Buy PNB Housing; target of Rs 1200: Motilal Oswal

Motilal Oswal is bullish on PNB Housing has recommended buy rating on the stock with a target price of Rs 1200 in its research report dated January 22, 2026.

Broker Research

January 28, 2026 / 14:43 IST

Buy

Motilal Oswal's research report on PNB Housing

PNB Housing’s (PNBHF) 3QFY26 PAT grew 8% YoY to ~INR5.2b (5% miss). NII rose ~11% YoY to ~INR7.7b (in line). Other income declined ~10% QoQ to ~INR1b, owing to lower fee income and investment income. Opex rose ~17% YoY to ~INR2.4b (up 10% QoQ). This included a one-time gratuity provision of INR60m on account of the new labor code. PPOP grew ~8% YoY to INR6.3b (5% miss), largely attributable to higher employee expenses and lower non-interest income. Credit costs (net of recoveries) resulted in a provision write-back of ~INR405m (in line). This resulted in net credit costs of -20bp (PQ: -57bp and PY: -20bp).

Outlook

The stock trades at 1.1x FY27E P/BV. We expect PNBHF to post a CAGR of 18%/14% in loans/PAT over FY26-28E and ~2.4%/~13% RoA/RoE in FY28E. Reiterate BUY with a TP of INR1,200 (based on 1.4x Dec’27E BVPS).

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