Stock market news: Why is Yes Bank share price falling despite positive Q1 results 2024?

Stock market news: After the announcement of Q1 results 2024 on Saturday last week, Yes Bank shares witnessed strong buying on Monday this week. However, the upside optimism diminished on Tuesday and Yes Bank share price has continuously slid for the last three straight sessions. Yes, Bank share price today opened with a downside gap at ₹24.59 apiece on the NSE and touched an intraday low of ₹24.42 per share, recording an intraday loss of around 2 per cent. After a sharp upside movement on Monday this week, Yes Bank shares ended at ₹25.67. This means in the last three sessions, Yes Bank share price has slipped by around 5 percent.

According to stock market experts, Yes Bank shares are sliding for two significant reasons: profit-booking after Q1 results 2024 and stake sale buzz. They said that the fundamentals of Yes Bank are continuously improving, and in Q1FY25, the private lender reported an attractive set of numbers. They added that after the Government of India (GoI) sold its stake in IDBI Bank, the market speculated on SBI's stake sale in Yes Bank. However, an official announcement from the SBI and Yes Bank has yet to be announced. SBI has defined such rumours. So, one should stick to the fundamentals and cash in on this opportunity through bottom fishing.

Triggers for Yes Bank shares

On why are Yes Bank shares falling, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Profit-booking in Yes Bank shares was widely awaited after Monday's rise as Yes Bank shares were priced in much before the Q1 results 2024. So, one of the major reasons for the fall in Yes Bank shares is the profit-booking trigger after Q1FY25 results. Another reason for Yes Bank share price fall is speculative as the market expects an SBI stake sale in Yes Bank after the announcement of the GoI stake sale in IDBI. Even though SBI has denied any such move in the near term, Yes Bank shareholders are finding it risky to hold the stock for long. So, those with a short- to medium-term view of the stock are booking profit in the wake of SBI's stake sale.” 

Gorakshkar said that some brokerages giving a ‘sell’ tag after Q1 results 2024 could also be a reason for a profit-booking trigger in Yes Bank shares.

However, Gorakshkar said that neither SBI nor Yes Bank has dropped any hint about SBI's stake sale. Once SBI has made it clear about the market buzz, it can be a good opportunity for bottom fishing, and Yes Bank shareholders may think of accumulating more in this Yes Bank share price fall.

Yes Bank share price target

On the technical outlook of Yes Bank shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “Yes Bank shares have strong support placed at ₹23, whereas they are facing a strong hurdle at ₹28. So, those with Yes Bank shares in their portfolio are advised to hold the scrip with a stop loss at ₹23 for the near-term target of ₹28.”

When asked whether a fresh investor can buy Yes Bank shares, Bagadia said, "Fresh investors can buy Yes Bank shares at current levels for the near-term target of ₹28. However, they must maintain a stop loss at ₹23 while taking any buy position in the scrip."

Yes Bank Q1 results 2024

Yes Bank reported a standalone net profit of ₹502.43 crore for Q1FY25 (quarter ended June 30). This was up 46.4 percent compared to the ₹342.52 crore profit after tax (PAT) reported by the bank in Q1FY24. Further, Q1FY25 interest earned was reported at ₹7,719.15 crore, up 19 percent from ₹6,443.22 crore in Q1FY24.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.