Motilal Oswal Securities has maintained a ‘Buy’ rating on PNB Housing Finance with a target price of ₹1,160, citing a strategic shift in the company’s product mix and solid execution. This transition is expected to improve margins, as mix improvements drive NIM expansion. Furthermore, recoveries are projected to keep credit costs low, ensuring financial stability.
The brokerage forecasts an 18% loan CAGR over FY24-FY27, supported by the company’s revised strategy. Profitability is set to rise, with an expected PAT CAGR of 23% over the same period. By FY27E, the company is projected to achieve an RoA of 2.6% and an RoE of 14%.
Trading at 1.2x FY26E, the stock offers significant upside potential, aligning with strong growth fundamentals and favorable market dynamics. PNB Housing Finance is well-poised for robust long-term growth, the report noted.
