PNBHOUSING - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Analysis

Profitability

ROE: 12.3% and ROCE: 9.46% — moderate returns, typical for housing finance firms.

EPS: ₹78.6 — solid earnings per share, supporting valuation.

Quarterly PAT: ₹532 Cr vs ₹567 Cr — slight dip, but overall stable performance.

Quarterly Profit Variation: +21.2% — healthy year-over-year growth.

Balance Sheet & Cash Flow

Debt-to-equity: 3.70 — high leverage, expected in NBFCs but needs monitoring.

Dividend Yield: 0.58% — modest, not a major income play.

Cash flows are likely stable given consistent PAT and sector norms.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 11.0 Significantly undervalued vs industry PE of 19.9

P/B Ratio ~1.33 Attractive — below sector average

PEG Ratio 0.33 Deeply undervalued relative to growth

Intrinsic Value ₹1,149–₹1,375 (est.) Current price undervalued by ~33–60%

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🧠 Business Model & Competitive Edge

Company Profile: PNB Housing Finance is a leading housing finance company in India, backed by Punjab National Bank.

Segments

Home loans, loan against property, and construction finance.

Focus on retail lending and affordable housing.

Moat

Strong brand trust via PNB.

Expanding digital footprint and diversified portfolio.

Recent improvements in asset quality and profitability.

📈 Technical & Sentiment Overview

RSI: 61.0 — mildly bullish, nearing overbought zone.

MACD: -4.51 — bearish crossover, short-term weakness.

DMA 50 & 200: Price below both — technical correction phase.

Volume: Above weekly average — strong investor interest.

FII/DII Holding: Positive uptick — institutional confidence rising.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹800–₹850 — near support and well below intrinsic value.

Holding Strategy

Strong long-term potential driven by housing demand and financial inclusion.

Price target for 2025: ₹810–₹880

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; long-term target (2030): ₹1,500–₹2,500

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Ideal for patient investors seeking value in financials.

PNB Housing Finance is quietly turning into a value gem — low valuation, improving fundamentals, and a massive addressable market. If you're building a portfolio with financial sector exposure, this one deserves a closer look. Want to dive into its loan book quality or compare it with peers like LIC Housing or Can Fin Homes?

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www.alphaspread.com

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moneymintidea.com

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