NEW DELHI: Shares of YES Bank lurched sharply lower- suffering a massive loss of 30 per cent on NSE- in morning trade on Tuesday after it disappointed the Street with its March quarter numbers.
The private lender on Friday reported a maiden loss of Rs 1,506.64 crore for the quarter ended March 31 on a spike in provisions and contingencies.
This was sharply in contrast with market estimates as analysts in an ET Now poll had estimated a profit of Rs 1,050 crore.
The bank's provisions jumped to Rs 3,661.70 crore in Q4 from Rs 399.64 crore in the year-ago period.
Several analysts have downgraded YES Bank and cut target price after the lender reported its first-ever quarterly loss but the biggest cut has come from Macquarie, which double downgraded the stock to 'underperform' and cut target price by 40 per cent to Rs 165-one of the lowest on the Street.Macquarie said it has been constructive over the last eight years on YES Bank's ability to thrive in a risky business segment like structured finance but admitted that they got the call wrong.
Besides Macquarie, other brokerages such as BoB Capital and Emkay Global have also downgraded the stock.
Brokerage Elara Capital downgraded the stock to 's ell' with a target price of Rs 192.
"Given the likely longer gestation period and elevated credit cost, we reduce our earnings estimates by 53 per cent for FY20 and by 41 per cent for FY21.
in view of the sudden change in asset quality post the transition to a new CEO, we turn cautious and downgrade our stock rating to Sell from Buy with a revised target price of Rs 192 from Rs 362," said the brokerage.Shares of YES Bank traded 25 per cent down at Rs 178 around 10 am on NSE.