The share price of PNB Housing Finance has been on an uptrend since it reported quarterly results for the fourth quarter of FY26. Following this, JM Financial has raised its target price to Rs 1,150 from Rs 950, implying an upside of 17.5% from the current market price.
JM Financial on PNB Housing: Recoveries to aid profitability
The brokerage house maintained its ‘Buy’ rating on PNB Housing Finance after it reported a strong quarter. It finds valuation attractive at the P/B ratio of 1x for FY28, offering upside for.
“We believe that the re-entry into construction or developer finance, along with a rising share of affordable plus emerging segments (management expects 50% of the book over the next 2-3 years), should aid yields, while sustained recoveries could further aid profitability,” said JM Financial.
JM Financial on PNB Housing: Strong momentum
For FY27, the company’s management guided for strong momentum across key parameters. First, the loan book is likely to surge over Rs 1 lakh crore, led by retail loan book growth of 18-20%, compared to 16% in FY26. Secondly, NIMs are expected in the range of 3.5-3.65% as against. 3.6% in FY26. Lastly, credit costs of negative 15-20 basis points, as against -47 bps in FY26, supported by sustained recoveries.
In Q4FY26, the housing lender’s earnings outperformance was led by improving growth momentum and elevated recoveries, resulting in continued negative credit costs. NII grew 11% YoY, aided by marginal expansion in calc.
NIMs, while disbursements accelerated 36% YoY, driving AUM growth of 13% YoY with broad-based traction across retail segments. Corporate disbursements also resumed in line with management guidance, while asset quality trends also improved.
PNB Housing Finance share price performance
The share price of PNB Housing Finance has risen 10.4% in the last five trading sessions. The stock has given a return of 34% in the past one month and 13.4% in the last six months. PNB Housing Finance’s share price has changed a little over the past one year.
PNB Housing Finance Q3FY26
The company reported a net profit growth of 19% YoY to around Rs 660 crore in the fourth quarter of FY26. For FY26, net profit rose 18% YoY to Rs 2,290 crore.
Net interest income (NII) increased almost 11% YoY to roughly Rs 810 crore. However, other income declined around 10% YoY to Rs 120 crore, while operating expenses increased 17% YoY to around Rs 250 crore.
Pre-provision operating profit (PPOP) grew 5% YoY to Rs 680 crore. For FY26, PPOP rose 11% YoY to Rs 2,580 crore.