PNB Housing Finance Stock Rated a Strong Buy: UBS Predicts 17% Upside Potential

PNB Housing Finance Stock Rated a Strong Buy: UBS Predicts 17% Upside Potential





Brokerage giant UBS has initiated coverage on PNB Housing Finance Ltd., issuing a bullish "Buy" rating with a target price of ₹1,300 — signaling a 17% upside from Thursday’s closing price of ₹1,112.

UBS's investment thesis centers on the company’s strategic shift toward emerging and affordable loan segments, moving away from its reliance on prime loans. Currently, prime loans constitute 73% of PNB Housing’s portfolio. However, UBS projects this will decrease to 60% by FY27, with non-prime loans rising to 40%.

“PNB Housing is expected to remain selective with prime loans, leading to a gradual contraction in that segment,” UBS noted.

This diversification is projected to boost Assets Under Management (AUM) at a CAGR of 16% between FY25 and FY27. Additionally, earnings per share (EPS) are expected to grow at 13% CAGR, with Return on Equity (RoE) reaching 13%+ by FY28.

Valuation-wise, UBS considers the stock attractive. Trading at just 1.4x FY27 price-to-book, PNB Housing is seen as undervalued compared to its peers, especially considering its strong loan growth and improving profitability metrics.

UBS also cited the company’s expansion strategy, which includes growing its branch network from 356 to 500 by FY27.

Notably, all 13 analysts covering the stock have assigned it a “Buy” rating, reinforcing market confidence.

Over the past month, PNB Housing shares have surged 7%, with a 23% gain year-to-date, reflecting strong investor sentiment.

Popular posts from this blog

Made-in-India iPhone Exports to the US Skyrocket: 97% Shipped Between March and May 2025

📱 Made-in-India iPhone Exports to the US Skyrocket: 97% Shipped Between March and May 2025 🔥 Apple's Strategic Move to Beat China Tariffs and Boost India Production Apple is rapidly increasing its iPhone exports from India to the United States in a significant shift that highlights its smart strategy to bypass high tariffs on Chinese-made products. According to recent customs data reviewed by Reuters, a stunning 97% of iPhones exported from India between March and May 2025 were shipped directly to the US . 📦 Record-Breaking iPhone Exports from India to the US Global tech giant Foxconn exported iPhones worth $3.2 billion (approx. ₹27,547 crore) from India during this three-month period , and almost all of them went to the US market. In May alone, shipments touched nearly $1 billion (around ₹8,608 crore), while the record was set in March with $1.3 billion (₹11,191 crore) worth of iPhones exported. This is a sharp jump compared to 2024, when only about 50% of India’s iPhone e...
Read more

FedEx Founder Frederick Smith Passes Away at 80: Remembering His Remarkable Legacy

FedEx Founder Frederick Smith Passes Away at 80: Remembering His Remarkable Legacy Frederick W. Smith , the visionary founder of FedEx , has passed away at the age of 80. The news was officially announced by FedEx CEO Raj Subramaniam through a company memo published on Saturday. Born in 1944 , Frederick Smith was a former officer in the United States Marine Corps and served during the Vietnam War . In 1973 , he founded Federal Express with just 389 employees and a fleet of 14 small aircraft . On its very first night, the company delivered 186 packages from Memphis to 25 cities across the United States . Over the decades, FedEx expanded into a global logistics powerhouse. Today, FedEx operates over 705 aircraft , more than 200,000 delivery vehicles , and manages nearly 5,000 global facilities . The company now employs approximately 500,000 people worldwide and handles an average of 17 million shipments every day . In 2022, Smith stepped down as CEO, passing the leadership t...
Read more