PNB Housing Finance Shares Upgraded By ICICI Securities — Check Target Price, Potential Upside And More

ICICI Securities has upgraded PNB Housing Finance to ‘Add’ from ‘Hold’, citing valuation comfort and the appointment of a new managing director and chief executive officer as a key positive trigger. The brokerage has retained its target price of Rs 970, implying an upside of about 5% from the current market price of Rs 922.

The upgrade follows the onboarding of Ajai Kumar Shukla as MD & CEO, which ICICI Securities said brings an end to leadership uncertainty at the housing finance company. Shukla has over 30 years of experience in the mortgage industry and has previously headed critical verticals such as sales, credit and risk.

ICICI Securities values the stock at 1.25 times price-to-book value for September 2026, and said management stability and improving profitability underpin its upgraded stance on the stock.

PNB Housing Finance had seen a period of uncertainty after the sudden exit of its former MD Girish Kousgi in July 2025, raising concerns around continuity of strategy and growth momentum. ICICI Securities expects the management transition to be smooth, supported by a strong operational foundation built over the past few years.

With the top management now in place, the brokerage believes PNB Housing Finance is well positioned to deliver on its growth guidance. The company has guided for assets under management (AUM) growth of 17–18% in FY26, while ICICI Securities expects AUM growth of 18% each in FY26 and FY27.

ICICI Securities noted that after strengthening its retail asset franchise over FY24–FY25, PNB Housing Finance has shifted focus toward improving profitability. The company reported its highest quarterly return on equity since FY21, at over 13% by September 2025.

The brokerage expects this to translate into return on assets of 2.5% in FY26 and 2.2% in FY27, and return on equity of 12% and 11%, respectively.

Asset quality trends remain stable, with early bucket delinquencies (30+ days) at 0.22% for loans booked in the last 12 months and 0.61% for loans booked over the last 24 months, indicating better quality of incremental lending.

Retail housing is expected to remain the mainstay of the business, with incremental growth driven by higher-yielding affordable and emerging segments. ICICI Securities said PNB Housing Finance has successfully scaled its affordable housing portfolio despite competitive intensity, while maintaining robust asset quality.

The company has guided to reach Rs 1 lakh crore in AUM by FY27, with a portfolio mix of 15% affordable housing, 20% emerging segments and 65% prime loans.

For FY26, PNB Housing Finance expects net interest margins in the range of 3.6–3.7%, alongside continued improvement in asset quality, supported by a steady decline in gross non-performing assets.