YES Bank shares slump 23% from one-year high level; stock looked 'weak' on charts, say analysts

Shares of YES Bank Ltd extended their fall in Monday's trading session. The stock plunged 4.27 per cent to hit a day low of Rs 25.11. At this price, the scrip has tanked 23.47 per cent from its one-year high value of Rs 32.81, a level seen earlier this month on February 9.

The private lender recently saw a couple of bulk deals. US-based Carlyle Group entity, CA Basque Investments, has sold 39 crore YES Bank shares, or 1.35 per cent stake, at an average price of Rs 27.10 per share, BSE bulk deal data showed. The Carlyle firm held a 6.43 per cent stake in YES Bank, as of December 31, 2023. The figure has now reduced to 5.08 per cent. That said, Morgan Stanley Asia (Singapore) PTE has picked up around 30.63 crore shares at Rs 27.10 a piece, BSE data stated.

Technical analysts largely suggested that the counter looked 'weak' on daily charts. Support on the counter could be seen around Rs 23 level.

DRS Finvest founder Ravi Singh said, "The stock looked weak on daily charts and may slip towards Rs 23 level. Resistance will be near Rs 27."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a decent correction from its peak level. It has seen heavy profit booking. Immediate support will be near Rs 24.60 and next major support is lying near Rs 22."

AR Ramachandran from Tips2trades said, "YES Bank stock price looks bearish on daily charts with strong resistance at Rs 27.35. A daily close below support of Rs 23 could lead to a downward target of Rs 20 in the near term."

The counter traded lower than the 5-day, 10-, 20-day and and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 40.40. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 75.32 against a price-to-book (P/B) value of 1.82. The private bank's earnings per share (EPS) stood at 0.35 with a return on equity of 2.42.

Separately, Goldman Sachs said the YES Bank's fundamentals have been under pressure due to subdued margin profile and a bottoming of credit cost improvements, which may lead to a low return on asset (RoA) of 0.3 per cent in FY24 (2023-24).

The global investment firm has given a downward target of Rs 16 on the counter.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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