The share price of PNB Housing Finance surged by about 11% on Friday on the release of the company’s impressive earnings for the September 2024 quarter. The BSE saw a 10.90% increase in PNB Housing Finance shares, which now trade at ₹1035.00 per.
PNB Housing Finance’s second quarter FY25 net profit increased by 23% year over year (YoY) to ₹470 crore.
The company’s net interest income (NII) rose to ₹669 crore, a 1.2% YoY increase. NII increase was 2.7% every quarter. According to the corporation, the corporate book’s diminishing influence was the cause of the slower development in NII.
The net interest margin (NIM) dropped from 3.95% at the same time last year to 3.68% in Q2FY25. NIM was 3.65% in Q1FY25.
As of September 30, 2024, gross non-performing assets (NPA) were 1.24%, down 54 basis points from September 30, 2023, when they were 1.78%. Tier-I was at 28.06% while the capital risk adequacy ratio was at 29.13%.
According to PNB Housing Finance, its disbursements in Q2FY25 increased by 21.5% QoQ and 27.8% YoY to ₹5,341 crore. To reach ₹5,341 crore, the retail segment rose by 22.4% QoQ and 28.2% YoY.
In Q2, loan assets climbed by 3.8% QoQ and 14.2% YoY to ₹69,501 crore. Corporate loans were down 35.7% YoY at ₹1,531 crore, while retail loans increased 16.2% YoY to ₹67,970 crore.
By the conclusion of the September quarter, the company’s assets under management (AUM) had grown by 3.0% QoQ and 10.8% YoY to ₹74,724 crore.
Should you buy PNB Housing Finance stock?
This year, the stock price of PNB Housing Finance has been steadily rising. The stock is up more than 24% year-to-date (YTD) and has increased by almost 25% in just three months. The stock of PNB Housing Finance has increased 37% in the last year and has produced multi-bagger returns of 173% in the last two years.
“PNB Housing Finance shares have found strong support around ₹820 to 850 levels following a recent steep fall from ₹1,200 to below ₹900. Ruchit Jain, Lead Research Analyst at 5paisa, stated, “The stock’s trend appears bullish, and the downside appears to be limited.”
Jain says that any decline in PNB Housing Finance shares towards ₹850–880 levels could be a chance to buy to reach ₹1,050–1,070 levels.
PNB Housing Finance shares were up 5.96% at ₹988.85 per on the BSE at 9:30 am.
