Stock to buy or sell: Yes Bank share price jumps 11% on strong Q1 results 2024 buzz. More steam left?

Stock to buy or sell: Yes Bank shares witnessed strong upside during Friday deals last week. Yes, Bank share price opened flat on Friday and remained sideways till 12:15 PM. The stock started gaining momentum at noon and touched an intraday high of ₹27.04 apiece on the NSE ahead of the closing bell. According to stock market experts, a post-Q1FY25 business update by the Yes Bank, the market expects that the private lender's profitability may remain steady. They also believe that the asset quality of Yes Bank may remain healthy in upcoming quarters, which implies a low risk of default or bad loans. They advised Yes Bank shareholders to hold the scrip as it may touch ₹32 apiece level ahead of the Q1 results 2024.

Yes Bank Q1 results 2024 in focus

On why Yes Bank's share price is skyrocketing, Manish Chowdhury, Head of Research at StoxBox, said, “Post the Q1FY25 business update, we believe that the market participants have expressed confidence that Yes Bank's profitability will remain steady in the future. In addition, the asset quality remains healthy, implying a lower risk of defaults and bad loans, leading to benign credit costs and improved financial health. Furthermore, the growth seen in Yes Bank's MSME and corporate loan book indicates an expanding lending business. This will help the bank's NIM to remain steady in the medium term, and we do not see any significant compression in the near term.”

The StoxBox expert said that robust asset quality, low credit costs, and loan book growth support a stable and potentially increasing profitability outlook. These factors have collectively led to increased buying activity, driving up Yes Bank share price.

Yes Bank news

Speaking on the reason for the rise in Yes Bank shares after the announcement of the Q1 results 2024 date, VLA Ambala, a SEBI-registered Research Analyst and Founder of Stock Market Today, said, “Yes Bank has recorded a surge in price after it announced the Q1FY25 results date, and this jump can be credited to several reasons. Banking players have begun declaring their Q1 results, and with HDFC Bank announcing favourable results, the market is expecting positive earnings and even dividends from other banking stocks, especially those with strong fundamentals.”

Yes Bank share news

"Yes Bank's movement on the spot chart suggests the creation of fresh buying opportunities compared to its peers, making its discounted valuation attractive to many. Meanwhile, the technical chart shows a bullish price trend on the weekly and monthly charts, suggesting a potential breakout from its current consolidation phase, offering a low-risk buying opportunity. Hence, those interested can consider buying around ₹24.2, with a target price range of ₹25.40 and ₹32. I recommend a holding period of 1-30 days for this stock and setting a stop loss at ₹23 to limit risks," said VLA Ambala.

Yes Bank shareholding pattern for Q1FY25

Yes Bank has released its shareholding pattern for the April to June 2024 quarter. According to the shareholding pattern of Yes Bank for Q1FY25, major shareholders like Life Insurance Corporation (LIC), Stata Bank of India (SBI), Axis Bank, ICICI Bank, and HDFC Bank have remained steady in Yes Bank in the recently ended quarter.

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