It is of the view that earnings will likely be very volatile in the medium term. Fundraising delay raises concern on near-to-medium-term prospects.
Private sector lender YES Bank share price was down over 10 percent intraday on January 14 as Kotak Institutional Equities maintained its sell call on the stock and cut its target to Rs 40 from Rs 55 per share.
The firm is of the view that there is no strong visibility of 15 percent RoE or 1-1.2 percent RoA in the medium term. It is of the view that earnings will likely be volatile in the medium term. Fundraising delay raises concern on near-to-medium-term prospects.
Also, the share price took a beating after the company's independent director Uttam Prakash Agarwal submitted his resignation. Agarwal resigned citing "serious concerns" on the state of affairs of the private sector lender and deteriorating practices.
Meanwhile, the company's board on January 10, approved raising Rs 10,000 crore fresh capital via a mix of debt and equity.
Morgan Stanley has maintained underweight call on the stock with a target at Rs 25 per share. According to Morgan Stanley, the uncertainty around the quantum and pricing of capital raising continues. The elevated asset quality stress will weigh on the stock price, it added.The stock price has seen a massive fall in the last 9 months tanking over 85 percent. At 13:34 hrs Yes Bank was quoting at Rs 37.65, down Rs 4.45, or 10.57 percent. It has touched an intraday high of Rs 41.75 and an intraday low of Rs 36.55.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.