to the rise in provisioning. As per the unaudited results of Yes Bank available on BSE website, Yes Bank's provisioning for Q2FY23 stood at ₹583 crore against ₹377 crore in Q2FY22, near 54.40 per cent higher on YoY basis. However, Yes Bank's provisioning in Q1FY22 stood at ₹175 crore, which means the private lender raised its provisioning by 233.60 per cent on QoQ-basis.

Yes Bank JC Flowers ARC deal

In one of its recent exchange communication, Yes Bank informed Indian bourses about the sale of NPA to JC Flowers ARC citing, "Pursuant to the earlier decision of the Bank to declare JC Flowers Asset Reconstruction Private Limited (“JC Flowers ARC") as the winner of the Swiss Challenge process, the Bank has now concluded assignment of identified stressed loan portfolio of the Bank aggregating to up to ₹48,000 Crores as on March 31, 2022 under 15:85 structure, after adjusting recoveries between 1st April 2022 to 30th November 2022."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 27 Dec 2022, 11:10 AM IST