Shares of PNB Housing Finance jumped 10% to their intraday high of Rs 1,085.40 on the BSE on Tuesday after the company reported a 25% year-on-year (YoY) rise in net profit for the fourth quarter to Rs 550 crore, driven by steady business growth and improved asset quality.
For the full financial year, the company posted a 28% YoY increase in net profit, rising to Rs 1,936 crore from Rs 1,508 crore.
The lender’s net interest margin (NIM) for the quarter improved to 3.75%, up from 3.70% in the previous quarter and 3.65% a year earlier. Net interest income rose 16% YoY to Rs 734 crore.
The company's assets under management (AUM) grew 13% YoY to Rs 80,397 crore at the end of the fiscal year. On-book loan assets rose 16% to Rs 75,765 crore, while retail loans expanded 18% to Rs 74,802 crore.
PNB Housing’s gross non-performing assets (NPA) ratio declined by 42 basis points YoY to 1.08% as of March 31. It also recovered Rs 336 crore from previously written-off loans.
PNB Housing Finance Share Target Price
Following the Q4 results, domestic brokerage firm HDFC Securities maintained an ‘Add’ rating on the stock with a target price of Rs 1,025.
The brokerage noted that PNB Housing’s Q4FY25 earnings beat estimates, largely due to lower-than-expected provisioning and higher other income. Loan growth remained healthy at 16% YoY, led by an 18% rise in retail loans, although corporate disbursements stayed muted. The company's focus on higher-yielding segments, including affordable housing and non-home loans (like loan against property or LAPs), is expected to support margins in the current interest rate environment.
However, operating expenses are likely to remain elevated due to ongoing investments, and credit costs are expected to normalize by FY27, which could impact overall returns.
Also read: Tata Tech shares slide 6% after TPG likely offloads 3.95% stake via bulk deal
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
For the full financial year, the company posted a 28% YoY increase in net profit, rising to Rs 1,936 crore from Rs 1,508 crore.
The lender’s net interest margin (NIM) for the quarter improved to 3.75%, up from 3.70% in the previous quarter and 3.65% a year earlier. Net interest income rose 16% YoY to Rs 734 crore.
The company's assets under management (AUM) grew 13% YoY to Rs 80,397 crore at the end of the fiscal year. On-book loan assets rose 16% to Rs 75,765 crore, while retail loans expanded 18% to Rs 74,802 crore.
PNB Housing’s gross non-performing assets (NPA) ratio declined by 42 basis points YoY to 1.08% as of March 31. It also recovered Rs 336 crore from previously written-off loans.
PNB Housing Finance Share Target Price
Following the Q4 results, domestic brokerage firm HDFC Securities maintained an ‘Add’ rating on the stock with a target price of Rs 1,025.
The brokerage noted that PNB Housing’s Q4FY25 earnings beat estimates, largely due to lower-than-expected provisioning and higher other income. Loan growth remained healthy at 16% YoY, led by an 18% rise in retail loans, although corporate disbursements stayed muted. The company's focus on higher-yielding segments, including affordable housing and non-home loans (like loan against property or LAPs), is expected to support margins in the current interest rate environment.
However, operating expenses are likely to remain elevated due to ongoing investments, and credit costs are expected to normalize by FY27, which could impact overall returns.
Also read: Tata Tech shares slide 6% after TPG likely offloads 3.95% stake via bulk deal
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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