January 7, 2013

Nishant this one is for you…..

Yes for Yes Bank after doubling inside a year to a New High of @ Rs 500 !?.

Check out the Detailed Coverage of Yes Bank on Scrip Watch on our website www.jsalphaa.com 

The Bank’s on a great Share Price Momentum  and has doubled inside  a year ~ It’s got ambitious deposit and advances targets by FY 15 that should see Operations scale up significantly ~ With a Market Cap of just under Rs 18000 crs it is twice that of Federal Bank and a a shade behind IndusInd Bank ~ Both,Kotak Mahindra and Yes Bank began operations  together,being the only two banks to get the banking license in the private sector  a decade ago ~ Both have clocked a FY 12 PAT in and around Rs 1000 crs but Kotak Mahindra ‘s Market Cap has raced away to near Rs 50000 crs and it has been a huge wealth creator with very high relative earnings and assets valuations

So one way to look at Yes Bank is that can play catch-up with Kotak Mahindra Bank ~ Another cautious approach is to be wary of the High Valuations and there is is no hint of any non linear earnings growth in the short term ~ in fact newer private banks are scheduled to come in soon and competition should be tight even though the landscape is widening~ but financial inclusion may be a government and RBI objective but it is not really a money spinner for the banks

Kept it on Scrip Watch