Investors have been pondering a crucial question: can Yes Bank reclaim its glory days and soar back to Rs400, where it peaked in 2017-18? The rollercoaster ride of Yes Bank’s stock, from Rs10 to Rs400, and back down to under ten, now hovering around Rs28, reflects a tumultuous journey fraught with hope and disappointment.
Many early investors found themselves trapped in the stock due to the absence of an exit plan. As the stock plummeted from Rs400 to Rs10, the lack of timely exits led to substantial losses. Additionally, the issuance of additional shares to raise capital diluted the stock value, hindering its ability to reach previous highs.
A popular Twitter handle Saket1998 highlighted a crucial point: the surge in share capital from Rs460 crores to Rs5700 crores has restrained Yes Bank’s potential market cap, preventing it from scaling previous heights. Despite trading around Rs28, the market values Yes Bank similarly to its peak, emphasizing the significance of market cap in stock evaluation.
The market’s valuation of Yes Bank, comparable to its peak despite trading at a fraction of the price, underscores the importance of understanding market cap in stock assessment. While the possibility of Yes Bank reclaiming its former glory remains uncertain, investors must consider the implications of its market cap when evaluating its potential.
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