Motilal Oswal - MOSL: Morning India (10/April/17)-1. Yes Bank (Re-rating led by diversification and balance sheet granularity); 2. Info Edge India; 3. Fuel or Engines (Economy)

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Motilal Oswal

Team Research

MOSL: Morning India (10/April/17)-1. Yes Bank (Re-rating led by diversification and balance sheet granularity); 2. Info Edge India; 3. Fuel or Engines (Economy)

MOrning India (10/April/17): 1. Yes Bank (Re-rating led by diversification and balance sheet granularity); 2. Info Edge India; 3. Fuel or Engines (Economy)

Todayâ€™s top research idea

YES BANK: Re-rating led by diversification and balance sheet granularity; Robust capitalization | 2x+ system growth | Best-in-class return ratios

Recent capital raise of INR49b has added ~300bp to YESâ€™ CET1 (~13%). With incremental market share of 3.5%+, aggressive roll-out of retail/SME products and strong corporate relationships, will drive loan CAGR (FY17-20) of 28%.
We expect balance sheet granularity to increase led by higher share of retail loans (45% by FY20) and CASA ratio improvement (40% by FY20) owing to strong branch expansion and a complete retail product suite.
YESâ€™ credit appraisal is amongst the best with GNPLs less than 1% in a challenging environment, despite clocking strong loan/PAT CAGR of 23/28% over FY11-16.
Led by robust BV CAGR of 23% (highest in the system), superior RoEs of 20%+, strong asset quality and increased balance sheet granularity, we believe YES will bridge valuation gap v/s peers.

10/04/2017 20 EN

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Team Research

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MOSL: Morning India (10/April/17)-1. Yes Bank (Re-rating led by diversification and balance sheet granularity); 2. Info Edge India; 3. Fuel or Engines (Economy)

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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