Yes Bank (YESBANK)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Net profit growth of 46.32% and latest quarterly net profit of ₹957 Cr indicate an improving earnings trajectory from a low base.
• Price-to-book of 1.31 against book value of ₹15.24 is not excessive, providing a modest asset cushion if recovery continues.
• Piotroski F-Score of 7/9 suggests the fundamental health is improving according to the nine-point check.
• Positive free cash flow of ₹16,246 Cr and a FairStock Score of 61/100 (STEADY) point to a stabilising business.

Concerns

• Promoter holding is 0.00%, so there is no meaningful insider ownership or skin in the game.
• ROE of 6.64% and ROCE of 6.36% are weak; the bank is not yet earning a satisfactory return on equity.
• Sales growth of -1.90% shows a shrinking top line, which makes profit growth harder to sustain.
• Altman Z-Score of 0.41, elevated leverage with debt/equity of 7.45, and zero dividend yield raise balance-sheet and shareholder-return concerns.

AI Analysis

Yes Bank is a name I have watched with a mixture of interest and skepticism. Banking is a business I can understand, but only if the institution is conservatively financed and led by honest stewards. Here, the first red flag is promoter holding at 0.00%; when those who run the game own no chips, I keep my wallet closed. The balance sheet is built on leverage—debt/equity of 7.45—which is common for banks, but it amplifies mistakes. Book value is ₹15.24 and the share trades at ₹20.03, or 1.31 times book. That is not a screaming bargain, especially when the Graham Number is ₹19.60 and my margin of safety is negative 5.72%. Return on equity of 6.64% is far below what I expect from a quality lender; it tells me the franchise is not earning its cost of capital. Sales have declined 1.90%, though profit grew 46.32% from a low base. The latest quarter, with net profit of ₹957 Cr, suggests recovery is underway. The Piotroski score of 7/9 is encouraging, and free cash flow of ₹16,246 Cr is positive, but I treat FCF with caution in a bank. The DCF value of ₹254.20 looks absurd against a price of ₹20.03; EV/EBITDA of 1,916.40 is meaningless in a leveraged lender, and if banking were that easy, I would buy the whole bank. Altman Z of 0.41 is normally a distress signal, though for banks it is not a perfect tool. No dividend means the shareholder is entirely dependent on price appreciation and book value compounding. To get me excited, Yes Bank must sustain this turnaround, lift ROE well above 10%, turn sales positive, and operate with clean assets. Until then, my circle of competence says: watch, but do not jump.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer