PNB Housing Finance share jumps 9% on Q4 beat; stock price targets & more

PNB Housing Finance Ltd shares climbed 9 per cent in Tuesday's trade after the housing finance company reported a beat on Q4 profit, led by recoveries from its retail written-off pool. Stock analysts are positive on the stock post March quarter earnings, as they see recoveries to continue in FY26. 

JM Financial said PNB Housing Finance's PAT saw a beat of 8 per cent over its our estimates, leading to return of asset (RoA) and return on equity (RoE) of 2.8 per cent and 13 per cent, during the quarter. Net interest income (NII) grew 17 per cent, as net interest margin (NIM) remained largely stable QoQ at 3.75 per cent.

"We believe that i) strong growth trajectory led by affordable and emerging markets and corporate disbursements ii) steady branch expansion, and iii) consistent recoveries from its write-off pool while maintaining asset quality would aid in healthy average RoA of 2.5 per cent over FY25-27E. We maintain BUY on the stock valuing the company at 1.4x FY27E BV entailing a target of Rs 1,150," JM said.

Following the development, the PNB Housing stock rose 9.33 per cent to hit a high of Rs 1,078.90 on BSE.

The Managing Director & CEO for PNB Housing Finance, Girish Kousgi, said his HFC surpassed its stated guidance for the year FY25 on growth, asset quality and profitability. For the year, the retail loan asset grew 18.2 per cent YoY to Rs 74,802 crore as on March 31, 2025, which was supported by growth in the affordable and emerging markets segment. 

The affordable segment loan asset crossed a significant milestone of Rs 5,000 crore during the financial year. With focus on collections across buckets, the Gross NPA improved to 1.08 per cent as on March 31, 2025, compared with 1.50 per cent in the year-ago period, the CEO said. 

MOFSL said PNB Housing delivered an all-round healthy performance in 4Q and FY25, driven by robust execution leading to healthy loan growth, asset quality improvement, margin expansion, and strong profitability. It said teh HFC is well-positioned to maintain this earnings momentum and deliver on its articulated guidance in the coming years.

"The stock trades at 1.2x FY27E P/BV, with a favorable risk-reward profile that could support a re-rating in the valuation multiple as investor confidence grows in the company’s consistent execution in retail (across prime, emerging, and affordable segments)," it said while suggesting a target of Rs 1,230 on the stock.