Crorepati minting machine! No stopping glorious Yes Bank march; search for Rana Kapoor successor expedited

Indian markets today reversed their previous losses, with Sensex gaining over 700 points so far. But it was Yes Bank that grabbed the spotlight as its share price skyrocketed. The bank continued to remain among the best performers and this is so since start of October, and today was no different. The bank was trading at Rs 250.70 per piece, up by Rs 10.70 or 4.46%. However, in early hours of trading session, the bank has surged by more than 6% by touching intraday high of Rs 254.60 per piece on BSE.

Yes Bank, which took the most beating even till end of September, has become the most preferred stock of investors. In fact, when markets were trading on negative note this week,  it was Yes Bank that was defying the market trend.

Interestingly, in just two weeks time, Yes Bank share price has made many crorepatis and lakhpatis too of investors who showed faith in the bank and invested in it even when it was at its lowest.

The way Yes Bank shares have performed, this would be among the fastest short term gains for any investor, provided he or she had taken the opportunity.

On September 28, Yes Bank touched a new low of Rs 166.15 per piece, taking into consideration today’s intraday high, the bank’s share price has actually given a massive 62% return. Even BSE Bankex has not generated anywhere near the kind of gains Yes Bank has provided as the index has plunged by 11% during the same time.

Today, the investors had even more reasons to be hopeful of netting further profit as the bank expedited the search for their chief Rana Kapoor’s successor.
In a notification to BSE, Yes Bank said, “The Bank had invited proposals from four Global Leadership Advisory Firms specializing in BFSI to assist the 'Search & Selection Committee' in identifying a suitable successor to Rana Kapoor, MD & CEO, YES BANK.”

All members of the 'Search & Selection Committee' headed by Brahm Dutt and comprising of Lt. General Dr. Mukesh Sabharwal (Retd.) -Independent Director (Member- NRC), Subhash Chander Kalia, Non-Executive Non-Independent Director (Member- NRC), T S Vijayan, past Chairman of IRDAI and LIC and O P Bhatt, past Chairman, State Bank of India were present in the meeting.

Based on assessments and presentations made by these Global Advisory Firms, Yes Bank said, “the 'Search & Selection Committee' has mandated Korn Ferry to assist the Committee in evaluating candidates.”

If you failed to take the opportunity of Yes Bank two weeks ago, well it is still not too late, as the bank is expected to soar further.

In Equirus view, "Yes Bank (YES) has seen a sharper-than-expected correction post the non-extension of Rana Kapoor’s tenure, which we believe is overdone with YES very attractively priced at 1.4x FY20E ABV."

Analysts at Equirus explained that, two closely tracked events for YES in the near term would be: (a) Results of FY18 RBI’s annual review wherein management is confident of an improved divergence figure vis-à-vis last year with credit cost contained at 50bps-70bps and (b) selection of its new MD & CEO with the search committee likely to send a list of three shortlisted candidates by Dec’18.

Equirus added, “While near term concerns would remain an overhang, we believe this is an opportune time to accumulate the stock from a 2-3 year perspective. Retain LONG with a revised Sep’19 TP of Rs 360 (Mar’19 TP: Rs 425) based on a 10-year avg. trailing P/BV multiple of 2.5x.”