Profit-booking pulls YES Bank shares down 2%

BL Internet Desk April 27 | Updated on April 27, 2018 Published on April 27, 2018

Shares of YES Bank jumped as much as 4.74 per cent to 368.75, their highest since October 1.

Shares of YES Bank plunged as much as 2.1 per cent to Rs 345.10 due to profit-booking by funds and retail investors.

Earlier in the day, the stock jumped as much as 4.71 per cent to 369, its highest since October 17 as the private sector lender has posted better-than-expected rise in Q4 profit at Rs 1,179 crore ($176.50 million).

However, the stock pared its gains and ended the session down by 1.06 per cent at Rs 348.65 on the NSE. On the BSE, the stock closed lower by 1.02 per cent at Rs 348.45.

YES Bank had on Thursday posted a 29 per cent increase in net profit for the fourth quarter ended March 31, 2018, at Rs 1,179.4 crore, but also registered higher provisioning for stressed assets. The net profit for 2017-18 was also robust with a 26.9 per cent growth at ₹4,224.6 crore against ₹3,339.9 crore in 2016-17.

Jefferies has raised the price target to Rs 440 from Rs 415 with 'buy' rating. The brokerage says asset quality has surprised positively; it believes the next catalyst to be the FY18 divergence.

Macquarie has raises the target price to Rs 425 from Rs 410. It says YES Bank is the only corporate lender without any non-performing loan resolution or RBI revised framework baggage, “freeing it to capture market share aggressively”.

Morgan Stanley likes the stock “for good asset quality trends, strong growth, improving liability profile, and inexpensive valuation”. 38 of 47 brokerages have rated the stock “buy” or higher, six ”hold” and three “sell” or lower.

(With inputs from Reuters)

Published on April 27, 2018

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