PNB Housing Finance Shares See 78% Upside Potential, Says Goldman Sachs
Despite a recent 30% decline, Goldman Sachs maintains a 'buy' recommendation on PNB Housing Finance, citing an attractive entry point and strong fundamentals.
Pnb Housing FinanceGoldman SachsStock MarketInvestmentFinancial AnalysisReal Estate NewsAug 05, 2025
Goldman Sachs, a prominent brokerage firm, has released a note maintaining its 'buy' recommendation on PNB Housing Finance. The firm has set a price target of ₹1,386, which implies a potential upside of 78% from Monday's closing levels. According to Goldman Sachs, the recent decline in PNB Housing Finance's stock price presents an attractive entry point for investors.
The brokerage firm believes that despite the exit of its MD & CEO, PNB Housing's profitability remains intact. This, combined with the recent fall in stock price, suggests that valuations have likely bottomed out. Goldman Sachs also views the recent decline as 'overdone' and emphasizes that it creates an attractive buying opportunity.
In its analysis, Goldman Sachs highlights several factors that support its bullish stance on PNB Housing Finance:
- Stable asset quality
- Expansion in lending spreads despite intensifying competition
- Disbursements growth in the affordable and emerging markets business
The firm projects that PNB Housing Finance is well-positioned to deliver an earnings Compounded Annual Growth Rate (CAGR) of 15% over the financial years 2025-2028. For the near-term, investors will be closely monitoring the company's quarterly earnings and the appointment of a new MD & CEO.
As of Monday, shares of PNB Housing Finance closed 3.5% lower at ₹779.9. The stock has fallen by 30% over the past month. Despite the recent turbulence, Goldman Sachs remains confident in the company's long-term prospects and maintains its 'buy' recommendation.
Frequently Asked Questions
Why did PNB Housing Finance shares decline recently?
PNB Housing Finance shares declined due to the resignation of MD & CEO Girish Kousgi, which led to a loss of confidence among investors.
What is Goldman Sachs' price target for PNB Housing Finance?
Goldman Sachs has set a price target of ₹1,386 for PNB Housing Finance, implying a 78% upside from recent levels.
What factors does Goldman Sachs consider in its bullish stance on PNB Housing Finance?
Goldman Sachs considers stable asset quality, expansion in lending spreads, and disbursements growth in affordable and emerging markets as key factors supporting its bullish stance.
What is the projected earnings CAGR for PNB Housing Finance according to Goldman Sachs?
Goldman Sachs projects a Compounded Annual Growth Rate (CAGR) of 15% in earnings for PNB Housing Finance over the financial years 2025-2028.
What is the current trading status of PNB Housing Finance shares?
As of Monday, PNB Housing Finance shares are in the Futures & Options (F&O) ban, meaning no new positions can be created in the stock.
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