PNB Housing Finance Stock Surges Over 14% on Bullish Outlook and Rating Upgrades
Shares of PNB Housing Finance witnessed a significant surge of over 14 percent on Monday, April 1, 2024, driven by a bullish outlook and recent rating upgrades. The stock soared to a day’s high of ₹720.40, marking a substantial increase in value.
Global brokerage firm Morgan Stanley upgraded the stock to ‘overweight’ with a target price of ₹970, indicating a potential upside of nearly 35 percent. This upgrade follows positive revisions by rating agencies ICRA and CARE, highlighting improvements in the company’s asset quality.
The stock has shown impressive growth, with a surge of almost 79 percent from its 52-week low and a gain of almost 48 percent in the last year. Despite a slight dip in performance in 2024 YTD, the stock remains attractive to investors with its valuation standing at 1x FY25 P/B and 9x P/E.
CARE Ratings also upgraded PNB Housing’s rating to ‘AA+’ with a ‘stable’ outlook, citing the company’s improving asset quality and strong market position. Similarly, ICRA raised the debt instrument rating to ‘ICRA AA+ (Stable)’, emphasizing the company’s consistent enhancement in its credit profile.
In a competitive mortgage finance sector, PNB Housing’s ability to sustain net interest margin, enhance operational efficiency, and manage credit costs effectively has been highlighted as key factors for its success. Investors are advised to consult with certified experts before making any investment decisions.
Overall, the positive outlook and rating upgrades have positioned PNB Housing Finance as a promising investment opportunity in the market.
