PNB Housing Finance Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 12553.89 Crore) operating in NBFC sector.
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
While FY20-22E will always be looked upon as years of consolidation for PNBHF, the brokerage expects the company to start growing its loan book by 5-10% YoY from FY23E onwards. While it could claim to have front-loaded most of the provisions due to any contingencies that could arise from COVID-19, the brokerage expects that its credit cost will continue to remain elevated at ~1.5% in FY22E as well. It has not factored in an equity capital raise in estimates as yet and would do so once there is more clarity on the issue post the SAT judgment. In the near-term, it expects PNBHF to deliver 10-12% RoE in FY22E/FY23E. However, asset quality risks from any newer COVID-19 waves persist.
Promoter/FII Holdings
Promoters held 32.6 per cent stake in the company as of June 30, 2021, while FIIs held 25.9 per cent, DIIs 3 per cent and public and others 38.6 per cent.
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