Current Rating and Its Significance
MarketsMOJO assigned Yes Bank Ltd. a 'Hold' rating on 25 August 2025, moving the stock from a previous 'Sell' grade. This adjustment was accompanied by a 10-point increase in the Mojo Score, which now stands at 55.0. The 'Hold' rating suggests that investors should maintain their existing positions rather than aggressively buying or selling the stock at this time. It reflects a balanced view of the bank’s prospects, indicating moderate confidence in its near-term performance while acknowledging certain risks and uncertainties.
Here’s How Yes Bank Ltd. Looks Today
As of 28 December 2025, Yes Bank Ltd. presents a mixed but cautiously optimistic profile. The stock has delivered a year-to-date return of 9.80% and a one-year return of 8.63%, signalling modest gains for investors over the recent period. Despite a slight dip of 0.78% on the day, the broader trend over the past six months shows a positive 7.17% return, supported by a 2.72% gain over the last three months.
Quality Assessment
The bank’s quality grade is assessed as average. This reflects a stable operational foundation but also highlights areas where improvement is needed. Notably, Yes Bank has demonstrated strong long-term fundamental strength, with net profits growing at a compound annual growth rate (CAGR) of 16.30%. This robust growth rate underscores the bank’s ability to expand its profitability over time, a key factor for investors seeking sustainable earnings growth.
Valuation Metrics
Yes Bank’s valuation is considered fair, with a price-to-book (P/B) ratio of 1.4. This valuation level places the stock at a discount relative to its peers’ historical averages, suggesting that the market currently prices the bank conservatively. The return on assets (ROA) stands at 0.7%, which aligns with the fair valuation grade. Additionally, the company’s price/earnings to growth (PEG) ratio is 0.4, indicating that the stock may be undervalued relative to its earnings growth potential. This valuation profile offers a reasonable entry point for investors who prioritise value alongside growth prospects.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Recent Performance
The financial grade for Yes Bank is currently flat, reflecting a period of stabilisation after recent fluctuations. The latest quarterly results show some softness, with interest earned at ₹7,378.84 crore and profit before tax less other income (PBT less OI) at a negative ₹766.76 crore. The credit-deposit ratio for the half-year stands at a relatively low 84.45%, indicating cautious lending practices or slower credit growth. Despite these short-term challenges, the bank’s long-term profit growth remains strong, with net profits rising by 61.4% over the past year.
Technical Outlook
Technically, Yes Bank is mildly bullish. The stock’s recent price movements suggest a cautious upward momentum, supported by institutional investors who hold a significant 65.76% stake in the company. This institutional holding has increased by 0.54% over the previous quarter, signalling confidence from investors with greater analytical resources. Such backing often provides stability and can be a positive indicator for future price performance.
Implications for Investors
The 'Hold' rating on Yes Bank Ltd. advises investors to maintain their current positions while monitoring the stock’s developments closely. The bank’s average quality, fair valuation, flat financial trend, and mildly bullish technicals combine to create a balanced investment case. Investors should weigh the steady long-term profit growth against recent quarterly softness and the cautious credit environment. The current valuation discount and strong institutional interest may offer opportunities for patient investors, but the stock does not yet present a compelling buy signal.
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Summary
In summary, Yes Bank Ltd.’s current 'Hold' rating reflects a nuanced view of the company’s prospects as of 28 December 2025. The bank’s solid long-term profit growth and reasonable valuation are tempered by recent flat financial results and a cautious credit environment. The mildly bullish technical stance and strong institutional ownership provide some support for the stock’s outlook. Investors should consider these factors carefully when making portfolio decisions, recognising that the 'Hold' rating encourages a watchful approach rather than immediate action.
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