PNB Housing Finance Ltd. share price target

PNB Housing Finance (PNBHF) continued to report strong set of numbers this quarter amid headwinds in the housing finance sector, numbers were in line with our estimates on AUM.

PNB Housing Finance (PNBHF) reported yet another stellar set of numbers in Q1FY19 financial results, exceeding our estimates on AUM and PAT.

9 August 2018 PNBHFs 1QFY19 PAT grew robustly by 38% YoY to INR2.4b, driven by strong AUM growth, margin pressure and lower credit costs. AUM grew 47% YoY/10% QoQ to INR686b. Repayment rate (annualized) was 24.6% in 1QFY19 v/s 29.7% in the year-ago period. While spreads (calc.) declined 10bp YoY to 2.47%, margins shrank ~40bp YoY to 2.65% due to higher leverage. As a result, NII growth was 28% YoY v/s AUM growth of 47% YoY. Spreads are likely to remain under pressure, as the increase in home loan rates may not be able to match the rise in cost of funds, in our view. C/I ratio (calculated) came in at 24.5% v/s average of 22-24% in the past few quarters. We believe that a sustained reduction in the C/I ratio is a must for an improvement in RoE.

Operating Income rose by 9.14% to Rs. 1569.97 Cr in Q4FY18 when compared to the previous quarter. PNB Housing Finance Ltd Q4FY18 results Comment

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...