Broking Firm Places Buy On Midcap Stock, Sees 16% Potential Upside, Jumps 10.87% In 1 Week

Nirmal Bang has placed a Buy on PNB Housing Finance Ltd. (PNB HF) for a target price of Rs. 618/share. The stock can give a potential upside of up to 16% considering the given target price and the current market price.

PNB HF is a leading NBFC operating in the Housing finance industry. It is a midcap company with a market capitalisation of Rs. 13,902.46 crore.

Confident about growth and improvement in asset quality

Nirmal Bang said, "We recently hosted the management of PNB Housing Finance, represented by Mr. Girish Kousgi - MD & CEO; Mr. Vinay Gupta - CFO and Mrs. Deepika Gupta Padhi - Head IR & Treasury as a part of NBIE's two-day investor conference. The management highlighted that demand trends remain healthy and it does not see a challenge in sustaining growth. The management's emphasis is on prudently expanding the balance sheet. Its focus is to grow the Affordable Housing book aggressively and to grow the Retail book to Rs1trn going forward."

It added, "The company has set up different verticals for collection to increase efficiency, resulting in overall improvement in the asset quality. The management reiterated that the asset quality improvement trajectory is likely to continue going forward. Moreover, the management remains positive about maintaining NIM/Spread of 3.5%/2.5%."

Furthermore, "We continue to remain positive about PNB HF and have increased our target multiple to 1.15x (FY25E ABVPS) on the back of growth visibility and improving asset quality. We maintain BUY with a target price (TP) of Rs618."

Stock Outlook

The last traded share price of PNB HF is Rs.535.65/share. Its 52 week high is Rs. 547.85/share and 52 week low is Rs. 265.04/share, respectively. The stock jumped 10.87% in 1 week and 12.31% in 1 month, respectively. It gave 62.42% in 1 year and 163.54% in 3 years, respectively. It gave 53.91% negative return in 5 years.

Disclaimer - The stock has been picked from the brokerage report of Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.