Why Yes Bank share price dip ahead of Q2 results 2024? | Stock Market News

Q2 results today: Ahead of the announcement of Q2 results 2024 on Saturday, Yes Bank share price witnessed intense selling pressure last week. In the previous five straight sessions, Yes Bank’s share price nosedived from around ₹21.50 apiece on the NSE to ₹19.50 per share, logging over 9 per cent weekly loss. According to stock market experts, Yes Bank’s Q2 results 2024 are expected to come flat. They said that slippage is expected to rise marginally.

Experts also said Yes Bank may report slightly lower growth due to moderate deposit growth during Q2FY25. However, they maintained that Yes Bank shares have already discounted the flat Q2 results 2024 and that there is a potential for a trend reversal next week, provided that the current support of Yes Bank shares placed at ₹16.90 remains sacrosanct in the first few sessions.

Yes Bank Q2 results preview

Speaking on Yes Bank Q2 results 2024, Manish Chowdhury, Head of Research at StoxBox, said, “YES Bank is expected to report a steady performance for the quarter ending in September. During this period, the Bank may experience slightly lower growth than anticipated, accompanied by moderate deposit growth. We expect earnings to remain flat QoQ due to stable profit margins, while slippages will likely stay steady but at elevated levels. We foresee stable growth in NII, supported by average loan growth across the industry. Although deposit growth is projected to remain robust, the Bank may encounter some volatility due to the timing of income recognition.” This performance stability should reassure investors and analysts about the bank’s resilience.

“Additionally, the earnings impact will be difficult to forecast, given the nature of the provisioning policy. This quarter, we anticipate steady progress in recovering loans and upgrades as security receipts mature. Given these factors, we believe that YES Bank is positioned to deliver steady performance this quarter,” the StoxBox expert said.

Highlighting the outcome from Yes Bank’s provisional business update, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Yes Bank in its provisional business update reported a healthy credit growth of 3% QOQ and ~13% YoY, while deposit mobilisation pace was strong as it grew by 4.6% QOQ/18.3% YoY.”

Speaking on Yes Bank’s Q2 results preview, Mahesh M Ojha said, “Margins should see a contraction, while PPOP/average assets are likely to remain broadly stable sequentially. Credit costs should remain stable, while ROAA may see a decline in the quarter due to the lower recovery from SRs. Asset quality performance is expected to improve sequentially with a decline in net delinquencies.”

However, brokerages like JM Financial, Nomura, and Kotak Institutional Equities are expecting robust set of numbers in Q2FY25. These brokerages believe that Yes Bank may report significant growth in its Q2 results today, with net profit potentially increasing by up to 145 per cent and net interest income rising (NII) by up to 23 per cent year-on-year.

Yes Bank share price target

Speaking on Yes Bank’s share price outlook, Chandrakant Maske, AVP — of technical and derivative Research at Spark Capital, said, “Yes Bank shares have a strong base at ₹16.90 per share mark. The stock may witness some selling pressure in the first few sessions; however, if Yes Bank’s share price manages to sustain above this support, we may expect a trend reversal in Yes Bank shares. So, those with Yes Bank shares in the portfolio are advised to hold the scrip, maintaining a strict stop loss at ₹16.90 apiece. The stock may soon touch ₹23 and ₹24.80 apiece.”

On the suggestion to fresh investors, Chandrakant Maske of Spark Capital said, “Fresh investors having high-risk appetite may also buy Yes Bank shares, maintaining a buy-on-dips strategy until the stock sustains above ₹16.90. Fresh investors are also advised to hold the scrip, maintaining a strict stop loss at ₹16.920 for the short-term targets of ₹23 and ₹24.80 by the end of December 2024.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.