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Thursday, February 9, 2023

I have 5098 shares of Yes Bank at 299 average, do I need to sell or wait for the raise of share?

This is lot of money. 5098 shares @ Rs 299 means almost 15 lakhs. And with current price of Rs 13 it is around Rs 66k. A huge wealth destroyer…..You should have kept on averaging it in small qts. But any how now you can keep investing it in small qtys .And it is very difficult for bank to reach to Rs 299 levels. Because reaching to that level means its value to be almost 25 times from Current Market price of Rs 13.And with 25 times increase in CMP means also increase in almost 25 times market Cap of Bank. That is from present market cap of Rs 34K Cr to increase to almost 8.5 lakh Cr. Even biggest private sector bank HDFC is around 6.5 lakh Cr. in market Cap.Means it will be even bigger than HDFC ????

Well it can become bigger than HDFC but for that it will take too much time. May be 10–15 years. If you can wait for that time .Remain invested in bank (You can also avg small quantity in between) or you can book your loss and exit from it.

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