Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Hold PNB Housing; target of Rs 770: Arihant Capital

Arihant Capital recommended hold rating on PNB Housing with a target price of Rs 770 in its research report dated August 01, 2019.

August 02, 2019 / 03:12 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Arihant Capital 's research report on PNB Housing

PNB Housing Finance (PNBHFL) reported muted performance during Q1FY20. Profit for the quarter grew by 11% YoY to Rs 284 cr,  impacted due to lower disbursements and higher credit cost. NII for the quarter grew by 45% YoY/2.6% QOQ to Rs 625 cr while  margins compressed by 4bps QoQ. Disbursements during the quarter declined by 22% YoY to Rs 7634 cr, primarily due to company’s  cautious approach towards wholesale loan book which resulted into corporate disbursement de-growth of 81% YoY. PNB housing  finance maintained excess liquidity of Rs 5000 cr in form of cash and liquid investments as on 30th Jun 2019. AUM growth was strong
at 29% YoY to Rs 88,333 cr driven by retail housing and construction finance portfolio. Asset quality took a hit with stage 3 assets at 0.85% vs. 0.48% QoQ.

Outlook

Asset quality deterioration was mainly due to a corporate loan of Rs 150 cr slipped during the quarter and seasonality effect. We have a
Hold rating on the stock with a target price of Rs 770 per share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 2, 2019 03:12 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347