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Should You Buy Yes Bank Now?


Should You Buy Yes Bank Now?

Hello friends and welcome to the amazing adviser. There are a lot of speculations and rumors regarding Yes Bank and people are almost asking daily what to do in Yes Bank's share, should they buy or just avoid. Most of the experts are recommending avoid this stock. But I have something more for you. So here I am going to give you 3 reasons that are arguing should you buy Yes Bank now?


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Reason 1: Attractive P/E valuation

This is one of the common factors which I personally check whenever I buy or analysis a stock's fundamental. Remember we are here to buy good stocks at the cheap price and sell them at a higher price. P/E is an excellent tool to measure it. Normally it indicates the price you earn buy Investing. You can understand it in the following chart.




Yes Bank's current market p/e is 10.09 whereas industry p/e is 32.47. Rule of thumb is when stock's P/E is less than industry P/E then it indicates a buy because the stock is trading at lower valuations. But it is not correct at all the time because if a stock has no fundamental then P/E will automatically low. Things are different in case of YES Bank as it is not only a sound business from a fundamental perspective but also enjoys a good brand image in the industry despite the disputes which is currently going on its ownership.

Reason 2: Growth Story

This is the second reason which is suggesting that you should think to invest in this stock. Without any delay let's see the performance of this stock in terms of EPS and Total Income.


(Total Income figures are in crores.)


From the chart, I think I don't have to explain anything more. You can clearly see the performance. Apart from 2014-15 Yes bank has managed to grow its EPS more than 20% per annum. Do you think just because of the dispute which is going on in Kapoor's family will anyway hamper the business performance of Yes Bank? Clearly No. This is the biggest reason to buy YES Bank.

Reason 3: Consistent Dividend Yield

The dividend is given to shareholders as a part of appropriation of income of the company. Yes, the bank is consistently giving a dividend to its shareholders from last eight years. So this is a good sign for any company. At the current price, you will get dividend at the rate of 1.38% which is not bad.




"Without risk, there is no return." If you understand this line then you should continue reading this article because there is no point if you are not willing to take the risk for a good return. According to me, Yes Bank is good bet which will give yo u handsome return in long term. Even the founder of this company tweeted that he will not even sell a single share of this company and pass the legacy to the next generation. So if you want to choose a stock for your children or grandchildren then this is the perfect time to select this stock.


I am not saying that this stock will go immediately up, it can go down. But this is the game. You never know what will happen the next day but you can predict with a solid analysis, that's what I'm trying to do.

Don't invest more than 5% of your total portfolio in this stock, as it is the general rule of investing.



(Disclaimer- I have this stock in my portfolio.)

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