Mortgage lender PNB Housing Finance shares rallied 8% to Rs 688 in Monday’s trade on BSE after the firm resolved and fully recovered a corporate non-performing asset (NPA) of Rs 784 crore.
The company said it has fully recovered this corporate NPA, constituting about 1.3% of the loan asset as of June 30, 2023. The resolution of this account was achieved on August 19, 2023, by selling the loan to an asset reconstruction company under the Swiss Challenge method under RBI’s rules.
As of June 30, 2023, PNB Housing’s gross NPA totaled Rs 2,270 crore, representing 3.8% of the loan assets. The company’s loan assets amounted to Rs 60,395 crore.
At 10.23 am, the scrip was trading 5.7% higher at Rs 671 on BSE. On a year-to-date, the stock has surged 42%, while it has delivered multibagger returns to its investors as the stock rallied 128% in the past one year.
In Q1 FY24, PNB Housing Finance reported a 47.8% year-on-year (YoY) rise in its consolidated net profit after tax to Rs 347.32 crore. The company had reported a profit of Rs 234.96 crore in the year-ago period. Net interest margin, a key measure of profitability, stood at 3.86%, while net interest income amplified by 70% to Rs 629 crore during the quarter.
The housing finance company’s consolidated total revenue from operations rose 21% on year to Rs 1,707 crores during the quarter ended June from Rs 1,410 crore in Q1FY23.
As per Trendlyne data, the target price of the stock is Rs 708, which shows an upside potential of 6% from the current market prices. The consensus recommendation from 7 analysts for the stock is a ‘Hold’.Technically, the stock’s day RSI (14) is at 52.1. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 11.2, which is above its Center Line, but below the signal line.
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