PNB Housing Finance Ltd. share price target

PNBHOUSI reported a 3QFY21 PAT of INR2.3b (flat YoY; 13% beat). The beat was driven by stronger PPOP (13% above our estimate). Opex fell ~26%/7% YoY/ QoQ. Credit cost stood at INR2.6b v/s our estimate of INR2.3b. In 9MFY21, PPOP/PAT fell 6%/10% YoY to INR15.3b/INR8b....

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.

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 stellar set of numbers in terms of operating performance and AUM growth given multiple sectoral headwinds.

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 strong core operating performance aided by healthy growth in AUM and marginal improvement in net interest margin (NIM).

PNB Housing Finance (PNBHF) continued to report stellar set of numbers despite headwinds in the sector.

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...

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...