PNB Housing Finance shares jumped over 3% in early trade after global brokerage firm Goldman Sachs upgraded the stock to a ‘Buy’ rating, setting a target price of ₹1,184. The upgrade comes amid improved visibility around loan growth and profitability, signaling a potential turning point for Indian financials.
Goldman Sachs highlighted that the prolonged “muddle through” phase in the sector may be nearing its end. Despite expectations of a 100bps rate cut, the brokerage noted early signs of improvement in asset quality and profitability, particularly in pre-provision operating profit return on assets (PPOP-ROAs).
While Goldman anticipates near-term sluggishness in credit growth along with continued pressure on net interest margins (NIMs) and credit costs, it believes that earnings downgrades may bottom out by the first half of FY26. This could offer a compelling entry point for long-term investors.
PNB Housing Finance shares opened at ₹957.00, hitting a high of ₹979.00 and a low of ₹948.05 in today’s trading session. The stock remains volatile but has shown resilience over the past year, with a 52-week high of ₹1,202.20 and a low of ₹616.60.
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