PAT grew 39% QoQ to INR2.4b in 1QFY23 (46% beat). NII was flat QoQ, but fell 28% YoY to INR3.8b (inline). Credit costs at INR0.5b was below our estimate of INR1.2b. GS3/NS3 declined by ~180bp/90bp QoQ to 6.4%/4.3% (as a percentage of loans), with Stage 3 PCR declining by ~5bp to ~33%. ECL/EAD also fell to 3.5% v/s 4.4% in Mar'22. We now expect the ongoing consolidation process to continue for the whole of FY23, post which PNBHOUSI should start exhibiting AUM growth. While corporate asset qua...
PNB HOUSING FINANCE: Still in consolidation mode (PNBHOUSI IN, Mkt Cap USD1.2b, CMP INR511, TP INR560, 10% Upside, Neutral) PNBHF reported a 2QFY22 PAT of INR2.3b (9% miss), which declined by 25% YoY and 3% QoQ. The miss was driven by lower-than-estimated NII on account of income reversals due to accelerated run-off in the securitized pool of loans and partly mitigated by lower credit costs. NII fell 25% YoY and 9% QoQ to INR4.7b (9% below our estimate of INR5.1b). Provisions at INR1.4b ...
PNB HOUSING FINANCE (IN), a company active in the Consumer Finance industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 2 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date August 27, 2021, the closing price was INR 650.80 and its p...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
PNB HOUSING FINANCE: Retailisation of AUM continues (PNBHOUSI IN, Mkt Cap USD1.6b, CMP INR720, TP INR760, 5% Upside, Neutral) PNBHF reported a PAT of INR2.4b in 1QFY22 (v/s INR2.6b YoY). The 45% beat was driven by lower-than-estimated credit costs (~0.9% annualized) and opex (47%/9% below our estimate). Asset quality deteriorated with Gross Stage 3 increasing by 155bp QoQ to 6%. Few corporate accounts in Stage 2 and under the SICR pool slipped into NPAs. Total restructured pool (under bo...
Seven Directors at PNB Housing Finance Ltd sold after exercising options/sold 14,332 shares at between 716.198INR and 735.000INR. The significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trade...
PNB HOUSING FINANCE: Scaling back in corporate disbursements; High provisions impact earnings (PNBHOUSI IN, Mkt Cap USD1.7b, CMP INR712, TP INR850, 19% Upside, Buy) 1QFY20 PAT grew 11% YoY to INR2.8b (10% miss) in 1QFY20, largely due to higher provision cost. PNBHF continued to calibrate disbursements in 1QFY20 - disbursements declined 11% QoQ/22% YoY to INR76b, largely due to scale-back in corporate lending. The company is funding only to selective existing developers. AUM growth was...
PNB Housing Finance: Disbursement growth moderates further, spreads stable sequentially (PNBHOUSI IN, Mkt Cap USD1.7b, CMP INR698, TP INR875, 25% Upside, Buy) PAT grew 51% YoY to INR3.8b (37% beat) in 4QFY19, driven by better-than-expected margins and lower provision cost. PNBHF continued to calibrate disbursements in 4QFY19 - disbursements declined 8% QoQ/2% YoY to INR86b, largely due to scale-back in LRD segment. AUM growth was healthy at 6% QoQ/36% YoY to INR847b, despite a moderatio...
PNB HOUSING FINANCE: Growth robust, but spreads under pressure (PNBHOUSI IN, Mkt Cap USD2.2b, CMP INR926, TP INR1100, 19% Upside, Buy) PNB Housing Finance’s (PNBHF) 3QFY19 PAT increased 32% YoY to INR3.0b (14% beat). The beat was largely driven by higher-than-expected upfront income on loan assignment and MTM on the treasury book. Despite a tough and volatile environment, PNBHF disbursed INR93b worth of loans (+1% YoY). Repayment rate (annualized) continues to decline and hit a multi-qu...
PNB Housing Finance: Growth slows down; well placed on liquidity front (PNBHOUSI IN, Mkt Cap USD2.0b, CMP INR873, TP INR1215, 39% Upside, Buy) PNB Housing Finance’s (PNBHF) 2QFY19 PAT increased 33% YoY to INR2.5b (4% miss). While PPoP was 4% above our estimates, higher credit costs led to the PAT miss. The quarter was marginally slower on the growth front. Disbursements grew 14% YoY (-14% QoQ) to INR84b. However, the repayment rate (annualized) improved 500bp to 27%. As a result, AUM gro...
PNB Housing Finance | Annual Report Update: Strong growth, improving profitability; Spreads improved in FY18, but outlook challenging (PNBHOUSI IN, Mkt Cap USD3.0b, CMP INR1287, TP INR1520, 18% Upside, Buy) PNB Housing Finance (PNBHOUSI IN) reported a strong 59% PAT growth in FY18 with 50% growth in AUM YoY, ~40bp spread expansion and stable asset quality. Growth has been led by expanding branch count (up from 63 to 84 branches YoY) and higher share of in-house sourcing (up from 59% to ...
PNB Housing Finance: Disbursement growth tepid; Asset quality intact (PNBHOUSI IN, Mkt Cap USD3.2b, CMP INR1304, TP INR1750, 34% Upside, Buy) PNBHF’s 1QFY19 PAT grew robustly by 38% YoY to INR2.4b, driven by strong AUM growth, margin pressure and lower credit costs. AUM grew 47% YoY/10% QoQ to INR686b. Repayment rate (annualized) was 24.6% in 1QFY19 v/s 29.7% in the year-ago period. However, disbursement growth of 25% YoY was the slowest in the past several quarters. While spreads (calc...
PNB HOUSING FINANCE: Growth trajectory robust; incremental spread pressure (PNBHOUSI IN, Mkt Cap USD3.4b, CMP INR1414, TP INR1750, 24% Upside, Buy) PNB Housing Finance's (PNBHF) 4QFY18 PAT grew robustly by 50% YoY to INR2.2b, but missed our estimate by 5%, largely due to higher-than-expected opex. Excluding one-off expense of INR130m related to securitization, PAT would have been largely in line with estimates. AUM grew 50% YoY/8% QoQ to INR623b. Interestingly, PNBHF sold down INR31b wor...
PNB Housing Finance: Positive surprise on growth; incremental spread pressure (PNBHF IN, Mkt Cap USD3.4b, CMP INR1326, TP INR1750, 32% Upside, Buy) PNB Housing Finance’s (PNBHF) 3QFY18 PAT grew at a robust 58% YoY to INR2.18b, led by strong AUM growth, improvement in margins, and lower C/I ratio. Disbursements more than doubled YoY to INR93b (off a low base). Consequently, AUM increased 53% YoY to INR577b – 5% ahead of our estimate of INR549b. AUM mix continues to inch closer towards non-co...
​PNB Housing Finance: Growth story continues(PNBHF IN, Mkt Cap USD3.6b, CMP INR1394, TP INR1750, 25% Upside, Buy)PNB Housing Finance’s (PNBHF) 2QFY18 PAT grew robustly by 51% YoY to INR2.08b, led by its strong AUM growth, YoY improvement in margins and lower C/I ratio (albeit off a high base). Disbursements grew 45% YoY to INR74b. While this is certainly a very strong performance, it was a tad lower than disbursements in 1QFY18, suggesting some impact of RERA, and possibly GST. Generally, th...
​PNB HOUSING FINANCE (INITIATING COVERAGE): In the Big League; A perfect blend of growth with quality(PNBHF IN, Mkt Cap USD3.7b, INR1412, TP INR1675, 19% Upside, Buy)PNB Housing Finance (PNBHF) is a classic turnaround story. While the company was incorporated in 1988 as a wholly-owned subsidiary of Punjab National Bank, the turnaround started two decades later in FY10. This was effected by a change in shareholding (Destimoney Enterprises, a subsidiary of the Carlyle Group, purchased 26% stake ...
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