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You are here : IndiaNotes >> Research & Analysis >> Companies >> YES Bank Ltd. >> Research

Yes Bank: Valuation low; Upside 30%

LKP Securities | 12 Feb, 2018  | Follow Author | Add to my Favourites 
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Yes Bank remains one of our best bet in the sector, we recommend a BUY rating on the stock with the TP of Rs 424. IT  is likely to be one the key beneficiaries of economic revival.


We anticipate strong asset growth going forward – advances to grow at 30% CAGR over the next 2 yrs. Progress on retail assets/liabilities  of the bank  is  also happening at much faster  pace.


Retail  piece  is  likely  to  make  the  balance  sheet  and  earnings  of  the  bank more granular, stable and less volatile leading to improvement in the valuation multiples.


Build-up of retail liabilities would improve its CASA/fees/retail loans generation capacity in a big way.  In addition  to this,  asset  quality  stress on bank’s book  is relatively less as compared to peer banks as reflected in Q3FY18 results.


 Higher growth than the industry, de-risking  the  balance-sheet  with  more  build-up  of  retail  assets/liabilities,  relatively  less asset quality stress,  considering all these positives, we believe the bank is likely to trade at higher multiples. BUY with the TP of Rs 424, upside of 30%.


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About LKP Securities

What started as one of India’s first securities brokerage houses in 1948 is today one of the country’s largest multi dimensional financial services group. LKP Securities is a Non Banking Finance Company (NBFC) registered with Reserve Bank of India & a listed public limited company having a networth of Rs.142 crores as on FY10. They are India's first financial group to be awarded the prestigious ISO 9002 certified KPMG Quality Registrar, USA, for certain businesses.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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