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Is Yes Bank Share Worth Buying?

According to the news of the National Stock Exchange, yes bank share price ended 5.84 percent higher at rupees 45.30 percent

Though share of Yes Bank has fallen 32% during the last trading season, it has gone over 12% in intraday trade as per Bombay Stock Exchange market reports. After losing in sharing market for 5 days, Yes Bank rallied up. Pertaining to this, there are rumors that the bank may be taken over by a government entity. The CEO of Yes Bank Ravneet Gill, stated that the bank would raise funds for more than $500 million in funding. Again, relating to this, plan B and plan C were made to ensure stable conditions during fundraising.  

Therefore, based on recent yes bank news regarding the stock market prices, it has opened higher shares that have yielded the bank up to 12.5%, touching a high intraday price of rupees 48.15 on the Bombay Stock Exchange. After this, the stock ended at rupees 45.35 that is rising to 5.96 percent from the yes bank share price of 241.64 lakh shares. From this, the average volume of two –weeks is near about 256.55 lakh shares.

According to the news of the National Stock Exchange, yes bank share price ended 5.84 percent higher at rupees 45.30 percent. Also, the scrip hit of intraday is almost rupees 48.80 after raising high compared to the last closing yes bank share price target of rupees 42.80.

Recent rise in the share price of Yes Bank

Experts are wondering about the sudden rise in the share price of Yes Bank. The share price of the bank has made it possible to make its shareholders rich by favoring rupees 4500 crores in a day. This has occurred due to foreign investment of around rupees 8520 from a foreign company. It is further seen that the market cap enhanced from rupees 14455 crores to rupees 19000 crores. However, the bank’s share price closed at rupees 70.30 at the end of days trade that resulted up to 23.77%. In addition, the bank declared that it had received high biding offers from global investors for a huge investment of $1.2 billion through new equity shares.

Yes Bank
Though share of Yes Bank has fallen 32% during the last trading season, it has gone over 12% in intraday trade as per Bombay Stock Exchange market reports. Wikimedia Commons

Important things to know before buying shares from Yes Bank

Before buying shares from the stock market, it is necessary to consider some factors that are mentioned below. 

  • Earning growth 

Before planning to buy share, check the net gain of the financial institute over the past time. This shall help grasp better insight into whether it is worthy of buying shares or not. This is also the case when wondering whether can i buy yes bank shares or not. Even if the earnings growth of the company is not steady, try to choose the one that has a steady and consistent growth record as it would be the safest bet.

  • Stability 

There is a time when every company’s stock loses value. Some similar scenario is also seen in Yes Bank when the shares have fallen over 38 per cent during the last month. This further resulted in stress in the financial system coupled with some delay in the final investment plans. Thus, the doubt arises among investors whether it will be worthy of buying beaten-down shares before the board concludes for a suitable decision. Also, yes bank share split took place from rupees 10 to rupees 2 during 2017. 

  • Debt-to-equity ratio 

It is common for companies to have debt in the balance sheet. Carrying liabilities is common even for the richest company in the stock market. Research well before buying shares from the company by checking its debt-to-equity ratio. Here, try to choose a company that has more assets compared to liabilities. If you are looking for an investment with low risk, the debt-to-equity ratio of the company should be 0.30 or lower than that. As of September 2019, the debt to an equity share of Yes Bank was 3.36. However, the range of the ration is from 4.05 to 0.99 based on the records of the last 13 years. 

  • Relative strength of bank in the industry

Check the company’s place in the industry before buying shares and try to analyze whether it promises stable growth in the future. Try to find out whether it can fight against its competitors in the market by checking its relative strength in the industryand whether it maintains a stable position in the industry.

  • Price-to-earnings ratio

You have to check how the stock price of the company is going with the earnings. At the time of investing, this is the most important consideration. The ratio indicates the current price ratio of the company. This is also the case when you wish to buy shares from Yes Bank. You have to consider the current price and then divide it by earning per share of the company. You should go through these details properly before you decide to buy shares from the stock market. 

  • Dividends offer by the financial institute

If the financial institute can pay dividends, it indicates the stability of the company. But if the company has high yields, it points towards the instability of the company. Try to look for the companies that are paying modest rates along with increasing dividends over time. For the last financial year, Yes Bank has announced an equity dividend of 100.00% through dividend yield of 4.41%. With stable dividend track report, it is declaring constant dividends for the past few years.

Yes Bank
Experts are wondering about the sudden rise in the share price of Yes Bank. The share price of the bank has made it possible to make its shareholders rich. Pixabay

However, yes bank all time high share price is evident of the fact that the bank is going to pass all hurdles overcoming both unknown and known challenges in the coming years. The brokerage house considers Yes Bank as high-risk potential firm that is able to maintain its stability in the competitive market even if it loses value in the stock market.

ALSO READ: Here’s why Indians Spend Nearly 1,800 Hours a Year on their Smartphone

From sources like Citax Holdings, it is known that Yes Bank has asked the banks to deposit $500 million in the bank’s account within 10 days. Therefore, even after this, the financial institution is proceeding to gauge potential share buyers to raise the capital to $2 billion.  

 

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