PNB Housing Finance share price jumps 11% after Q2 results. Should you buy?

  • PNB Housing Finance shares have rallied 37% in the past one year period and have given multibagger returns of 173% in two years.

Ankit Gohel
Published25 Oct 2024, 09:33 AM IST
PNB Housing Finance's net interest income (NII) increased 1.2% YoY to  <span class='webrupee'>₹</span>669 crore.
PNB Housing Finance’s net interest income (NII) increased 1.2% YoY to ₹669 crore.

PNB Housing Finance share price jumped nearly 11% on Friday after the company reported strong earnings for the quarter ended September 2024. PNB Housing Finance shares rallied as much as 10.90% to 1035.00 apiece on the BSE.

PNB Housing Finance reported a 23% year-on-year (YoY) rise in net profit at 470 crore for the second quarter of FY25.

The company’s net interest income (NII) increased by 1.2% YoY to 669 crore. NII growth on a quarterly basis stood at 2.7%. The lower growth in NII was due to the declining impact of the corporate book, the company said.

Net interest margin (NIM) in Q2FY25 decreased to 3.68% from 3.95% in the year-ago period. NIM in Q1FY25 stood at 3.65%.

Gross NPA declined by 54 bps to 1.24% as on September 30, 2024, compared with 1.78% as on September 30, 2023. Capital risk adequacy ratio stood at 29.13%, while Tier-I was at 28.06%.

PNB Housing Finance said its disbursements during Q2FY25 grew by 27.8% YoY and 21.5% quarter-on-quarter (QoQ) to 5,341 crore. The retail segment grew by 28.2% YoY and 22.4% QoQ to 5,341 crore.

Loan asset increased by 14.2% YoY and 3.8% QoQ to 69,501 crore in Q2. Retail loans grew by 16.2% YoY to 67,970 crore, while corporate loans stood at 1,531 crore, down 35.7% YoY.

Assets under management (AUM) of the company increased by 10.8% YoY and 3.0% QoQ to 74,724 crore at the end of the September quarter.

Should you buy PNB Housing Finance stock?

PNB Housing Finance stock price has been on a steady upward momentum this year. The stock has gained nearly 25% in three months and over 24% year-to-date (YTD). PNB Housing Finance shares have rallied 37% in the past one-year period and have given multibagger returns of 173% in two years.

“After a sharp correction from 1,200 to below 900 recently, PNB Housing Finance shares have found good support around 820 - 850 levels. The trend in the stock looks bullish and the downside seems limited,” said Ruchit Jain, Lead Research Analyst at 5paisa.

According to Jain, any dip towards 850 - 880 levels in PNB Housing Finance shares could be used as a buying opportunity for a target of 1,050 - 1,070 levels.

At 9:30 am, PNB Housing Finance shares were trading 5.96% higher at 988.85 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:25 Oct 2024, 09:33 AM IST
Business NewsMarketsStock MarketsPNB Housing Finance share price jumps 11% after Q2 results. Should you buy?

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