Buy PNB Housing Finance; target of Rs 875: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on PNB Housing Finance

PAT grew 51% YoY to INR3.8b (37% beat) in 4QFY19, driven by better-than-expected margins and lower provision cost. PNBHF continued to calibrate disbursements in 4QFY19 - disbursements declined 8% QoQ/2% YoY to INR86b, largely due to scale-back in LRD segment. AUM growth was healthy at 6% QoQ/36% YoY to INR847b, despite a moderation in disbursement growth, as the repayment rate declined sharply. Spreads (rep) were stable QoQ (-40bp YoY) at 2.6% owing to a reduction in cost of funds by 15bp QoQ to 8.06%. PNBHF continues to maintain adequate liquidity on the balance sheet (INR70b, equivalent to 1.5 months of outflows).

Outlook

We factor in NIM compression of 20bp and a rise in credit cost by 5-10bp. We cut our earnings estimates 3-6% for FY20/21. Maintain Buy with a TP of INR875 (1.5x FY21E).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More