PNB - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🏦 Fundamental Stock Analysis: Punjab National Bank (PNB) Rating: 3.8

📊 Core Financial Metrics

Profitability

ROE: 15.2% — fairly strong for a PSU bank, signaling efficient equity utilization.

ROCE: 6.32% — modest, typical for banks due to asset-heavy balance sheets.

EPS: ₹16.1 — supports current valuation level.

Earnings Growth

PAT Qtr: ₹4,989 Cr, +49.3% QoQ growth — strong uptick in profitability.

Rising quarterly profits suggest operational momentum.

Balance Sheet Health

Debt-to-equity: 12.6 — expected in banking sector context, not alarming.

Dividend Yield: 2.65% — decent for income-seeking investors.

💸 Valuation Overview

Metric Value Interpretation

P/E Ratio 6.80 Undervalued relative to industry (7.49)

P/B Ratio ~0.94 Trading below book value — potential for re-rating

PEG Ratio 0.10 Strong indicator of undervaluation given growth

RSI / MACD RSI 49.1, MACD 0.33 Neutral momentum; room for uptrend

DMA Alignment ₹109 vs DMA50 ₹108 / DMA200 ₹104 Price holding above trend lines — bullish undertone

Volume: ~1.37 Cr — active participation, steady interest.

52W Position: 56.4% — relatively mid-range; offers room for upside.

🧠 Business Model & Moat

Profile: One of India’s largest public sector banks with a vast rural and urban footprint.

Moat

Legacy brand and distribution scale.

Access to low-cost CASA deposits.

Digital expansion and retail lending shift enhance efficiency.

Challenges

Asset quality improvement is an ongoing concern.

FII outflow (–0.19%) suggests cautious sentiment, though DII inflow (+0.39%) offsets some of that.

📍 Entry Zone & Investment Guidance

Suggested Entry Zone: ₹104–₹109 — near DMA support, suitable for accumulation.

Holding View

Attractive valuation; PEG and P/B both signal upside potential.

Best suited for medium- to long-term investors betting on PSU banking turnaround.

Monitor NPA trends, credit growth, and rate cycle dynamics.

If you'd like, I can run a comparative matrix against other PSU banks like SBI or Bank of Baroda to size up relative attractiveness. Just give me a nod.

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