PNB Housing Finance Stock Hits Upper Circuit Post Strong Q4 Result, Dividend Declaration; Time To Buy?

PNB Housing Finance Shares: PNB Housing Finance shares hit upper circuit on Tuesday, April 29, a day after announcing 27% higher Q4 net profit and declaring dividend. The housing finance company stock witnessed significant trading volatility during the opening session.

PNB Housing Finance shares opened higher at Rs 1055 per share on BSE and touch an intraday high mark of Rs 1085.4 apiece on Tuesday. The company scrip was trading 6.4% higher at Rs 1050 apiece on BSE at 11 am. The company scrip witnessed a spurt in volume by more than 12.31 times on BSE early on Tuesday.

PNB Housing Finance Q4 Result

PNB Housing Finance's profit after tax surged by 28% Year on Year (YoY) to Rs 1936 crore in the March quarter of FY25 against Rs 1508 crore reported in the year ago period. Its loan disbursement increased by 25% year on year (YoY) to Rs 21,972 crore during the previous financial year. During the quarter under review, the finance company had disbursed 23% higher loans compared with the same period in previous financial year.

Its gross NPA fell by 42 bps to 1.08% as on 31 st Mar 2025 as compared to 1.50% as on 31 st Mar 2024. Its capital risk adequacy ratio came in at 29.38% as on 31 st Mar 2025. PNB Housing Finance company's loan asset improved by 16% annually and 5% sequentially to Rs 75,765 crore as on 31 st Mar 2025.

PNB Housing Finance Dividend

The finance company had announced a final dividend of Rs 5 per share with a face value of Rs 10 for its eligible shareholders on Monday. "The Board of Directors have recommended a dividend of ₹ 5 per equity share (Previous Year ₹ Nil per equity share). This is subject to the approval of shareholders at the ensuing Annual General Meeting," read PNB Housing Finance's press release issued on Monday.

PNB Housing Finance Q4 Result Upbeat; Should You Buy?

PNB Housing Finance (also known as PNBHF)'s all-round healthy performance was supported by retail loan growth, net interest margin expansion (NIM), sustained improvement in asset quality, and recovery in written-off pool, noted Motilal Oswal in its report on Tuesday.

The brokerage firm reiterated its 'Buy' rating for PNB Housing Finance with a target price of Rs 1230 per share.

"We continue to believe in our thesis of a transformation at PNBHF and in the management's ability to drive RoA improvement, supported by: 1) healthy retail loan CAGR of ~18%; 2) NIM expansion from FY27 onwards; and 3) benign credit costs on the back of sustained recoveries from the written-off pool," noted Motilal Oswal in its report.

"We expect PNBHF to deliver a CAGR of 19% each in loans/PAT over FY25-27E and ~2.5%/14% RoA/RoE in FY27. Reiterate BUY with a TP of INR1,230 (based on 1.5x Mar'27E BVPS)," the brokerage added.

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