PNB Housing Finance Ltd. share price target

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....

The Deposit portfolio grew by 35% to INR 10,025 crore as on 30th June, 2017 from INR 7,436 crore as on 30th June, 2016. Cost of funds decreased by 39 bps sequentially Rs 26,022 cr to 6.6%. Borrowings for this quarter were Rs.39564 cr vs. 35657 cr QoQ. Borrowings Rs 167 cr portfolio was majorly funded by NCDs (40.9%), Deposits(25.3%), Commercial paper...

PNB Housing Finance Ltd is the fifth largest HFC in India by loan portfolio as of September 30, 2015 with the second largest amount of public deposits in an HFC in India as of March 31, 2015. Incorporated in 1988, PNB Housing Finance Ltd, a subsidiary of Punjab National Bank offers housing loans to individuals and corporate bodies for the purchase, construction, extension or improvement of residential properties or for the purchase of residential plots, and nonhousing loans in the form of loans against property to property-owning customers through mortgages over their existing property and any additional security, if required. Company's target customers for housing loans are salaried customers, whose main source of income is salary from their employment, and self-employed customers, whose main source of income is their profession or their business. Visit chittorgarh.com for more detail. They also offer housing loans in the form of construction finance loans to real estate developers of residential housing. The company has Pan...

PNB housing has over 25 years of experience in the Indian housing finance industry. The company is fifth largest HFC in India by loan portfolio as of September 30, 2015 with the second largest amount of public deposits in an HFC in India as of March 31, 2015, according to the IMaCS Report. Issue PNB housing is also the fastest growing HFC among the leading HFCs in India as of March 31, 2015, according to the IMaCS Report, with our loan portfolio growing at a CAGR of 61.81% from QIB 39,696.63 million as of March 31, 2012 to 168,193.17 million as of March 31, 2015. As of March 31, 2016, the loan portfolio has grown to 271,772.68 million. The recent growth in loan portfolio and operations reflects the continued rapid growth in the housing finance industry in India, comNIB...

To augment the bank's capital base to meet its future capital requirements due to expected growth of the bank's assets. In addition, the listing of equity shares will enhance the visibility and...

PNB Housing Finance (PNBH) has been one of the fastest growing Housing Finance Companies and is currently the 5th largest player in India. Strong Brand name of PNB & efficient management has helped in growing the business much ahead of industry. With 49% stake being held by Pvt Equity Major Carlyle group, PNBH is all set to scale up its operations. Strong management with fresh capital should help maintaining the growth: Mr Sanjay Gupta was appointed as the MD of PNBH in 2010. Having worked with MNCs like AIG, ABN Amro Bank & HDFC Ltd, he along with the newly hired...

Fifth largest HFC in India and the fastest growing HFC among the leading HFCs in India: With 25 years of experience, the company is the fifth largest HFC in India by loan portfolio as of September 30, 2015 with the second largest amount of deposits in an HFC in India as of March 31, 2015, according to the IMaCS Report. It is also the fastest growing HFC among the leading HFCs in India as of March 31, 2015, according to the IMaCS Report, with its loan portfolio growing at a CAGR of 61.81% from Rs.39,69.66 Cr as of March 31, 2012 to Rs.168,19.31cr. on as of March 31, 2015. As of June 30, 2016, its loan portfolio had grown to Rs.309,00.64 Cr.. The recent growth in its loan portfolio and its operations reflects the continued rapid growth in the...

Strong recent growth rate (~60% CAGR FY14-FY16) that is bound to continue albeit at a more moderated pace, operating leverage advantage over medium term (24 to 94bps opex/avg. assets for our coverage universe vs. 133bps for PNB Housing, bound to decline), a healthy housing and non-housing mix (70:30), and a well-diversified borrowing profile with the cost advantage of a AAA rated company. The company also has a robust origination to disbursal model with the requisite risk management structures which gives the company confidence to grow at the extremely fast pace that it has been growing. This in our opinion broadly sums up PNB Housing's growth story over the next few years and it is definitely attractive....

PNB Housing Finance Ltd. is a subsidiary of Punjab National Bank (PNB), which holds 51% of share capital in the company. PNB Housing provides housing loans to individuals and corporate bodies for construction, purchase, repair and upgradation of houses. It also provides loan for commercial space, loan against property and loan for purchase of residential plots. The company is the fifth largest Housing Finance Company (HFC) in India by loan portfolio as of September 30, 2015 with the second largest amount of public deposits in an HFC in India as of March 31, 2015, according to the IMaCS Report. It conducts its...