PNB Housing Finance share price tumbled more than 8 percent intraday on January 24 after the company posted its December quarter numbers.
The company has posted 22 percent de-growth in its Q3FY20 net profit at Rs 237 crore versus Rs 303 crore, while NII was up 1.4 percent at Rs 566 crore versus Rs 558 crore, YoY.
The company’s revenue was flat at Rs 2,075 crore, while tax expense was at Rs 61.2 crore versus Rs 138.6 crore, YoY.
Research house Jefferies has maintained hold rating on the stock and raised target to Rs 525 from Rs 505 per share.
The company’s NII growth & provisions disappointed, while gross NPA rose sharply, led by rises in retail & corporate NPAs, said Jefferies.
The proposed equity issuance could ease gearing issues and still see challenges to loan growth, it added.
The company’s stressed asset pool is stable, but a few new accounts slipped to stage 2 in Q3.
Jefferies see a risk of more slippages in the developer book and cut FY20-21 estimates by 6-23 percent.
Morgan Stanley has maintained equal-weight rating on the stock with a target at Rs 500 per share.
According to reseach house both retail & corporate NPLs continued to climb, meanwhile near-term trajectory looks weak.
At 09:20 hrs PNB Housing Finance was quoting at Rs 498.40, down Rs 43.90, or 8.10 percent on the BSE.
[“source=moneycontrol”]
