IIFL Securities's Stock Idea: Buy Pnb Housing Fin with Target Rs 880

IIFL Securities issued a buy call on PNB Housing Finance on August 12, with a target price of Rs 880. The current market price of the stock is Rs 843.95, indicating a potential upside of around 4.3%. The recommendation is based on the company's strong growth prospects, with its net interest income growing by 25% year-on-year. Additionally, the company's asset quality remains stable, with a low gross non-performing asset ratio of 1.9%.

About Pnb Housing Fin:

PNB Housing Finance Limited (PNBHF) is a housing finance company based in New Delhi, India. It is a subsidiary of Punjab National Bank (PNB) and a registered housing finance company (HFC) with the National Housing Bank (NHB). PNBHF offers a range of housing loan products, including home loans, balance transfer loans, and loan against property. It also provides loans for construction, renovation, and extension of residential properties. The company has a wide distribution network with over 100 branches and over 2,000 loan centers across India. It serves individuals, families, and businesses with their housing finance needs.

52 Week Price Trend:

PNB Housing Finance (PNBHOUSING) currently trades at Rs 843.95, close to its 52-week high of Rs 913.95. Despite facing recent declines, the stock remains well above its 52-week low of Rs 383.06. This indicates a strong long-term uptrend, suggesting potential for further gains. However, investors should note the recent correction and monitor market conditions closely before making any investment decisions.

Stratzy's MOST Analysis:

The MOST framework assigns a BBB rating to PNB Housing, indicating medium fundamental risks. Management, Outlook, Safety, and Trend are evaluated, with each pillar contributing to the overall score. BBB suggests that PNB Housing demonstrates stable management, a positive industry outlook, adequate safety margins, and an upward trend. This indicates that the company's fundamentals are generally sound, with moderate potential for risk or volatility.

Fundamental and Technical information provided in this blog were last updated on 10 Aug, 2024

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