Check Before You Invest : PNB Housing Finance Ltd

Q: Which industry/sub-sector does PNB Housing Finance Ltd belong to?

PNB Housing Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q: Is PNB Housing Finance Ltd a good quality company?

PNB Housing Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is PNB Housing Finance Ltd undervalued or overvalued?

PNB Housing Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 11.82, Historic Median: 12.17. Price to Book, Current: 1.43, Historic Median: 1.26. Price to Sales, Current: 3.23, Historic Median: 2.54. EV to EBITDA, Current: 8.4, Historic Median: 10.71

Q: Is PNB Housing Finance Ltd a good buy now?

PNB Housing Finance Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Operating Income growth is 8.83% for FY-2025, which is above its 5-year CAGR of -2.08%, indicating faster growth.

Q: Return on Assets of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Return on Asset is 2.5%, which is above its 5-year historical median of 1.6%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 25.53, Historic Median: 16.27. PPOP (%), Current: 6.34, Historic Median: -2.5. RoA (%), Current: 2.5, Historic Median: 1.6

Q: Return on Equity (ROE) of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Return on Equity is 12.3% for FY-2025, which is above its 5-year historical median of 11.1%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 6.34% for FY-2025, which is above its 5-year median(-2.5%), indicating increasing margins.

Q: Net Profit Margin of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 25.53% for FY-2025, which is above its 5-year median( 16.27%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

PNB Housing Finance Ltd return on invested capital (ROIC) is 6.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

Check Before You Invest : PNB Housing Finance Ltd

BSE: 540173 NSE: PNBHOUSING ISIN: INE572E01012

| Sector: BFSI | Industry: Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does PNB Housing Finance Ltd belong to?

PNB Housing Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q.2 Is PNB Housing Finance Ltd a good quality company?

PNB Housing Finance Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is PNB Housing Finance Ltd undervalued or overvalued?

PNB Housing Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	11.82	12.17
Price to Book	1.43	1.26
Price to Sales	3.23	2.54
EV to EBITDA	8.4	10.71

Q.4 Is PNB Housing Finance Ltd a good buy now?

PNB Housing Finance Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Operating Income growth is 8.83% for FY-2025, which is above its 5-year CAGR of -2.08%, indicating faster growth.

Q.2 Return on Assets of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Return on Asset is 2.5%, which is above its 5-year historical median of 1.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	25.53	16.27
PPOP (%)	6.34	-2.5
RoA (%)	2.5	1.6

Q.3 Return on Equity (ROE) of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Return on Equity is 12.3% for FY-2025, which is above its 5-year historical median of 11.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 6.34% for FY-2025, which is above its 5-year median(-2.5%), indicating increasing margins.

Q.5 Net Profit Margin of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 25.53% for FY-2025, which is above its 5-year median( 16.27%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

PNB Housing Finance Ltd return on invested capital (ROIC) is 6.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Total Asset growth is 14.15% for FY-2025, which is above its 5-year CAGR of 1.11%, indicating faster growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Capital Adequacy ratio (CAR) is 29.62% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.9 Asset Quality of PNB Housing Finance Ltd?

PNB Housing Finance Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 1.08% for FY-2025, which is below its 5-year median 3.83%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.69% which is below its 5-year median( 2.76%), indicating improving asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of PNB Housing Finance Ltd?

Q.1 Promoter shareholding and pledge status of PNB Housing Finance Ltd?

Promoters hold 28.04% of the PNB Housing Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does PNB Housing Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of PNB Housing Finance Ltd vs Industry Peers?

PNB Housing Finance Ltd AUM CAGR is 1.11%, compared to the 5-year industry median CAGR of 4.02%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of PNB Housing Finance Ltd vs industry peers

PNB Housing Finance Ltd profit metrics are below the industry median level of 10.39%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	25.53	17.47
PPOP (%)	6.34	11.85
RoA (%)	2.5	1.85

Q.3 Operating efficiency of PNB Housing Finance Ltd vs industry peers?

PNB Housing Finance Ltd ROCE (8.7) is in line with the industry median of (8.9); while the current ROE (11.1) are below than the 5-year average Industry ROE (12.3). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	25.53	17.47
PPOP (%)	6.34	11.85
RoA (%)	2.5	1.85
ROCE (%)	9.5	8.9
ROE (%)	12.3	12.3

Valuation & price assessment

Q.1 Stock return of PNB Housing Finance Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 25.12% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	25.1%	30.7%	1.1%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	11.82	12.17	14.87
Price to Book	1.43	1.26	1.28
Price to Sales	3.23	2.54	3.57
EV to EBITDA	8.4	10.71	10.71

Q.3 Valuation ratios of PNB Housing Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.43 is higher than its historical median of 1.26, indicating that the stock is trading above its historical average valuation.

Check more companies

1. LIC Housing Finance

2. PNB Housing Finance

3. Sammaan Capital

4. Aadhar Housing Fin

5. Aptus Value Housing

6. Home First Finance

7. Can Fin Homes

8. Aavas Financiers

9. India Shelter Fin.

10. Repco Home Finance

Check trending companies

1. Granules India Ltd.

2. Nestle India Ltd.

3. National Aluminium Company Ltd.

4. Muthoot Finance Ltd.

5. Motilal Oswal Financial Services Ltd.

Check Before You Invest : PNB Housing Finance Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.