Morgan Stanley has reiterated its “Underweight” rating on Punjab National Bank (PNB) stock, assigning a target price of ₹95 per share, reflecting a potential downside of approximately 10% from the current market price (CMP) of ₹105.65.
Key highlights from Morgan Stanley’s analysis:
- Positive Q3FY25 update: Initial updates for Q3FY25 came as a positive surprise, with volume growth exceeding expectations.
- Volume growth strong: The bank showcased stronger-than-anticipated growth in loan and deposit volumes, signaling improved operational performance.
- CD ratio below system average: Despite the strong volume growth, the domestic credit-to-deposit (CD) ratio remained at 72%, which is lower than the system average, suggesting some inefficiency in credit utilization.
Morgan Stanley acknowledges the recent positive developments in PNB’s performance but remains cautious, maintaining an “Underweight” stance due to structural challenges and valuation concerns.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
