Yes Bank Shares Dip on Q2 Results, But Analysts See Buying Opportunity

Yes Bank Shares Dip on Q2 Results, But Analysts See Buying Opportunity

VoM News Desk | October 23, 2023 | 12:39 PM IST | Breaking News | Follow on Google News

Yes Bank Shares Dip on Q2 Results, But Analysts See Buying Opportunity

Yes Bank Shares Dip on Q2 Results, But Analysts See Buying Opportunity

Following the announcement of Yes Bank’s Q2 results for 2023 over the weekend, the bank’s shares experienced a sell-off in the stock market today. Although Yes Bank’s share price initially opened higher at ₹17.40 apiece, it quickly came under selling pressure and dropped to an intraday low of ₹16.75 per share, representing a 2.50% decline during early morning trading on Monday.

Challenges in Q2 2023

Stock market experts have noted that the market’s reaction to Yes Bank’s Q2 results is due to the bank’s margins and income coming under stress in the July to September 2023 quarter. One key factor contributing to this stress is the rise in the cost of funding. It’s important to highlight that this increase in funding costs has affected all Indian banks, and Yes Bank is not an exception.

Despite the dip in Yes Bank’s share price, experts emphasize that the bank’s fundamentals have been steadily improving quarter after quarter, particularly since State Bank of India (SBI) took over the management of the bank when it was facing a crisis. This long-term growth and recovery trajectory is seen as a positive sign.

Analysts’ Perspective

Arun Kejriwal, Founder at Kejriwal Research and Investment Services, acknowledges that Yes Bank shares are facing selling pressure primarily due to the Q2 results. However, he also mentions that the broader Indian stock market is under stress due to geopolitical tensions in the Middle East, which may have contributed to the decline in Yes Bank’s share price.

Sumeet Bagadia, Executive Director at Choice Broking, provides a positive outlook, suggesting that Yes Bank shares have strong support at ₹16 levels. He recommends that fresh investors consider buying Yes Bank shares in the range of ₹16.50 to ₹17.00 for immediate targets of ₹18 and ₹20 per share. He further advises those already holding Yes Bank shares to consider adding more at these levels, with a stop loss at ₹16 apiece, aiming for near-term targets of ₹18 and ₹20.

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VoM News Desk

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