'Buy' PNB Housing Finance Shares Maintains Nirmal Bang Post Inline Q1 Results

PNB Housing Finance’s Q1 FY26 results were in line with expectations at the net interest income level. However, at the pre-provision operating profit/PAT level, the results were below our estimates by 6.9%/3.9%..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.PNB Housing Finance Ltd.’s Q1 FY26 results were in line with our expectations at the net interers income level. However, at the pre-provision operating profit/PAT level, the results were below our estimates by 6.9%/3.9%. PAT grew 21.2% YoY to Rs 5.3 billion due to healthy loan growth and negative credit costs.Q1 FY26 disbursements slowed down to 13% YoY as against 23% YoY in Q4 FY25; we built in a loan growth of ~16% in FY26E, driven by the Affordable/EM segments.Expect NIM to sustain at ~3.6% in FY26E supported by growth in high-yield segments. Opex-to-AUM is expected to be at 1%. Asset quality stood stable in 1QFY26 and we expect strong recoveries and benign credit costs to continue. We have projected the loan book and earnings to clock a CAGR of 15.8%/15.5% over FY25-FY27E, which will result in a RoA/RoE of 2.5%/12.8% in FY27E. We reiterate our Buy rating with a target price of Rs 1,300 (same as earlier) valued at 1.6x Jun-27E ABV (same as earlier). The target price multiple premium of 60% over five-year average P/ABV of 1x is justified given the shift toward Affordable Housing/EM and strong execution on asset quality..Click on the attachment to read the full report:.Oberoi Realty Gets 'Neutral' Rating From Motilal Oswal Post Inline Q1 Presales.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' PNB Housing Finance Shares Maintains Nirmal Bang Post Inline Q1 Results

Nirmal Bang reiterates Buy rating on PNB Hosuing Finance with a target price of Rs 1,300

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