Yes Bank: Valuation low; Upside 30%

LKP Securities | Feb. 12, 2018, 4:38 p.m.

Yes Bank remains one of our best bet in the sector, we recommend a BUY rating on the stock with the TP of Rs 424. IT  is likely to be one the key beneficiaries of economic revival.

We anticipate strong asset growth going forward – advances to grow at 30% CAGR over the next 2 yrs. Progress on retail assets/liabilities  of the bank  is  also happening at much faster  pace.

Retail  piece  is  likely  to  make  the  balance  sheet  and  earnings  of  the  bank more granular, stable and less volatile leading to improvement in the valuation multiples.

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