YES BANK is one of the fastest growing Banks in the Private Banking Space and exhibits a judicious mix of aggression and discretion in its growth strategy. It has, in the ongoing market mayhem held its own except for the last couple of trading sessions where it has seen a substantial downward bias. Nevertheless at its Current Market Price (CMP) of Rs 263 (52 wk high 382, 52 week low 233) it is available at Price to Book of 2.4 which is roughly a little dearer than Axis Bank but a lot cheaper than Indusind Bank.
However where YES BANK stands out are its consistently outstanding results in the past many Quarters. Its Q1 FY11-12 have been particularly good with a strong growth in Loan Book; a more than 35% yoy growth in its Net Profit as well as NIIs. NIMs have been steady at around 3% despite the hard Interest rate environ. More importantly it has one of the lowest net as well as gross NPAs in the entire Private Banking Space. So the pedigree as well as corporate performance of the Scrip is unquestionably excellent.
Now coming to the Market performance of the scrip its 50 DMA is at 307 and 200 DMA at 299. As I had pointed out earlier, the scrip had held 300 levels even in the negative Market conditions but in the last two sessions has seen a sharp correction alongwith other Banking Scrips. Under normal circumstances it would have been a screaming buy at CMP 263 but considering the likelihood of further downside in the current environ it would be an excellent idea to start accumulating from 250 levels or thereabouts and an upward turn in the Markets would see sharp upsides.
Hence, YES BANK remains a strong buy even at these levels but being abundantly cautious in the present market conditions, can be bought in part quantities around levels of 250 and lower, by the long term investor.
However where YES BANK stands out are its consistently outstanding results in the past many Quarters. Its Q1 FY11-12 have been particularly good with a strong growth in Loan Book; a more than 35% yoy growth in its Net Profit as well as NIIs. NIMs have been steady at around 3% despite the hard Interest rate environ. More importantly it has one of the lowest net as well as gross NPAs in the entire Private Banking Space. So the pedigree as well as corporate performance of the Scrip is unquestionably excellent.
Now coming to the Market performance of the scrip its 50 DMA is at 307 and 200 DMA at 299. As I had pointed out earlier, the scrip had held 300 levels even in the negative Market conditions but in the last two sessions has seen a sharp correction alongwith other Banking Scrips. Under normal circumstances it would have been a screaming buy at CMP 263 but considering the likelihood of further downside in the current environ it would be an excellent idea to start accumulating from 250 levels or thereabouts and an upward turn in the Markets would see sharp upsides.
Hence, YES BANK remains a strong buy even at these levels but being abundantly cautious in the present market conditions, can be bought in part quantities around levels of 250 and lower, by the long term investor.
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