Yes Bank Upgraded To 'Reduce' Rating By ICICI Securities After Q4 Results —Here's Why

The brokerage appreciates Yes’ improving operating performance and see RoA rising from ~0.6% in FY25 to ~0.9% in FY26E and hitting the 1% mark in FY27E, benefitting from NIM expansion and muted credit costs and values the stock at ~0.9x FY27E ABV (~0.8x earlier) and arrive at revised target price of Rs 16 (versus Rs 15). Basis limited downside, rating is upgraded to Reduce (versus Sell)..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Yes Bank Ltd. reported Q4 FY25 PAT of Rs 7.4 billion (up 21% QoQ; 5% beat) led by net interest margin uptick, seasonal rise in fee and contained opex while asset quality improved QoQ. RoA inched up further to 0.7% (versus 0.6% QoQ). CET1 stood at 13.5%. Low-yielding RIDF investments reduced to ~8.7% of assets (versus ~11% YoY). Our estimates of NIM expansion over FY25– 27 factor in further normalisation in RIDF and recent cut in SA rates. Gross slippages moderated to 2% annualised while net carrying value of SR now stands at ‘nil’. We appreciate Yes’ improving operating performance and see RoA rising from ~0.6% in FY25 to ~0.9% in FY26E and hitting the 1% mark in FY27E, benefitting from NIM expansion and muted credit costs. We value the stock at ~0.9x FY27E ABV (~0.8x earlier) and arrive at revised target price of Rs 16 (versus Rs 15). Basis limited downside, rating is upgraded to Reduce (versus Sell). Key risks: Faster-than-expected ramp-up in organic PSL and higher-than-expected NPA recoveries..Click on the attachment to read the full report:.Yes Bank Shares At Over Two-Month High On Q4 Earnings Growth.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Yes Bank Upgraded To 'Reduce' Rating By ICICI Securities After Q4 Results —Here's Why

Basis limited downside, Yes Bank's rating is upgraded to Reduce (versus Sell) by ICICI Securities.

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