PNB Housing Finance share price rallied over 4% in early trade on Wednesday after the company reported its Q3 results. PNB Housing Finance shares gained as much as 4.1% to a high of ₹935 apiece on the BSE. However, the stock succumbed to profit booking and was down over 3%
PNB Housing Finance is a non-banking finance company (NBFC) backed by state-run Punjab National Bank (PNB). The NBFC reported a net profit of ₹483 crore in the third quarter of FY25, an increase of 43% compared to ₹338 crore in the same period last year.
The company’s Net Interest Income (NII) in Q3FY25 grew by 17.0% YoY and 4.1% QoQ to ₹695.7 crore. The Net Interest Income for Retail segment was up by 17.4% YoY. Net Interest Margin for the quarter improved to 3.70% from 3.68% QoQ, and from 3.49% YoY.
Pre-provision operating profit in the quarter ended December 2024 increased by 16.1% YoY and 3.7% QoQ to ₹579.5 crore.
Cost of Borrowing is at 7.83% in Q3FY25 as compared to 7.84% in Q2 FY25 and 8.07% in Q3 FY24, PNB Housing Finance said.
The company’s asset quality improved in the December quarter. Gross Non-Performing Assets stood at 1.19% as on 31 December 2024 as compared to 1.24% as on 30 September 2024 and 1.73% as on 31 December 2023.
PNB Housing Finance’s disbursements during Q3FY25 grew by 29.9% YoY and 0.7% QoQ to ₹5,380 crore. Loan Asset rose by 15.4% YoY and 3.5% QoQ to ₹71,917 crore as on 31 December 2024.
“The Company delivered on its growth and profitability parameters with Retail segment growth at 17.5% and Return on Asset at 2.48% (annualised) for 9M FY25. Our affordable segment is performing well and has delivered robust disbursement growth of 127% YoY to ₹920 crore during the quarter. The Company received NHB refinance sanction of ₹5,000 crore and another ECB sanction of USD 100 million in Q3 FY25,” said Girish Kousgi, Managing Director & CEO, PNB Housing Finance.
PNB Housing Finance share price has risen 2.5% in one month and more than 12% in six months. The NBFC stock has given modest returns of 2% in one year. However, PNB Hosing Finance shares have delivered multibagger returns of 100% in two years and over 130% in three years.
JM Financial believes that strong growth trajectory led by affordable and emerging markets and corporate disbursements (starting Q4), steady branch expansion, and consistent recoveries from its write-off pool while maintaining asset quality would aid in healthy average RoA of 2.5% over FY25-27E.
The brokerage firm maintained a ‘Buy’ rating on PNB Housing Finance stock valuing the company at 1.4x FY27E BV entailing a target price of ₹1,200 per share.
On the technical front, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted that the PNB Housing Finance stock price recently peaked at ₹1202, marking a dramatic reversal in the following week, signaling a potential climax.
“Currently, PNB Housing Finance stock is consolidating near its 50-week moving average, a critical support level. This zone is historically significant for triggering upward momentum. With budget announcements on the horizon, a rebound towards ₹950 seems plausible, offering a compelling opportunity for investors eyeing near-term gains,” said Jain.
He suggests looking out for volume cues and macroeconomic triggers to confirm the recovery.
At 9:50 AM, PNB Housing Finance shares were trading 3.59% lower at ₹865.95 apiece on the BSE.
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