⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PNBHOUSING - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | PNBHOUSING | Market Cap | 21,001 Cr. | Current Price | 806 ₹ | High / Low | 1,142 ₹ |
| Stock P/E | 9.35 | Book Value | 690 ₹ | Dividend Yield | 0.62 % | ROCE | 9.46 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 839 ₹ | DMA 200 | 887 ₹ |
| Chg in FII Hold | -1.39 % | Chg in DII Hold | 2.34 % | PAT Qtr | 521 Cr. | PAT Prev Qtr | 626 Cr. |
| RSI | 48.6 | MACD | -21.3 | Volume | 10,50,686 | Avg Vol 1Wk | 9,05,337 |
| Low price | 730 ₹ | High price | 1,142 ₹ | PEG Ratio | 0.28 | Debt to equity | 3.62 |
| 52w Index | 18.6 % | Qtr Profit Var | 10.5 % | EPS | 86.3 ₹ | Industry PE | 14.1 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined to ₹521 Cr. from ₹626 Cr. (-10.5%). ROE (12.3%) and ROCE (9.46%) are moderate, reflecting average efficiency.
- Debt & Liquidity: Debt-to-equity at 3.62 indicates high leverage, typical for housing finance companies, but adds risk in downturns.
- Valuation: P/E of 9.35 is well below industry average (14.1), suggesting undervaluation. P/B ~1.17 indicates fair pricing relative to book value. PEG ratio (0.28) highlights attractive growth-adjusted valuation.
- Technical Indicators: RSI at 48.6 shows neutral momentum; MACD at -21.3 indicates bearish trend. Current price ₹806 is below DMA 50 (₹839) and DMA 200 (₹887), signaling weakness.
🏢 Business Model & Competitive Advantage
- PNB Housing Finance operates in housing loans and mortgage financing, with strong brand backing from PNB.
- Competitive advantage lies in established customer base and brand trust, but high leverage and margin pressure remain concerns.
💡 Entry Zone Recommendation
- Entry zone: ₹780–₹820, near support levels.
- Attractive for long-term investors given undervaluation, but caution advised due to high debt levels.
📈 Long-Term Holding Guidance
- Suitable for long-term holding if housing demand remains strong and leverage is managed effectively.
- Upside potential tied to real estate growth and interest rate environment.
✅ Positive
- Low P/E (9.35) compared to industry average (14.1).
- Dividend yield of 0.62% provides shareholder returns.
- DII holdings increased (+2.34%).
⚠️ Limitation
- High debt-to-equity ratio (3.62).
- Moderate ROE (12.3%) and ROCE (9.46%).
- Stock trading below DMA 50 and DMA 200, showing bearish trend.
📉 Company Negative News
- Quarterly PAT declined from ₹626 Cr. to ₹521 Cr.
- Bearish technical indicators (MACD negative, price below DMA).
- FII holdings reduced (-1.39%).
📈 Company Positive News
- DII holdings increased (+2.34%).
- Valuation attractive compared to peers.
- Dividend yield supports investor confidence.
🏭 Industry
- Housing finance industry P/E at 14.1, higher than PNB Housing’s valuation.
- Sector growth driven by rising housing demand and government support for affordable housing.
🔎 Conclusion
- PNB Housing Finance is undervalued with fair returns but faces high leverage risk and profit decline.
- Entry near ₹780–₹820 is attractive for long-term investors; cautious holding recommended until profitability stabilizes and debt levels improve.