Ahead of Q4 results, the share price of Yes Bank drops. Must you purchase?

Following the news that the private lender had attracted a record number of shareholders during Q4FY23, Yes Bank shares have been moving strongly upward. Yes Bank shareholders are eagerly awaiting the Q4FY23 results, which are due on April 22, 2023, or tomorrow. In the past five sessions, the share price of Yes Bank has increased by 7.50%. While Yes Bank shareholders anticipate an upward trend following the release of the bank’s results, new investors are looking for a bottom-fishing opportunity in the event that the share price of Yes Bank drops significantly on the day before the release of the results.

Yes Bank’s share price ended Friday’s trading sessions at 16.20 rupees per share, or around 1.80% less than its previous closing of 16.50 rupees per share.

Experts on the stock market claim that the number of Yes Bank shares has increased recently, which will have a short- to medium-term negative impact on Yes Bank shareholders. In addition to this, the bank is still struggling with the crisis it had three to four years ago. Yes Bank’s crisis has subsided since SBI took over administration, although it is still present. Therefore, Yes Bank will need to deliver strong Q4 results when the market opens the following Monday if it wants to see a significant increase in the price of its stock.

Yes Bank brings attention to

Sandeep Pandey, Director at Basav Capital, commented on the Yes Bank results and their relationship to the Yes Bank shares, saying, “Recently, Yes Bank shares struck the news for obtaining the largest number of shareholders, leaving Reliance Industries Ltd, HDFC Bank, TCS, and Infosys behind. Shareholders of Yes Bank and stock market investors, though, need to be aware of a catch. The private lender has increased its private equity many times in the last few quarters, which will halt any sudden upward or downward movement in the stock price of the banking industry. We think the action is intended to prevent a dramatic decline in the share price of Yes Bank after the three-year lock-in period of SBI, Axis Bank, IDFC First Bank, HDFC Bank, Kotak Mahindra Bank, and others ends in March 2023.

Sandeep Pandey, a former deputy vice president of the HDFC Bank, continued by stating that although a decline in the share price of Yes Bank was anticipated after the three-year lock-in period ended, the decline has been contained during the past month due to an increase in the number of shares outstanding.

Values of Yes Bank shares, 

Saurabh Jain, Vice President — Research at SMC Global Securities, advised stock market investors to wait for Yes Bank results before taking any positions in the company’s stock. “Yes Bank management has to face a lot of challenges ahead like AT1-bond payment, in case the court verdict goes against them, and improving its margins and NPA at a rapid pace,” Jain said. As a result, it becomes essential for stock market investors to wait for the Yes Bank results because Yes Bank shares are still very expensive by about 20–25 percent, which indicates that there is still a chance of a correction in the banking scrip.

Outlook for the price of Yes Bank’s shares

Ravi Singhal, CEO of GCL Broking, discussed critical levels for Yes Bank shares when he said, “Yes Bank shareholders are advised to maintain strict stop loss at 15 apiece levels as any favourable result in the Yes Bank results may spurt in volume leading to rise in Yes Bank shares up to 18 apiece levels. However, new purchasing is only advised if it maintains above levels of 18 per piece for the target of 22 levels in the near term.



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