Morgan Stanley has reiterated its overweight rating on PNB Housing Finance with a target price of ₹1,100 per share, implying a potential upside of about 30.9% from the current market price of ₹840.35.
The brokerage highlighted that the company’s management has reiterated its FY26 guidance of 18% retail loan growth, which will be driven primarily by affordable and emerging segments, while the prime segment is expected to grow at single-digit rates. It guided FY26 net interest margin at 3.6–3.7% compared with 3.7% in FY25.
Morgan Stanley noted that borrowing costs are expected to decline in Q2, with a 10 basis point cut in PLR effective July 1, 2025. However, it added that gross stage 3 assets in the affordable segment are expected to rise to 85–90 basis points by March 2026. On the management front, the CEO selection process is underway and is targeted for completion by the end of October 2025.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
