10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Tuesday, April 7, 2009

Yes Bank Ltd:-Say yes to Yes Bank

Scripscan:Yes Bank Ltd
Traded in:Nse-bse

Story:Yes Bank is a private sector bankfocused heavily on corporate banking. The bank, which came out with its initial public offer (IPO) in ’05, is in a high growth phase.Its balance sheet size has recorded a compound annual growth rate (CAGR) of more than 130% in the past three years. The bank is expanding the network of its retail branches to tap cheaper current account and savings account (CASA) deposits and also plans to enter other lines of businesses. Investors can consider exposure in the stock with a two-year horizon.

BUSINESS: Yes Bank was set up in ’04 with an emphasis on corporate and wholesale banking. It focuses on sectors such as agri-business, infrastructure management, life sciences, healthcare, technology, telecom, commodities and energy. Corporate and institutional banking is its mainstay.Yes Bank provides financial and risk management solutions to corporates, MNCs, central and state governments; advisory services for mergers & acquisitions, divestitures private equity, foreign exchange and derivatives solutions.The bank has recently increased its focus on retail banking. Its retail branch network has expanded from seven banks two years ago to 67 by the end of March’08.The bank plans to enter retail and institutional broking as well. Retail broking will be complementary to its initiatives in retail banking.By FY10, the bank also plans to foray into fund management.

FINANCIALS:Yes Bank’s net profit more than doubled in FY08, driven by rising net interest margin (NIM) and expanding balance sheet size. Its NIM swelled by 44 basis points and stood at 2.74% for FY08, on account of higher retail banking activity. The bank’s strategy is to increase its number of retail branches to 250 by FY10, thereby increasing access to CASA deposits. These are a cheaper form of funding and help to increase the NIM.Currently, a very small portion of the bank’s deposits are of CASA type. At the end of FY08, CASA deposits accounted for 8.5% of its total deposits, compared to about 40% for most other banks. The management had earlier indicated that it is targeting CASA of 25% and expects to improve NIM to 3.75% by fy10.The bank’s balance sheet size increased by more than half to nearly Rs 17,000 crore as on March ’08. Its credit-deposit ratio fell from 76.5% in FY07 to 71% in FY08. The bank’s capital adequacy ratio (CAR) stands at 13.6%, while its non-performing assets (NPAs) are negligible. This indicates the operational efficiency of the bank.

Conclusion:Being a relatively new player in the business, Yes Bank is on a much faster growth trajectory than its peers. It has been enhancing its presence in the retail banking space. Given this, Yes Bank’s earnings per share (EPS) is expected to witness a CAGR of 35% in the next two years. Such high growth rates make the stock trade at a PEG (ratio of P/E to growth in EPS) of less than 1. This shows that the stock is trading at a discount to its growth potential, making it an attractive buy at current levels.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner