PNB Housing Finance Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 10224.26 Crore) operating in NBFC sector.
PNB Housing Finance Ltd. key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Fees & Commission Income and Income From Financial Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1692.88 Crore, down -7.69 % from last quarter Total Income of Rs 1833.90 Crore and down -9.58 % from last year same quarter Total Income of Rs 1872.33 Crore. Company reported net profit after tax of Rs 243.28 Crore in latest quarter.
Investment Rationale
Proposed preferential issue was a notable trigger for re-rating of stock as it would have strengthened balance sheet and supported growth. Stock has almost doubled since the announcement of capital infusion in May 2021. With the deal being called off, stock is likely to derate again to 0.75x FY23E book (from 1x currently) as earnings and growth momentum would derail. The brokerage cuts earnings estimate by >10%/>20% for FY22E/FY23E. Given this adverse development, the brokerage revises target price to Rs485 (earlier: Rs848).
Promoter/FII Holdings
Promoters held 32.59 per cent stake in the company as of 30-Jun-2021, while FIIs owned 25.86 per cent, DIIs 2.96 per cent.
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