PNB Housing Finance Ltd. share price target

PNB Housing Finance (PNBHF) reported yet another strong quarter in its Q4FY18 financial results. AUM growth exceeded our...

PNB Housing Finance's (PNBHF) 4QFY18 PAT grew robustly by 50% YoY toINR2.2b, but missed our estimate by 5%, largely due to higher-than-expected opex. Excluding one-off expense of INR130m related to securitization, PAT would have been largely in line with estimates. AUM grew 50% YoY/8% QoQ to INR623b. Interestingly, PNBHF sold downINR31b worth of loans during the quarter, taking the total off-BS loan book to INR52b (8% of AUM).Repayment rate (annualized) was 28.8% in 4QFY18v/s 24.4% in the year-ago period.

PNB Housing Finance Ltd Q3FY18 results comment Operating Income grew by 9.33% to Rs. 1438.49 Cr in Q3FY18 when compared to the previous quarter. Also, it grew by 44.03% when compared with Q3FY17.

PNB Housing Finance (PNBHF) reported a strong set of numbers in its Q3FY18 financial results. Disbursement grew at 110% to INR 9,276cr, leading 53% YoY growth in AUM to INR 57,668cr. PNBHF...

PNB Housing Finance's (PNBHF) 3QFY18 PAT grew at a robust 58% YoY toINR2.18b, led by strong AUM growth, improvement in margins, and lower C/I ratio. Disbursements more than doubled YoY to INR93b (off a low base). Consequently, AUM increased 53% YoY to INR577b - 5% ahead of our estimate of INR549b. AUM mix continues to inch closer towards non-core loans (LAP, construction finance, etc). Share of these loans increased 160bpQoQ and 400bp YoY to 42.8%. While calculated spreads (on AUM) came in sequentially flat at 2.08%, the management has lowered its spread guidance from 210-225bp earlier to195-210bp due to rising G-Sec yields. It has also guided to the following liability mix: Deposits - 25%, NCD- 45%, CP- 15-18%, Banks ??? 10%+, NHB ???5%.

PNB Housing Finance (PNBHF) is the fastest-growing and fifth-largest housing finance company in India. The companys outstanding AUM is pegged at INR512bn as on H1FY18 and it has ~5% market...

NIM for the quarter came in at 3.15% increasing by 44 Bps from 2.71% YoY. Company's disbursements increased by 44% to Rs 7,385 crore during Q2 FY17-18 from Rs 5107 crore during Q2 FY16-17. Disbursements towards housing loan accounted for 70.6% and non-housing loan at 29.4%. Disbursement for Q1 FY17-18...

PNB Housing Finance (PNBHF)'s operating performance remained strong in 2QFY18, with net profit up 51% YoY, driven by robust AUM growth of 47%. Disbursement growth came in at 45% YoY while the loan book increased 51%, driven by growth in the developer book (59% YoY/18% QoQ) and individual home loans (47% YoY/11% QoQ), while LAP book growth stood at 38% YoY/12% QoQ. Margins expanded 39bps YoY to 3.15% in 2QFY18, driven by a 94bps YoY decline in funding costs and a change in the loan mix towards developer book, LRD and Corporate Term Loan. PNBHF's asset quality remained stable with gross NPLs of 0.34%, while its coverage ratio stood at 24% (vs. 32% in 2QFY17). With aggressive lending...

PNB Housing Finance's (PNBHF) 2QFY18 PAT grew robustly by 51% YoY to INR2.08b, led by its strong AUM growth, YoY improvement in margins and lower C/I ratio (albeit off a high base). Disbursements grew 45% YoY to INR74b. While this is certainly a very strong performance, it was a tad lower than disbursements in 1QFY18, suggesting some impact of RERA, and possibly GST. Generally, the second quarter is seasonally strong in terms of disbursements for an HFC. AUM growth of 47% YoY was in line with estimates. The mix has remained...

Piran Engineer - Research analyst (Piran.Engineer@MotilalOswal.com); +91 22 3980 4393 Alpesh Mehta - Research analyst (Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415 Investors are advised to refer through important disclosures made at the last page of the Research Report....