
Morgan Stanley has reiterated its ‘Overweight’ rating on PNB Housing Finance, maintaining a target price of ₹1,520. This indicates a potential upside of approximately 69% from the current market price of ₹899.
The brokerage highlighted that the company’s key drivers progressed as expected in Q3 FY25, with higher recoveries driving a beat on performance metrics. Amid rising system-wide asset quality concerns, PNB Housing Finance’s position as a housing finance company is improving, bolstered by recoveries from a large asset pool and faster loan growth.
Morgan Stanley sees these developments contributing to an expansion in the company’s Return on Assets (RoA), further solidifying its growth story in the housing finance segment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.