1. Yes Bank shares more affordable now at under Rs 400; hits lifetime high ex-split

Yes Bank shares more affordable now at under Rs 400; hits lifetime high ex-split

Shares of Yes Bank hit a lifetime high on Thursday after the stock of India’s fifth-largest bank went ex-stock split effective immediately from today.

By: | Updated: September 21, 2017 2:45 PM
The stock of Yes Bank rose as much as 2% to hit the all-time high of Rs 383.25 on BSE.

Shares of Yes Bank hit a lifetime high on Thursday after the stock of India’s fifth-largest bank went ex-stock split effective immediately from today. Earlier in July 2017, Board of Directors approved a subdivision of the equity shares of Yes Bank in 1:5 ratio. The stock of Yes Bank opened at Rs 375.9 but within minutes of trading, it rose as much as 2% to hit the all-time high of Rs 383.25 on BSE. The stock of Yes Bank is more affordable now at under Rs 400 from its previous price around Rs 1,880 per share after it turned ex-split today.

The record date for determining the eligibility of shareholders with regard to the subdivision of shares is fixed tomorrow, 22 September. Technical Analyst Gujral Ashwani recommended a ‘buy’ on Yes Bank on Thursday with a target price of Rs 392 and a stop loss of Rs 376. Yes Bank is now behind the industry heavyweights HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and other major private lenders Axis Bank and IndusInd Bank in the domestic private banking market players with a market cap of Rs 86,841.83 crore.

Stock performance

Since the time bank had announced the stock split plan the shares of Yes Bank has outperformed the market and advanced 28% to Rs 383.25 (split adjusted) from Rs 298.67 as on 3 July 2017. While the BSE Sensex has gained around 3% during the same period. “The board has considered and approved the subdivision of existing 1 equity share of face value of Rs 10 each fully paid up into 5 equity shares of Rs 2 each fully paid up,” Yes bank said in an Exchange filing. Following this announcement, the shares of Yes Bank jumped 14% in just three trading days from Rs 323 to Rs 368 in last week of July, the time when the equity benchmark — Nifty 50 — surpassed the five digit mark of 10,000 points for the first time ever on 25 July 2017. While the stock of Yes Bank had returned about 68% so far since January 2017.

32% rise in Q1 profit

Yes Bank net profit zoomed 32% to Rs 965.52 crore for the first quarter ended June of the financial year 2018 compared to Rs 731.80 crore year ago in the same period. While the total income of the bank jumped 21% to Rs 5,785.96 crore in the April-June quarter, from Rs 4,762.83 crore in the same period of 2016-17.

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