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
Subtle changes like moving away from higher-ticket housing and loan against property loans to more granular ticket sizes, focusing more on non-metros, and expanding into tier-III and tier-IV cities for better growth and yields in affordable housing will help PNB Housing Finance Ltd. deliver healthy growth and improvement in profitability.
The management shared that it does not expect any significant increase in opex despite a higher proportion of affordable business (which inherently is opex intensive) because of shared resources across its prime, emerging and affordable segments.
Likewise, despite moving to higher-yielding and riskier segments like self-employed and informal segment customers, PNB Housing Finance remains confident of delivering credit costs of ~30 bp (excluding any recoveries from written-off pool).
While we delve deeper into the capabilities built by PNB Housing Finance in the later section of this report, the exhibition of these capabilities vindicates our thesis that PNB Housing Finance is a strengthening the franchise, wherein the risk-reward is favorable.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
