PNB Housing Finance shares jump 7% to hit one-year high on strong Q1 FY24 results; check details

Shares of PNB Housing Finance Ltd rose sharply in Monday's trade to hit their one-year high level after the company posted strong results for the June 2023 quarter (Q1 FY24). The company's profit after tax increased by 48 per cent, year-on-year (YoY) and 24 per cent quarter-on-quarter (QoQ) to Rs 347 crore.

"The disbursements during Q1 FY24 grew by 7 per cent YoY to Rs 3,686 crore. Retail disbursement grew by 8 per cent YoY to Rs 3,667 crore; 99 per cent of total disbursements. Asset under Management (AUM) grew by 2 per cent YoY to Rs 67,340 crore as on June 30, 2023. The loan asset stood grew by 5 per cent YoY and 2 per cent QoQ to Rs 60,395 crore. Retail loans grew by 11 per cent YoY and 3 per cent QoQ to Rs 56,978 crore. Corporate loans are at Rs 3,416 crore as on June 30, 2023, reduced by 45 per cent," PNB Housing stated in a exchange filing.

In terms of asset quality, gross bad loans or NPAs came at 3.76 per cent as on June 30, 2023, as compared to 6.35 per cent YoY and 3.83 per cent QoQ.

The company's CRAR (Capital to Risk Asset Ratio) increased to 29.93 per cent as on June 30, 2023, as compared to 23.91 per cent YoY.

Girish Kousgi, Managing Director & CEO said, "The first quarter of this financial year has kick-started on a positive note, as we have achieved growth across all key business and financial parameters. Owing to our ongoing efforts in the retail business, our Loan book crossed Rs 60,000 crore mark. We have also witnessed improvement in asset quality, resulting in higher profitability. This quarter the Company's annualised ROA is at 2.07 per cent, highest in a decade."

The stock today jumped 7.11 per cent to hit a 52-week high of Rs 696 over its previous close of Rs 649.80.

On technical setup, the stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 78.14. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 15.97 against a price-to-book (P/B) value of 1.54.

The scrip has an average target price of Rs 570, Trendlyne data showed, suggesting a potential downside of 17 per cent. It has a one-year beta of 1.18, indicating high volatility on the counter.

Also read: Hot stocks on July 24, 2023: YES Bank, Suzlon Energy, Mazagon Dock, SJVN and more

Also read: Stocks that share market analysts recommended on July 24, 2023: Infosys, Coforge, Tata Communications, ITC