InvestorQ : Yes Bank is now available at a P/E of 11X. This is the lowest among private banks, so can I buy Yes Bank at current prices?
Neelam Naik made post

Yes Bank is now available at a P/E of 11X. This is the lowest among private banks, so can I buy Yes Bank at current prices?

Answer
image
Priyanka N answered.
2 years ago
Follow

Low P/E is not always a good case to buy stocks. Yes Banks has corrected sharply in the last few months because of weak asset quality. The bank has major exposures to companies like Jet Airways, IL&FS and Dewan Housing, which are all either under tremendous stress or already bankrupt. In the last two quarters, Yes Bank has written off huge amounts as bad assets and that is likely to continue for a few quarters more.

There is a new problem for Yes Bank in the form of the recent rating downgrade. On Wednesday, ICRA downgraded Rs.10,000 crore of Yes Bank debt by two notches and nearly Rs.22,000 crore of debt by one notch. That is likely to keep pressure on Yes Bank cost of funds. Also, most of the promoter stake is now under pledge and that also remains a risk. You should not be too enthusiastic about buying Yes Bank at this point of time till there is clarity on the asset quality of the bank.



98 Views

image
Mathew Cherian answered.
2 years ago
Follow

I think banks are being consolidated because of weakness from rising rates that are creating fault lines in the commercial risk status of economy. So post consolidation the banks are surely going to get strengthened, and Yes bank and many others which are of low premium now will pick up speed when mergers are over. Then it should be held till then, till after all the consolidation processes are finished.

21 Views

image
VIKAS DELIWALA answered.
2 years ago
Follow

YES BANK IS CURRENTLY IN LOT OF NEWS WHICH MIGHT BE POSITIVE OR NEGATIVE...
AND EVEN IF IT TRADES @ GOOD PE RATIO IT HAS HIGHER POSSIBILITIES TO MAKE OR WIPE OUT PORTFOLIO'S .. SO IF YOU CAN TAKE RISK THAT HIGH GO FOR IT 👍 BUT IF NOT TRY OUT OTHER BANKS MIGHT COSTLY BUT LESS RISKY AND HAVING HIGHER GROWTH PROSPECTIVE ..

20 Views

image
2 years ago
Follow

Not the best time to invest in Yes Bank. Lots of internal issues and RBI things running aground.

19 Views

image
Nenthok pulong answered.
2 years ago
Follow

No it is not fair bank is provided by government for the public not for private use
wether it's P/E .so it's against the law.


15 Views

image
Anand malavia answered.
2 years ago
Follow

Don't catch falling knives.

12 Views

image
Anand malavia answered.
1 year ago
Follow

Don't catch falling knives.

0 Views