The share price of PNB Housing Finance displayed significant volatility during the early trading hours on BSE today, October 25, in response to the company’s financial results for the September quarter. The stock opened at ₹728.95, surpassing the previous close of ₹718.30, and ascended nearly 2% to ₹730.40. Nevertheless, it swiftly reversed these gains and experienced a decline of over 2%, falling to ₹701.30 within the initial 15 minutes of the trading session. By around 9:30 am, the stock was down by 1.94%, trading at ₹704.35 on BSE.
PNB Housing Finance achieved its 52-week high of ₹784.40 on October 19 this year and recorded its 52-week low of ₹340.68 on November 21 last year. Since reaching its 52-week low, the stock has surged by approximately 111%, based on the stock’s previous session closing price of ₹718.30.
Regarding PNB Housing Finance’s Q2 results, the company reported a 45.9% increase in net profit, reaching ₹383 crore for Q2FY24, compared to ₹262.6 crore during the corresponding period last year. The revenue from operations for the second quarter of the current fiscal stood at ₹1,777.8 crore, reflecting a growth of 5.5% in comparison to ₹1,684.4 crore in the same period last year. PNB Housing Finance Limited stated in a regulatory filing that the non-banking finance company’s (NBFC’s) total income for the September quarter rose to ₹1,779.4 crore, as opposed to ₹1,683.43 crore in the corresponding period of the prior fiscal year.
Numerous brokerage firms expressed optimism about the stock following the NBFC’s Q2 earnings report. Motilal Oswal Financial Services upgraded the stock to a buy and raised the target price to ₹950, signifying a potential upside of 33%. The firm stated, “The equity capital raised through a rights issue has brought in the much-needed confidence capital, which could result in a rating upgrade from credit rating agencies.” Nirmal Bang, another brokerage, believed that the company’s strategy of emphasizing salaried and affordable housing segments could stimulate growth. Among global brokerage firms, Morgan Stanley maintained an ‘overweight’ view on PNB Housing Finance with a target price of ₹880, citing improved funding terms, rising loan growth, and diminished risk perception as factors contributing to the stock’s re-rating in the past year.
