The 7 reports from 3 analysts offering long term price targets
for PNB Housing Finance Ltd. have an average target of 368.00. The consensus estimate
represents an upside of 1.24%
from the last price of 363.50.
Remain watchful of the corporate book asset quality even more PNB Housing Finance (PNBHF) reported strong sequential (QoQ) improvement in overall performance. NII grew by 41.8% QoQ (up 25.4% YoY), driven by a significant expansion in NIM (+86ps QoQ) which came on the back of the upward revision in corporate loan pricing undertaken in 1QFY21 (to the tune of ~100bps). As a result, despite the AUM declining by 2.7% QoQ (down 9.2% YoY), the interest income grew by 8.8% QoQ. The company has also received some benefit on account of declining cost of funds and income on securitization (Rs1.05bn for the quarter). Accordingly, we have increased our yield estimates for the year, leading to a sharp...
Remain wary of NPA risks amid challenging macros PNB Housing Finance (PNBHF) reported NII/PPOP at Rs 4,362mn/Rs4,094mn, 12%/7% better than our estimates. PAT at Rs 2,596mn was better than estimate primarily on account of lower provisioning. AUM declined by 5% YoY and was flat QoQ at Rs835bn. Disbursements were nil in April but picked up in May and further improved in June. Total disbursements for the quarter were Rs6.9bn. Collection efficiency (ex-morat loans) also witnessed improvement and stood at 98.2% (2 days ago) compared to ~96% in April. Sell down process was delayed due to covid led disruptions. The management has guided towards bringing down absolute opex by 5-10% in...
23 July 2020 PNBHOUSI reported 1QFY21 PAT of INR2.6b (v/s est. The beat was driven by stronger PPoP and significantly lower credit cost. AUM remained sequentially stable at INR835b. Given the high leverage, we expect the company to continue to run down its balance sheet until it raises fresh equity capital. Maintain Neutral, with TP of INR210. As disbursements were negligible, AUM remained sequentially unchanged at INR835b. The company did not sell down any loans in the quarter; hence, upfront assignment income was nil v/s INR1.2b YoY. Cost of funds is likely to further decline due to recent MCLR cuts by banks. The GS3 ratio remained stable QoQ at 2.76%. While the company kept Stage 1 and 2 ECL provisions stable, it increased Stage 3 PCR from 36% to 40% QoQ. Collection efficiency stood at 9697% during the quarter and was largely stable each month.
PNB Housing Finance (PNBHF) reported NII/PPOP 11%/6% below our estimate, respectively. NIM, at 2.61%, contracted by 57bps YoY and 37bps QoQ. Given the company's performance over the last few quarters amid rapidly deteriorating asset quality, we were already anticipating a weak quarter. However, the reported numbers have been weaker than our expectations. AUM declined by 3.4% QoQ to Rs833.5bn while on-book loan assets were down 10% YoY and 4% QoQ. In light of capital constraints and building up of asset quality pressures, PNBHF has been resorting to sell-downs. During FY20, the company sold down Rs23.1bn worth of corporate loan assets, which has helped shore up capital ratios without a meaningful profit accretion to the...
15 June 2020 PNBHOUSI reported INR2.4b net loss (v/s est. of INR2.4b PAT) in 4QFY20, driven by higher-than-expected provisions. The company reported provisions of INR7.5b (v/s est. of INR1.4b), including COVID-19-related provisions of INR4.7b. Given the high leverage, we expect the company to continue to run down its balance sheet. We increase our FY21 credit cost estimates by 70bp. Maintain Neutral, with TP of INR190. Given the lockdown in the last week of the quarter, disbursements were muted at INR28b. Interestingly, the retail home loan book declined 5% QoQ. On the other hand, the retail GNPL ratio doubled YoY to 1.
PNB Housing Finance (PNBHF) reported a weak set of numbers in Q3FY20 as asset quality deteriorated on the back of slippages from the developer financing segment.
PNB Housing Finance (PNBHF) reported 3QFY20 results with the key pointers being: (1) Asset quality deteriorated with Stage 3 assets ratio at 1.75% (+128bps YoY, +91bps QoQ) (2) Capital raise expected in Q4FY20; Clarity regarding PNB's status and shareholding (3) Loan book declined 7% YoY and 2% QoQ at Rs692bn; AUM was up 8% YoY, down 4% QoQ (4) NIM declined 8bps YoY, 21bps owing to 3 bps decline in yield and flat cost of borrowing (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNBHF posted 3% YoY NII growth at Rs5,721mn, PPOP growth of 6% YoY at Rs4,777mn and PAT decline of 12% YoY at Rs3,421mn. We have revised our estimates for FY20/FY21/FY22...
PNB Housing Finance (PNBHF) reported 2QFY20 results with the key pointers being: (1) Spread expanded 39 bps YoY to 2.62%; outlook for spreads remains positive (2) Disbursement de-growth was sharper than expected; capital raise pushed back (3) Asset quality was stable with Stage 3 assets ratio at 84%, down 1 bp QoQ and (4) Opex to ATA declined 5 bps YoY to 57 bps, which is also broadly along expected lines (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNBHF posted 36% YoY NII growth at Rs6,268mn, PPOP growth of 47% YoY at Rs5,444mn and PAT growth of 64% YoY at Rs3,421mn. We have revised our estimates for FY20/FY21/FY22 and retained Buy rating on PNBHF, revising...
PNB Housing Finance (PNBHFL) reported muted performance during Q1FY20. Profit for the quarter grew by 11% YoY to Rs 284 cr, impacted due to lower disbursements and higher credit cost. NII for the quarter grew by 45% YoY/2.6% QOQ to Rs 625 cr while margins compressed by 4bps QoQ. Disbursements during the quarter declined by 22% YoY to Rs 7634 cr, primarily due to company's cautious approach towards wholesale loan book which resulted into corporate disbursement de-growth of 81% YoY. PNB housing finance maintained excess liquidity of Rs 5000 cr in form of cash and liquid investments...
PNB Housing Finance (PNBHF) reported 1QFY20 results with the key pointers being: (1) Spread expanded 42 bps YoY to 2.53% with rise in yield outpacing the rise in cost of borrowings (2) Disbursements declined 22% YoY to Rs 76.34bn with a view to maintaining liquidity and staying cautious on wholesale lending (3) Asset quality worsened with Stage 3 assets ratio rising 37 bps QoQ to 0.85% but this is more than built into our conservative model and (4) Opex to ATA declined 7 bps YoY to 56 bps, which is also broadly along expected lines (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNBHF posted 44% YoY NII growth at Rs6,225mn, PPOP growth of 67% YoY at Rs6,498mn...
PNB housing Finance (PNBHF) reported strong core operating performance aided by healthy growth in AUM and marginal improvement in net interest margin (NIM).
PNB Housing Finance (PNBHF) reported 4QFY19 results with the key pointers being: (1) Spread expanded 3 bps QoQ to 2.59% with cost of borrowings easing more than yield (2) Disbursements declined 8% QoQ to Rs 85.62bn with a view to maintaining liquidity (3) Management flagged a stressed pool of Rs 9.08bn but also cited low LGD experience. Asset quality outcomes remain best-in-class with a Stage 3 (GNPA) ratio of 0.48% (4) Opex to ATA declined 3 bps QoQ to 70 bps despite adverse optical impact of IndAS (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNBHF posted 13% YoY NII growth at Rs6,097mn, PPOP growth of 20% YoY at Rs5,552mn and PAT growth of 51% YoY at Rs3,798mn. We have revised our estimates...
PNB Housing Finance (PNBHFL) came out with good set of numbers, ahead of our estimates. Profit for the quarter grew by 51% YoY to Rs 380 cr, driven by lower provisions and better than expected margins. NII for the quarter grew by 13% YoY to Rs 610 cr, led by strong advances growth of 30% YoY. NIM fell by 12 bps QoQ to 3.18% due to decline in yields. Disbursements during Q4FY19 declined by 8% QoQ/2% YoY to Rs 8562 cr. PNB housing finance maintained excess liquidity of Rs 7000 cr in form of cash and liquid investments as on 31st Mar 2019. At the same time, PNBHFL did not face any issues in raising fund...
We recently met with Deepika Gupta Padhi, Head of Investor Relations and Shweta Bansal, Assistant Manager, Investor Relations of PNB Housing Finance (PNBHF) and gleaned incremental insight into the strategy of the company. We share our detailed takeaways below. We revise our estimates for FY20/FY21 and retain Buy rating, revising our target price to Rs931 (from Rs1,140 earlier), valuing the stock at 1.5x FY21E (or 1.7x...
The slowdown in real estate market is peaking now and there is enough demand seen in retail segment. Though, liquidity scenario has improved compared to Q3FY19, sector continues to see challenges due to higher funding costs resulting into pressure on margin (as compared to last year). In light of liquidity issue and lower demand in reality sector, PNBHFL finds itself in a sweet spot. Company has maintained Rs. 6000 cr liquidity in form of cash and investments as on 9MFY19 and expects to close year FY19 with enough liquidity. PNBHFL has well diversified borrowings profile. It borrows 17%, 30% & 17% from...
PNB Housing Finance (PNBHF) reported 3QFY19 results with the key pointers being: (1) Disbursements growth slowed to 1% YoY compared with 14% in 2QFY19 (2) NIM expanded 4 bps YoY to 3.06% and liquidity was managed well (3) Asset quality remains best-in-class with a GNPA ratio of 0.47% (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, PNBHF posted 36% YoY NII growth at Rs5,580mn, PPOP growth of 33% YoY at Rs5,117mn and PAT growth of 32% YoY at Rs3,030mn. We have revised our estimates for FY19/FY20/FY21 and retained Buy rating...
PNB Housing Finances (PNBHF) 3QFY19 PAT increased 32% YoY to INR3.0b (14% beat). The beat was largely driven by higher-than-expected upfront income on loan assignment and MTM on the treasury book. Despite a tough and volatile environment, PNBHF disbursed INR93b worth of loans (+1% YoY). Repayment rate (annualized) continues to decline and hit a 24 January 2019 multi-quarter low of 21%, largely due to lower balance transfers in our view. As a result, AUM grew a healthy 38% to INR797b. PNBHF sold down INR27.1b worth of loans in the quarter, compared to INR31b in the previous quarter. The company recorded an upfront income of INR1.5b in 3QFY19 v/s INR617m in 2QFY19. The key negative surprise in the quarter came from loan spreads (calculated), which declined 17bp QoQ to a multi-quarter low of 1.77%. This was on account of ~60bp QoQ increase in cost of funds partially offset by ~40bp increase in loan yield.
