Yes Bank share price jumps 6% as Carlyle, Advent International to invest $1
时间:2024-06-26 20:32:33 阅读(143)
Yes Bank share price soared 5.7 per cent to Rs 15.80 apiece on BSE on Monday after the bank announced that the private equity funds Carlyle and Advent International will invest USD 1.12 billion. Technical analysts say that any major move in Yes Bank is likely only above 15.85. “So all up moves should be used to exit. At present levels, no fresh buying is advised. In fact, any slightest of the move on the higher side must be used to exit,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com
Both the global PE funds will be acquiring a 10 per cent stake each in Yes Bank, which had to be bailed out in a Reserve Bank of India (RBI) and government-led reconstruction scheme for want of capital buffers and after the then management failed to sell the bank’s story to investors. “YES Bank will raise the funds through a combination of about $640 million in shares and about $475 million in share warrants. It will offer 3.69 billion shares to affiliates of Carlyle Group and Advent. The company will also issue 2.56 billion share warrants at a price of Rs 14.82 per warrant to both the investors,” the private lender said in a statement.
Despite positive news of Yes Bank planning to raise capital by selling its stake in the PE firms, AR Ramachandran, Co-founder & Trainer, Tips2Trades believes this rally should be used to book profits in previous buy positions. “As broader markets get overbought, we believe Yes Bank could again retest 12.7-13 levels in the very near term,” Ramachandran told FinancialExpress.com
In the last five days, Yes Bank stock price has gained 8 per cent, and 20 per cent in one month. On a year-to-date (YTD) basis, the stock has added 7.5 per cent and more than 13 per cent in the last six months. In the trading volume terms, a total of 4.03 shares exchanged hands on BSE, while 17.64 crore stocks traded on National Stock Exchange, so far in the day.
The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.
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- uidance range. Ebit margins at 18.2% were down 140bps and missed estimates due to higher-than-expected employee costs. Profits at Rs 39.8 bn were up 11% y-o-y and were slightly ahead of estimates due to a $21m gain booked on the buyback of senior notes in Q4.
Services miss estimates; Software better than expected: Services business grew 0.6% q-o-q cc and missed HCLT’s Q3FY23 guidance, mainly due to a 3.8% q-o-q cc decline in the ER&D segment. Growth in the IT&BS segment moderated slightly to 1.6% q-o-qcc but was in line with estimates. BFSI and Life Sciences were the key growth drivers, while communications were the drag among verticals. Growth was led by the Americas region, while Europe and ROW posted declines.
Decline in bookings reflects delays in decision-making: HCLT won 10 large deals in services and three large deals in Software with net-new deal TCV of $2.1bn, down 8% y-o-y. Deal wins were driven by the services portfolio, were centered on cost optimisation and vendor consolidation and came mainly from BFSI, manufacturing and Life Sciences verticals. Management highlighted a ramp-down in discretionary spending in Hitech and communications verticals but pointed to a strong deal pipeline.
FY24 guidance in line with expectations: HCLT has guided for 6-8% y-o-y growth for overall business and 6.5-8.5% y-o-y cc growth in services segment and 18-19% margins in FY24—all in line with our assumptions. We maintain our FY24-25 cc revenue growth and margin estimates and expect HCLT to deliver 6.5% cc revenue growth and 18.4% margins in FY24. However, we lower our earnings forecasts by 2% to factor the higher tax rate indicated by the management.
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Raise PT: HCLT has fared better in Q4, particularly in North America and BFSI, unlike its peers. However, rising demand uncertainty as a US recession nears remains a concern. HCLT’s stock at CMP trades at 17x PE and offers a 5% yield, which in our view should limit downsides and derating. Hence, we raise our target PE to 17x (16x earlier) and raise our PT to Rs 1,125, offering 8% potential upside.
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