Strategies for Holding or Selling Yes Bank Shares: A Guide for Investors
Understanding Your Current Position with Yes Bank Shares
On July 23, 2024, at 15:30 PM, Yes Bank is trading at Rs 24.95 per share. This recent move upward is an interesting development for your 1,000 shares acquired at Rs 22. If you considered averaging the purchase during the price dip below Rs 15–17, you’ve already seen a significant recovery.
If you missed this opportunity earlier, it's important to note that relying on averaging prices after a significant drop is a nuanced strategy. In such situations, holding the shares might be more beneficial unless the company’s fundamentals or market conditions change drastically.
Factors Influencing Your Decision
Yes Bank has recently shown improvements in its governance and financial health. The company’s profitability has increased, and Non-Performing Asset (NPA) ratios have reduced. These positive indicators suggest that holding onto the shares until they reach Rs 50 could be a prudent strategy. Additionally, during dips in the stock price, you might find it advantageous to buy more shares.
The Dilemma of Holding Yes Bank Shares
Evaluating whether to keep, buy more, or sell Yes Bank shares requires you to look at various factors. Some investors may find it challenging to accept that a wrong decision has been made, but holding onto a failed investment can cause more harm than good. It’s often better to sell and minimize losses than to continue holding onto shares that are unlikely to yield significant returns.
Decision Factors and Investment Considerations
Your decision to hold, buy more, or sell Yes Bank shares should depend on the financial health of the company, market conditions, and your personal financial goals. The price of Yes Bank shares has fluctuated significantly in the past months. April 27, 2023, marked a low at Rs 15.50, and the company's shares have touched a high of around Rs 25 in the last six months. Subsequently, the price has dipped back to Rs 15.50.
Two primary reasons for the share price fluctuations include the end of the lock-in period and the significant decline in annualized profits. According to our research and analysis of the company's financials, we do not expect multi-bagger returns by 2025. Instead, we anticipate the stock to trade within a range of Rs 13 to Rs 25.
The upward price movement of Yes Bank shares is largely dependent on positive quarterly results. Given this, holding onto the stock is contingent on the company's ability to deliver consistent, if not exceptional, financial performance. Additionally, the support level for Yes Bank shares is around Rs 13, and many traders use this price range for short-term profit bookings, indicating volatility.
Conclusion and Next Steps
With 1,000 shares of Yes Bank, you’ve already lost about 30% of your investment capital. Deciding to hold, buy more, or sell these shares depends on your specific situation, risk tolerance, and future outlook for the company.
Invest with patience and strategic decision-making. Yes Bank's share price recovery can provide an opportunity to invest more in the shares during dips, or to sell at a higher price. Whatever your decision, ensure it aligns with your overall investment strategy and risk profile.