Yes Bank Has Targets of 405
August 2, 2011 | In: Mid Cap Stocks, Stocks Analysis
Yes Bank posted a really strong set of numbers for Q1 FY12, much above the expectations of analysts. Yes Bank has consistently been delivering a strong growth and most of the times their results are above expectations. I believe moving forward Yes Bank will continue to post strong growth as we move forward into next coming quarters. Yes Bank posted a strong 35% jump in its Net interest income to 354 crore as against 262 crores and net profits surged 38% to 216 crores as against 156 crore. NIMs remained stable at 2.8 and CASA ratios went up 50%.
Yes Bank is expected to continue posting a strong growth in coming quarters and the management has guided to maintain NIMs moving forward. We’re expecting a growth of over 30% for the full year FY12. Yes Bank is expected to post an EPS of at least 27 for FY12. The stock is currently trading around 310, 11.4x FY12 EPS and thus it is a strong buy around current levels with a target price of 405, 15x FY12 estimates. The only risk to the targets is if Yes Bank fails to perform as we expect but seeing the past trend of the company, we can only expect something better from the company.
Yes Bank has a target of 405.
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