PNBHOUSING - Fundamental Analysis

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

🏦 Fundamental Stock Analysis: PNB Housing Finance Ltd (PNBHOUSING) Rating: 3.9

🧾 Core Financial Evaluation

Profitability & Returns

ROE of 12.2% and ROCE of 9.44% show decent but not exceptional capital efficiency for an NBFC.

EPS of ₹78.4 is solid and reflects stable earnings.

Earnings Performance

PAT dipped slightly from ₹550 Cr to ₹534 Cr — a mild decline, but YoY growth of 23.3% indicates healthy profit momentum.

Debt & Liquidity

Debt-to-Equity of 3.70 is high — typical in housing finance firms, but warrants caution amid interest rate volatility.

Dividend yield of 0.50% — limited cash return to shareholders.

💰 Valuation & Market Sentiment

Metric Value Interpretation

P/E Ratio 12.9 Undervalued vs. Industry PE of 20.0

PEG Ratio 0.40 Indicates strong value relative to growth

P/B Ratio ~1.55 Fairly valued — price modestly above book

RSI & MACD RSI 30.2, MACD -13.6 Bearish zone — oversold signal, may rebound

DMA Comparison Below both DMA 50 & DMA 200 Short-term weakness, technical pressure

Volume Trends: Current volumes below weekly average → lower conviction in current price action.

Institutional Moves: FII (+2.73%) and DII (+8.11%) additions show strong institutional confidence.

🧠 Business Model & Competitive Edge

Overview: Leading housing finance company backed by PNB, focused on retail and affordable housing loans.

Moat Highlights

Brand strength and parent backing provide credibility and trust.

Well-diversified loan book with geographic and demographic spread.

High leverage tempers flexibility, but improving asset quality and regulatory oversight are positives.

📌 Investment Strategy

Entry Zone Recommendation: Strong entry point if price retraces near ₹940–₹980 — offers margin of safety and technical support near DMA 200.

Long-Term Holding Guidance

Suitable for value-focused investors seeking exposure to financials with turnaround potential.

Watch for debt reduction, consistent PAT growth, and margin improvements.

Bullish institutional activity may prelude a medium-term re-rating if momentum revives.

I can help you contrast it with other housing finance players like LIC Housing or Can Fin Homes, or prepare a visual dashboard of valuation vs. growth—just let me know what you'd like to explore next.

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