Motilal Oswal is bullish on Yes Bank has recommended buy rating on the stock with a target price of Rs 2110 in its research report dated April 19, 2017.
Motilal Oswal's report on Yes Bank
Yes Bank’s (YES) NII grew 32% YoY (+10% QoQ) to INR 16.4b, helped by 20bp YoY NIM improvement (to 3.6%) and customer assets growth of 36% YoY (+15% QoQ). Strong NII and beat on other income (27% beat; +57% YoY) drove PPoP outperformance (+38% YoY; 14% beat). However, significantly higher provisioning led to in line PAT at INR 9.1b (30% YoY).
The bank has best-inclass return ratio of with RoA/RoE of 1.8%/19%+. The bank is adequately capitalized for the next stage of growth (CET1 11.4%). Reiterate Buy with a target price of INR 2,110 (3.3x FY19) – based on residual income model.
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