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.
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.
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