Future of the Yes Bank after the stock split?

Yes Bank  stock split was announced when the share price was at Rs. 1620 and the record date was far away. 

What has changed for this stock? Only a few minor things have changed.

• The stock market has rallied a lot this year, giving returns of more than 20% with no visible change in earnings. Yes Bank, similarly has rallied from Rs. 1140 to Rs. 1860, when the stock split happened and the stock price became Rs. 375.

• Though the results for Yes Bank have been good and expanding in recent quarters, the recent GDP number of 5.7% has not gone down well with the investors. This is the lowest in the last 3 years.

• Now the Indian Govt is thinking of an economic stimulus - meaning increased public spending which might result in the fiscal deficit going beyond the targeted 3.2%. Which means, bond prices will fall and yields will rise. Rupee ends near 3- month low; bond yield 4-month high on worries of widening fiscal deficit
• Though Yes Bank has escaped from the NPA problem because of low corporate lending book, it has a large treasury portfolio which will be affected if the bond prices fall. Hence the stock corrected a little more than other banks and financial institutions on Friday.
• However, in the long run and over a time frame of around 12 months, this stock can give good returns and out perform even the indices. Also, analysts have advised to stay invested in this stock.
• YES Bank@record high; 15 brokerages upgraded target price post Q1 results
• Stay invested in Yes Bank: Vijay Chopra
• Hold Yes Bank, says Rajat Bose
• Buy Yes Bank, Titan Company; Motherson Sumi likely to test Rs 420: Ashwani Gujral

Now, as a matter of personal policy, I don’t recommend buy/sell of stocks as I don’t want to be responsible for your losses or lost opportunities. So invest as per your financial capabilities and time frame.

Data/image credits: moneycontrol, livemint.