1. Citi maintains ‘buy’ rating on Yes Bank stock with target price of Rs 1,025

Citi maintains ‘buy’ rating on Yes Bank stock with target price of Rs 1,025

The boardroom challenge to CEO & primary shareholder (~11.8%) Rana Kapoor from the family of a copromoter (~10.3%) has got some closure with the Bombay High Court’s ruling.

By: | Updated: June 23, 2015 12:29 PM
yes bank

While the legal tussle is not necessarily over, it should not impact the business or the stock of Yes Bank. (Reuters)

The boardroom challenge to CEO & primary shareholder (~11.8%) Rana Kapoor from the family of a copromoter (~10.3%) has got some closure with the Bombay High Court’s ruling. It validates Kapoor’s term and role as CEO (and does not grant the challenger a board seat) – key for the business, and leaving it largely business-as-usual for YES Bank. It does however annul the appointment of three executive directors, and seeks procedural reviews for four others. While the legal tussle is not necessarily over, it should not impact the business or the stock.

Rana Kapoor’s CEO role/term is validated, the co-promoters’ family does not get a seat on the board: This is a material win, effectively leaving current management control unchanged, and removes the possible risk of an operating challenge or uncertainty. This is a key gain for Kapoor/management, and it should effectively leave the business and the stock un-impacted.

We believe management would do well to get over the ongoing legal and public tussle, which is a slight overhang, and probably does impact the business at the margin. That said, it’s probably not meaningful – operationally, or from a strategic perspective (stock +70%, over two years during the public legal challenge), and we continue to maintain ‘buy’, with target price of Rs 1,025 .

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  1. M
    Maynard
    Jun 23, 2015 at 10:36 am
    Shareholders money spinner.. Value stock
    Reply
    1. H
      Hiren Barot
      Jun 23, 2015 at 11:13 am
      This reinstates our faith in Yes bank management, their vision and leadership. Yes bank has been the best performing stock in the last decade because of leadership and vision of Rana Kapoor. This is true professionalism.
      Reply
      1. P
        Prateek
        Jun 23, 2015 at 10:58 am
        Banks growth and management validated internationally. Good going rana kapoor and yes bank
        Reply
        1. K
          Keval
          Jun 23, 2015 at 3:17 pm
          Yes Bank remains one of the top pick after court judgement..... BUY/HOLD
          Reply
          1. S
            Shariq
            Jun 23, 2015 at 11:01 am
            *won
            Reply
            1. S
              Shariq
              Jun 23, 2015 at 11:01 am
              Rana kapoor has maintained so much grace. He's one by standing by his principles while Shagun has tried mudslinging. Good to see global validation of rana kapoor and management by citi and hsbc
              Reply
              1. S
                Sumit parasher
                Jun 23, 2015 at 11:03 am
                Wow! Citi and HSBC cheering for rana kapoor and yes bank. That's big!
                Reply
                1. A
                  Akash
                  Jun 23, 2015 at 10:38 am
                  Great to see business as usual at the bank. Shareholders like me are delighteed to hear this.
                  Reply
                  1. A
                    Anjali Bose
                    Jun 23, 2015 at 10:56 am
                    Yes Bank has always been a safe bet !! Has never disappointed its shareholders.
                    Reply
                    1. A
                      Akshay Kanti
                      Jun 23, 2015 at 12:14 pm
                      Yeah!!!
                      Reply
                      1. A
                        Anjani
                        Jun 23, 2015 at 10:41 am
                        Very good opinion by citi. I will buy more shares
                        Reply
                        1. A
                          Aman Kaul
                          Jun 23, 2015 at 10:56 am
                          YES BANK is destined to reach great heights!! I believe this wont affect the growth at all!!
                          Reply
                          1. Sk Armaan Sarkar
                            Jun 23, 2015 at 10:40 am
                            With Madhu KApur and shagun Gogia not in the management the status quo has been maintained which according to me is the best outcome becuase Yes Bank has been doing immensely well under the guidance of Rana Kapoor
                            Reply
                            1. Sk Armaan Sarkar
                              Jun 23, 2015 at 10:37 am
                              Yes Bank is safe in the able leadership of Rana Kapoor and we have immense faith in him.
                              Reply
                              1. G
                                Gaurav
                                Jun 23, 2015 at 10:00 am
                                Mr Rana Kapoor has always upheld the interest of the vast majority of public shareholders. We have complete trust in his leadership and his decisions are always in the Best Interest of the Bank and shareholders
                                Reply
                                1. K
                                  Karishma
                                  Jun 23, 2015 at 11:00 am
                                  A third party view on this topic to provide a clear view on this battle. Finally professionalism is winning over family run business strategy. Kudos to the YES BAMK management.
                                  Reply
                                  1. K
                                    Kritika Shah
                                    Jun 23, 2015 at 10:48 am
                                    This is enough proof of the faith that is there in the leadership of Rana Kapoor.
                                    Reply
                                    1. A
                                      Azaan
                                      Jun 23, 2015 at 10:53 am
                                      Happy to be a shareholder of Yes bank! Under the guidance of Rana Kapoor and the current Board, I know my money is safe!
                                      Reply
                                      1. M
                                        Mahjabeen Banu
                                        Jun 23, 2015 at 10:43 am
                                        This is really good news and I expect my share value to go beyond 1500. Buy more yes bank shares
                                        Reply
                                        1. K
                                          Kavya
                                          Jun 23, 2015 at 10:51 am
                                          The Bank will continue growing in Rana Kapoor's leadership.. Such minor jitters and personal interests cannot impact the functioning of the Professionals' bank.
                                          Reply
                                          1. S
                                            Sacred Heart
                                            Jun 23, 2015 at 10:29 am
                                            Such distractions will come and go..but the insution will keep on growing
                                            Reply
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