Yes Bank Shares: What Investors Need to Know for the Upcoming Week

Rajesh
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Yes Bank, a private bank in India, has recently caught the attention of market experts and investors due to its base building mode and fund raise announcement. In this article, we will delve into the reasons behind the focus on Yes Bank shares for the upcoming week and analyze the potential outcomes for investors. Please note that the following information is based on expert opinions and the latest developments in the market.

Yes Bank Shares: What Investors Need to Know for the Upcoming Week

Yes Bank Share Price Movement:

Over the past three months, Yes Bank shares have been in a phase of base building after reaching a low point in mid-March 2023. The share price has been fluctuating between ₹14.50 and ₹17 per share. However, after briefly surging to a 52-week high of ₹24.75 in December 2022, the stock experienced a significant sell-off. Nevertheless, the recent announcement by the Yes Bank board to raise ₹2,500 crore through debt securities issuance has garnered attention from experts and observers, including positional investors.

Expert Analysis and Expectations:

Market experts believe that the fund raise announcement by Yes Bank will work in favor of the bank's shares when the market reopens for trading on Monday next week. They anticipate strong resistance for Yes Bank shares in the ₹18 to ₹20 range, and if this hurdle is overcome, the stock may reach a new 52-week high, provided the uptrend continues. However, due to the potential for volatility, experts recommend setting a strict stop loss at ₹13 per share to manage risk effectively.

Target Price for Yes Bank Shares:

Anuj Gupta, Vice President - Research at IIFL Securities, suggests adopting a "buy on dips" strategy for Yes Bank shares. He states that the fund raise announcement is likely to generate positive sentiments, despite the expected volatility. Gupta recommends taking advantage of every dip in the share price, as there is a strong possibility of a rebound. He highlights that the stock has significant support at ₹13 per share. Currently, Yes Bank shares face resistance at ₹18 to ₹20, and a breach of this level could lead to a new 52-week high, potentially reaching ₹26 per share in the short term.

Recent Fund Raise Announcement:

Yes Bank recently informed the Indian stock market about its plan to raise ₹2,500 crore through the issuance of debt securities. The bank's board of directors approved the draft Notice of the Annual General Meeting to be held on August 18, 2023. The funds will be raised in Indian or foreign currency, utilizing instruments such as non-convertible debentures, bonds, and Medium Term Notes (MTN), in accordance with relevant provisions of the Companies Act, 2013, SEBI regulations, and other applicable laws. The approval from shareholders and regulators is necessary for the implementation of this plan.

Yes Bank Q4 Results 2023:

In the fourth quarter of the fiscal year 2022-2023, Yes Bank reported a dip in net profit on a year-on-year basis, declining by approximately 45% from ₹367.46 crore to ₹202.43 crore. However, on a quarter-to-quarter basis, the bank witnessed a substantial rise of around 293% compared to the net profit of ₹51.52 crore in Q3FY23. Yes Bank attributed the decline in net profit to increased provisioning but highlighted that it managed to report profitability for the second consecutive year, despite these challenges.

Regarding total income, Yes Bank demonstrated improvement by reporting a total income of ₹7,298.51 crore in the fourth quarter, compared to ₹5,829.22 crore in the corresponding period of the previous year. For the full fiscal year 2022-2023, Yes Bank recorded a 19.46% rise in total income, with the Q4FY23 total income standing at ₹26,624.08 crore, as opposed to ₹22,285.98 crore in FY22.

Conclusion:

The recent fund raise announcement by Yes Bank and its base building mode have piqued the interest of market experts and investors. The stock's performance in the upcoming week is expected to be influenced by the success of the fund raising initiative. While volatility is anticipated, the potential for a rebound and a breach of the resistance levels could lead to new highs for Yes Bank shares. Investors are advised to exercise caution and consult certified experts before making any investment decisions.

Disclaimer: 

The views and recommendations expressed in this article are those of individual analysts and do not represent the views of tradingtalk.in. It is advisable for investors to seek advice from certified experts before making any investment decisions.

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