PNBHOUSING - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | PNBHOUSING | Market Cap | 27,244 Cr. | Current Price | 1,046 ₹ | High / Low | 1,142 ₹ |
| Stock P/E | 11.7 | Book Value | 738 ₹ | Dividend Yield | 0.48 % | ROCE | 9.46 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 890 ₹ | DMA 200 | 888 ₹ |
| Chg in FII Hold | -0.62 % | Chg in DII Hold | 1.05 % | PAT Qtr | 649 Cr. | PAT Prev Qtr | 521 Cr. |
| RSI | 75.0 | MACD | 62.8 | Volume | 15,62,450 | Avg Vol 1Wk | 16,29,702 |
| Low price | 730 ₹ | High price | 1,142 ₹ | PEG Ratio | 0.35 | Debt to equity | 2.76 |
| 52w Index | 76.7 % | Qtr Profit Var | 14.4 % | EPS | 89.4 ₹ | Industry PE | 15.1 |
📊 PNBHOUSING shows moderate fundamentals with ROE at 12.3% and ROCE at 9.46%, reflecting average capital efficiency. EPS of 89.4 ₹ supports earnings visibility, and the PEG ratio of 0.35 indicates undervaluation relative to growth. The P/E ratio of 11.7 is below the industry average of 15.1, suggesting attractive valuation. However, the debt-to-equity ratio of 2.76 is high, raising leverage concerns. Dividend yield is modest at 0.48%. Technical indicators show strong momentum (MACD 62.8, RSI 75.0), but overbought conditions may limit near-term upside.
💰 Ideal Entry Price Zone: 1,000 ₹ – 1,020 ₹, near support levels and below overbought RSI zone.
📈 Long-Term Holding Guidance: Suitable for medium-to-long-term investors (3–5 years) if debt levels reduce and ROCE improves. Current valuations are attractive, but strict risk management is required due to leverage. Partial profit booking near 1,120–1,140 ₹ is advisable if fundamentals do not improve further.
✅ Positive
- Low P/E (11.7) compared to industry average (15.1), indicating undervaluation.
- EPS of 89.4 ₹ supports earnings strength.
- PEG ratio of 0.35 highlights growth potential at fair valuation.
- DII holdings increased (+1.05%), showing domestic institutional confidence.
⚠️ Limitation
- High debt-to-equity ratio (2.76) raises financial risk.
- ROCE (9.46%) remains modest compared to peers.
- RSI at 75.0 indicates overbought conditions.
📉 Company Negative News
- FII holdings reduced (-0.62%), showing foreign investor caution.
- High leverage increases financial vulnerability.
📈 Company Positive News
- PAT improved from 521 Cr. to 649 Cr. (+14.4%).
- DII inflows reflect strong domestic support.
- Price recovery from 52-week low (730 ₹).
🏭 Industry
- Industry P/E at 15.1, higher than PNBHOUSING’s 11.7, making the stock relatively attractive.
- Housing finance sector supported by rising demand and government incentives.
🔎 Conclusion
PNBHOUSING is moderately strong with undervaluation and earnings growth, but high debt and overbought RSI pose risks. Entry near 1,000–1,020 ₹ offers upside toward 1,120–1,140 ₹. Suitable for medium-term investors with strict stop-loss discipline and monitoring of leverage reduction.