Neutral PNB Housing Finance; target of Rs 210: Motilal Oswal

Motilal Oswal 's research report on PNB Housing Finance

PNBHOUSI reported 1QFY21 PAT of INR2.6b (v/s est. of INR600m). The beat was driven by stronger PPoP and significantly lower credit cost. Moratorium rate on the loan book declined to 39% in Phase 2 from 56% in Phase 1. AUM remained sequentially stable at INR835b. Given the high leverage, we expect the company to continue to run down its balance sheet until it raises fresh equity capital.

Outlook

Maintain Neutral, with TP of INR210.

PNB Housing Finance 24072020-moti