Yes Bank has faced some challenges in the past years, including a restructuring process that was necessary to restore its financial health. Despite this, Yes Bank’s share price has rebounded significantly, and you might be wondering what the target price for the bank’s shares will be in 2025.
In this blog post, I will analyze the factors that are likely to influence Yes Bank’s share price in the coming years and provide an estimate of the bank’s target price in 2025.
What Will be the Target Price of Yes Bank Shares by 2025
Yes bank stock is currently trading at Rs 16 to Rs 17 price levels. According to current analyst opinions, the consensus price target for Yes Bank’s shares in 2025 is around Rs. 20 to Rs. 25. This is based on the bank’s current financial performance and growth prospects, as well as the overall economic conditions in India.
Some analysts believe that Yes Bank’s shares have the potential to rise significantly in the coming years if the bank continues to improve its financial health and execute its growth plans effectively.
Price targets are based on a combination of fundamental, and technical analyses of Yes bank’s performance. You can also learn how to invest Rs. 5000 in share market in India.
Let’s have a look at the fundamental & technical analysis of Yes bank.
Fundamental Analysis of Yes Bank Stocks
Let’s look at some of the factors considered by banks and experts in their reports to understand the fundamental analysis of Yes Bank.
Revenue growth: Yes Bank’s revenue growth is negative for the last 4 years with a 3-year CAGR of – 14%. The bank’s revenue is expected to improve in the financial year 2022-22 as the first 3 quarters’ reports have better results as compared to last year’s revenue.
| Year | Revenue (Crore) |
| 2022-23 (3 Quarters) | 16481 |
| 2021-22 | 19024 |
| 2020-21 | 20042 |
| 2019-20 | 26067 |
| 2018-19 | 29625 |
Profitability: Yes Bank’s reported a profit of Rs 1,066 crore for the fiscal year 2021-22 after reported losses for 2 consecutive years for 2020-21 and 2019-20.
| Year | Profit |
| 2021-22 | 1066 |
| 2020-21 | -3462 |
| 2019-20 | -1648 |
Yes banks’ NPAs have decreased in recent years which is a positive sign. The bank’s gross NPA ratio stood at 12.89% as of September 2022 as compared to 15.36 % as of December 2020.
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Management quality: Yes Bank’s management quality has been questioned in the past due to issues such as corporate governance and related party transactions. However, the bank’s new management team has taken steps to address these issues and improve the bank’s overall performance.
Growth Plans: Yes Bank has announced plans to focus on profitable growth in key business segments such as retail banking, SME banking, and wealth management. The bank has also partnered with several fintech companies to leverage technology and innovation to enhance customer experience and drive growth.
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Technical Analysis of Yes Bank Stocks
Yes Bank’s share price is likely to be influenced by market sentiment and news flows in the short term. Over the longer term, the bank’s financial performance and growth prospects are likely to be the key drivers of its share price.
According to technical analysts at HDFC Securities, Yes Bank’s stock is currently trading in a long-term downtrend channel. The stock has formed a lower high and lower low pattern, indicating weakness in the stock.
The stock is currently trading below its 200-day moving average, which is a bearish signal.
You can read our list of best technical indicators for trading to do the technical analysis of a particular stock.
Factors that can Affect Yes Bank Share Price in 2025
A. Positive Factors
- Economic growth: If the Indian economy continues to grow at a steady rate, it could provide a favorable environment for Yes Bank to expand its operations and increase profitability.
- Acquisitions and partnerships: If Yes Bank successfully acquires other financial institutions or forms partnerships with other companies, it could increase its market share and diversify its revenue streams.
- New business lines: If Yes Bank successfully launches new business lines or products, it could generate additional revenue streams and attract more customers.
- Capital raising: If Yes Bank successfully raises capital through equity or debt offerings, it could strengthen its balance sheet and improve investor sentiment.
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B. Negative factors:
- Regulatory changes: If the Reserve Bank of India (RBI) or other regulatory bodies impose stricter regulations on the banking sector, it could increase compliance costs for Yes Bank and potentially limit its growth prospects.
- Economic downturns: If there is a global or domestic economic recession, it could reduce demand for credit and negatively impact Yes Bank’s profitability.
- Asset quality deterioration: If Yes Bank experiences a deterioration in asset quality due to factors such as non-performing loans or fraud, it could negatively impact investor sentiment and result in a decline in share price.
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Competitors’ Comparison with Yes Bank
Yes Bank operates in a highly competitive industry, with many well-established players. Some of its key competitors include HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India. In terms of market capitalization, Yes Bank is currently ranked 8th among Indian banks.
In terms of the price-to-earnings (P/E) ratio, Yes Bank’s current ratio is 53.77, which is higher than the other competitive banks. This suggests that the bank’s shares may be overvalued.
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Conclusion
Yes Bank has had a difficult few years, but its recent recovery and focus on digital initiatives and expansion into new markets make it an attractive investment opportunity.
Based on current trends and factors such as economic conditions, industry performance, and company-specific developments, we estimate that the target price of Yes Bank shares by 2025 could be around Rs 25-30 per share.
You should be mindful of the risks associated with investing in the stock market and do your own research before making any investment decisions.
FAQs
The answer to whether Yes Bank is a good investment opportunity for long-term investors depends on various factors, including the individual’s investment objectives, risk appetite, and current market conditions.
It is advisable to consult a financial advisor before making any investment decision.
Yes Bank hasn’t paid any dividends in the last 3 financial years.
The risks associated with investing in Yes Bank include regulatory risks, market risks, credit risks, and operational risks, among others. These risks can negatively impact the bank’s financial performance and, in turn, its share price.
Yes Bank’s strategy for growth includes focusing on its retail and small business banking segments, expanding its digital capabilities, and increasing its presence in rural and semi-urban areas.
The price-to-earnings (P/E) ratio of Yes Bank is 53.8.
To invest in Yes Bank shares, you will need to have a demat account with a brokerage firm. You can then place an order to buy Yes Bank shares through the brokerage’s trading platform.
It is difficult to predict whether Yes Bank will be a good investment in 2025. However, the bank’s recent recovery and focus on digital initiatives and expansion into new markets could drive growth and help it capture market share from competitors.
Yes Bank’s share price is affected by a number of factors, including economic conditions, industry performance, company-specific developments, and analyst opinions.
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I provide the knowledge, not the recommendation. I suggest to everyone to do their research before making any investment decision.
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Please do any investment based on your own research.