PNB - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

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📊 Fundamental Analysis Report

• Stock Code: PNB
• Market Cap: ₹1,41,237 Cr
• Current Price: ₹123
• 52W High/Low: ₹124 / ₹85.5
• EPS: ₹13.6
• Stock P/E: 9.02 vs Industry P/E: 7.98 ✅
• PEG Ratio: 0.13 🟢 (Undervalued)
• Book Value: ₹118 | P/B Ratio: ~1.04 ✅
• ROE: 14.2% | ROCE: 6.30% 🔶
• Debt to Equity: 12.5 ❗ (Highly Leveraged)
• Dividend Yield: 2.36% 💰
• Quarterly PAT: ₹4,904 Cr (↑192.8%)
• RSI: 68.3 | MACD: 2.73 📈

✅ Positive

• Strong EPS and ROE indicate solid profitability and shareholder value.
• Low PEG and P/B ratios suggest attractive valuation.
• Quarterly PAT surged significantly, reflecting operational strength.
• Price trading above DMA 50 and 200 supports bullish technical momentum.
• FII and DII holdings increased, signaling institutional confidence.

⚠️ Limitation

• High debt-to-equity ratio (12.5) indicates significant leverage and financial risk.
• ROCE below 10% suggests moderate capital efficiency.
• RSI nearing overbought zone, caution for short-term entry.

📉 Company Negative News

• High leverage remains a structural concern despite profit growth.

📈 Company Positive News

• Quarterly PAT jumped from ₹1,675 Cr to ₹4,904 Cr, showing strong earnings momentum.
• Stock has delivered a 97% return over the past year, reflecting strong investor sentiment.

🏦 Industry

• PNB operates in the public sector banking space.
• Industry P/E of 7.98 is slightly lower, suggesting PNB trades at a modest premium.
• Sector benefits from credit growth, digital banking expansion, and economic recovery.

🧭 Conclusion

• Entry Zone: ₹110–₹118 (near DMA 50 and RSI neutral)
• Long-Term View: Strong earnings recovery and valuation metrics support long-term holding. Monitor debt levels and accumulate on dips.