Yes bank

Hi guys,
I have been trading in this stock from a long time and last time was the first time I shared my view on this forum which looks like it worked.

Recently came across the interview of Mr Prashanth kumar and I am now 100% convinced that all bald men are pretty calm

This month has been so interesting that I forgot that this quarter is almost ending.

Some important points:

1. They have received close to 6000cr money and balance can be converted within 18 months post march. CET will improve by 250bps in this quarter.

2.Asset transfer completed and GNPA,NNPA will come down. One good thing is that now I came to know all the shares yesbank held with them of different companies. These were disclosed when they got transferred to ARC.

3. ROA of 1% by Q3 FY24 and 1.5% by FY25. Very much achievable as they are already doing ROA of 1% on active book.

4. No Dilution till FY26. This makes EPS projection easy.

5. They are planning to grow at 20% for next 2 to 3 yrs. This is the best news I came across and this is very much achievable. This means a balance sheet of 5lakh cr by FY25 end.

6. They are confident that their large investors are not planning to exit post march.

My EXIT plan.

After seeing the recent move which was totally unexpected I am not keeping any specific price point where I would like to exit.

I want to exit this bank max by FY25 end or mid FY26. The simple reason is that by then I expect it to be like any other SCB and not have any other benefits. I don’t want to play this as a growth stock.

1. By FY26 there might be capital raise and I don’t want to hold it till next dilution.
2. ROA and ROE is going to MAX out and there after it is going to grow at industry rate or below that.
3. Prashanth kumar might retire. He is the man behind the growth of yesbank.
4. They receiving 125% valuation for their NPA so the extra 25% will be reflected by FY26 and all the recovery benefit might also be reflected.
   5, Investor sentiments is going to be highest in FY25 only because they will get the confidence that this bank can now deliver consistent profits and is continuing to give them as per industry standards.

I will not be surprised if they get a 3 to 4 P/B kind of peak valuation and that is the reason I don’t tend to keep a price target but a TIME TARGET

Just to conclude in the interview 2 songs were used to describe yesbank

1. Abhi tau party shuru hui hai
2. Aa dheke jara kis me kitna hai dum

This shows attitude of BANK, shareholders and all stakeholders.