Housing Finance Stock ready to take off! Motilal Oswal’s advice – buy and keep, price can go up to ₹ 1160

PNB Housing Finance (PNBHF) has performed in such a way this quarter that it has brought a smile on the faces of investors. The company’s net profit increased by 23% to ₹470 crore in Q3FY25. Two big brokerage firms Motilal Oswal and HDFC Securities have expressed confidence in this tremendous performance and have called it an excellent option for investment.

Motilal Oswal, praising the quarterly results of PNB Housing Finance, has given it a ‘BUY’ rating and has set the target price at ₹ 1,160. “The company has shown that it is moving in the right direction through 17.5% growth in retail loans and 16% growth in net interest income,” the firm said. The target price of ₹1,160 is a potential return of 28 per cent from today’s closing price.

He also said that the recovery of the company has been excellent, due to which the credit cost has come down significantly. Going forward, the company’s focus will be on affordable housing and high-yielding products, which will take the company’s loan book to ₹1 lakh crore by FY27.

Another brokerage firm HDFC Securities also rated the performance of PNB Housing Finance as excellent and gave it an ‘ADD’ rating. Fixing a target price of ₹980, the firm said, “The company’s retail loan segment is growing steadily and recoveries are so good that credit costs are almost negligible. “It is also expected to remain stable in the remaining part of FY25.”

However, the firm also said that there may be some challenges in overall loan growth, but the company’s focus on affordable and emerging markets will balance this.

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PNB Housing Finance has succeeded in reducing gross NPA to 1.2% and net NPA to 0.8%. The recovery process of the company is so strong that a good amount of money is being recovered even from the old outstanding loans. The company’s profits are expected to increase further due to investment in Pradhan Mantri Awas Yojana (PMAY) and high-yielding segments.

Both the brokerage firms believe that PNB Housing Finance is a long-term horse. The company’s strategy and growing profits have made it an attractive investment option.

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