PNB Housing Finance Can Rally 33% Driven By Affordable, EM Vertical, Says Nirmal Bang — Maintains 'Buy'

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Motilal Oswal Report

PNB Housing Finance Ltd. is confident of achieving a retail loan growth of ~17% in FY25, driven by affordable/ emerging market segments.

Expect net interest margin to improve to ~4% supported by growth in high-yield segments. Opex to remain elevated as the company opens new branches.

Asset quality trend remains stable and we expect write-backs to continue.

Reiterate Buy with an unchanged target price of Rs 1,100 (1.4 times Dec’26E adjusted book value per share). Premium over five-year average P/ABV of 0.9 times is justified given the shift towards affordable housing/ EM and strong execution on asset quality.

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