Buy Yes Bank with a upside target of 395

A lot of fundamental analysts including me have been quite bullish on Yes Bank because of the following reasons

• Available at quite cheap valuation of rs 260 odd levels after making a high of 380 & trading at low PE multiple levels
• Bank's long term focus on Corporate clients only has helped it to maintain quite sustainable margins 
• The bank is reporting a CAGR growth rate of 35% year on year basis which makes our price target of may be 3 times in coming 5 years 

Just have a look at the robust growth of business and stock price year by year

Date	Net Profit	Stock Price
March 2007	94	143
March 2008	200	161
March 2009	303	50
March 2010	477	257
March 2011	727	320

Looking at the robust growth in the net profit year after year and low PE Ratio, one should have this stock in his investment option.

The total balance sheet of the bank is 52000 Crores with CASA deposit account for only 10% of its deposits. The bank is looking for a massive expansion ahead by opening up 750 new branches at posh locations of different cities

Yes Bank is expected to grow at 35% CAGR which will make its FY15 total business at Rs 2.25 Lakhs Crores

Buy the stock with the long term view with a prce target of 396-400 in a year & Rs 1000 in next 3 years

Regards

Mayank Gupta
mayankportfoliomanager@yahoo.com

Wealthbazaar.in