PNB Housing Finance Q2 Review: Inline; New CEO Appointment Expected Soon — Motilal Oswal Hikes Target Price

PNB Housing Finance shared that the Board-led CEO selection process is underway, with formal disclosure expected soon. In the interim, the current senior leadership team has ensured seamless business continuity and steady performance. Management reiterated that the company’s core mortgage strategy remains firmly in place, with no significant strategic changes expected under the new CEO..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..Motilal Oswal Report.PNB Housing Finance Ltd. delivered an in-line performance in Q2 FY26, although earnings were a beat primarily due to the expected credit loss release of ~Rs 700 million from the foreclosure of a standard corporate account. Disbursements were marginally soft, impacted by slower growth in the prime segment, while net interest margin moderated during the quarter owing to lower investment yields. Asset quality was stable, and sustained recoveries from the written-off pool resulted in write-backs for the sixth consecutive quarter.PNB Housing Finance is focused on maintaining profitability through disciplined margin management, driven by a strategic shift toward higher-yielding affordable and emerging housing segments, coupled with a cautious resumption of corporate disbursements. Its commitment to controlled growth and prudent asset quality management positions it favorably for sustained execution. The stock trades at 1.1x FY27E price/book-value. .We believe that the franchise has its inherent strengths, but the Board will need to instill greater investor confidence by appointing a suitable successor who closely aligns with the articulated strategy of the company. Reiterate Buy with a target price of Rs 1,080 (based on 1.2x Sep’27E book value per share)..Key risks: the inability to drive NIM expansion in FY27 amid aggressive competition in mortgages,subsequent seasoning in the affordable/emerging loan book leading to asset quality deterioration and elevated credit costs, anddelay or challenges in appointing a suitable successor for the CEO position..Click on the attachment to read the full report:.Tata Steel Gets Motilal Oswal's 'Buy' Upgrade, Sees 19% Upside — Check Target Price.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.

PNB Housing Finance Q2 Review: Inline; New CEO Appointment Expected Soon — Motilal Oswal Hikes Target Price

Motilal Oswal maintains 'Buy' rating on PNB Housing Finance, hikes target price

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