Goldman Sachs has maintained a ‘Buy’ rating on PNB Housing Finance, with a target price of ₹1,386, implying significant upside from the current market price of ₹779.90. The brokerage believes that despite recent leadership changes, profitability prospects remain intact and the stock offers a compelling entry point after an overdone de-rating.
CEO exit not a major overhang; focus shifts to fundamentals
While the recent exit of the MD & CEO may keep investor attention focused on leadership transition in the short term, Goldman Sachs noted that PNBH’s operational momentum continues. The brokerage highlighted that valuation is likely near a floor, supported by strong fundamentals.
Strong earnings outlook and steady growth metrics
Goldman Sachs expects PNBH to deliver a 15% earnings CAGR over FY25–FY28, underpinned by:
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Stable asset quality, which has held firm even amid industry pressures
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Improvement in lending spreads, which expanded to 2.2% in Q1FY26, up 4 bps sequentially despite rising competition
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Robust disbursement growth, particularly in the affordable housing (+30% YoY) and emerging markets segment (+32% YoY)
These factors, Goldman believes, validate the company’s strong execution and disciplined lending strategy.
Brokerage view summary:
| Brokerage | Rating | Target Price | Key Commentary |
|---|---|---|---|
| Goldman Sachs | Buy | ₹1,386 | Profitability outlook intact, earnings CAGR of 15% seen through FY28, valuation near floor |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.
