Yes or Indusind

Hello,

In the banking space, I like both Yes and Indusind, However have a preference for YES.

From a pure performance perspective, Yes has seen compounded profit growth of 27% and has a ROE of 23% for the last 3 years. Indusind has a compunded profit growth of 34% however its ROE is at 17%.

From a price perspective, Yes is at a P/E of 18 (i believe it is lower mainly due to the family feud - hope it ends soon) whereas Indusind is at 25%

Yes has been consistently giving higher D/Ws. It has plans to raise huge equity (there are rumours that it may be used to buy - potentially Karnataka Bank) and has a higher possibility of giving higher returns.

If any one has done any comparison - please share.

Cheers - Yes Investing.

Bhavesh

 

I like the dividend distribution policy of Yes Bank. They want to increase the payout ratio to 20 %. My dividend will increase with time and profits. Indusind is growing faster but it is not always that it is faster.
Valuationwise, I think indusind will always quote higher because of loan portfolio i.e. Commercial Vehicles, SME. This bank is working like NBFC. Yes bank is lending to big corporates so it will always have less NIMs with risk too. Anyway I am invested in Yes Bank and happy till NPAs are within limits and bank is growing. Indusind is not in my reach as FII limit has already reached, I am NRI.
Another small bank with high ambitions working like NBFC is DCB Bank. Motilal Oswal's 100 bagger stock. I like its growth and small ticket loan portfolio.

 

Thanks Rajesh.

Do you have the list of Motilal Oswal's 100 bagger stocks?

 

If my time horizon is long say 2+ I would definitely prefer IndusInd, in fact there is really no comparison between the two...also for banks P/BV is the preferred metric not PE, also DCB maybe better bet than Yes

 

Search this site you will find the list of 100 baggers.

 

Jeet,
100 bagger stocks are DCB, Granules, Suven, Atul auto, Tata elxsi, Shilpa medi, Aarti drugs

 

Anurag - Thank you.

Bhavesh.