Moneycontrol Be a Pro
Get App
Last Updated : Jul 18, 2019 03:59 PM IST | Source: Moneycontrol.com

Hold YES Bank; target of Rs 101: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on YES Bank with a target price of Rs 101 in its research report dated July 17, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on YES Bank


Yes Bank recognized Rs62.3bn of slippages with large part coming from the watchlist and partly from BB & below book (non watchlist) impacting overall asset quality sharply. The bank also saw its BB & below book loans assets increase on net basis to 9.4% from 8.3% in Q4FY19 which puts asset quality under high risk as these are extremely lumpy exposures. On our deep dive we believe only certain part of exposure can be resolved quickly, while large part of exposure slipping into NPAs remains a high chance which we have factored in the same over FY20 & FY21. Although we take comfort from imminent capital raise (we build-in Rs30bn in near term) & operating profit would help mitigate large provisioning requirement and should not see capital deterioration.


Outlook


We upgrade to HOLD (from REDUCE) with revised TP of Rs101 (from Rs190) based on 1.0x (from 1.5x) Mar-21 ABV.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jul 18, 2019 03:59 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant