India's PNB Housing Finance rises as IIFL Securities initiates with 'buy'

Can Fin Homes

26/06/2024 06:05

** Shares of PNB Housing Finance  PNBH.NS  rise as much as
2.9% to 804.30 rupees
    ** IIFL Securities initiates coverage on PNBH with a "buy"
rating and target price of 1,050 rupees, a 34% upside to stock's
last closing price
    ** PNBH set to double the affordable and higher yielding
emerging prime loan book mix to 40% by FY27, aided by focused
verticals with independent branches - IIFL Securities
    ** Adds alongside up-scaling of affordable and emerging
segments, growing mix of non-housing loans and smaller-ticket
prime housing loans to improve profitability 
    ** Brokerage sees interest rate cycle, financial health of
promoter Punjab National Bank  PNBK.NS  as key risks
    ** Avg analyst rating on PNBH is "buy"; peers LIC Housing
Finance  LICH.NS  and Can Fin Homes  CNFH.NS  also rate "buy" 
    ** PNBH median PT at 970 rupees
    ** Stock up ~2% YTD, compared with ~15% and ~43 gains in
CNFH and LICH respectively 


 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))