Stock Analysis Report

PNB Housing Finance

Executive Summary

PNB Housing Finance Limited operates as a housing finance company in India.


Trading at 18.4% below its fair value

Earnings are forecast to grow 9.43% per year

Earnings grew by 20.6% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Snowflake Analysis

Undervalued with proven track record.

Similar Companies

LIC Housing Finance


Share Price & News

How has PNB Housing Finance's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: 540173's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




IN Mortgage


IN Market

1 Year Return




IN Mortgage


IN Market

Return vs Industry: 540173 underperformed the Indian Mortgage industry which returned 17.2% over the past year.

Return vs Market: 540173 underperformed the Indian Market which returned 11.1% over the past year.

Shareholder returns

7 Day-3.0%0.4%-0.4%
30 Day-21.8%-1.0%-1.5%
90 Day-26.3%8.2%3.3%
1 Year-52.2%-52.7%18.8%17.2%13.0%11.1%
3 Year-61.8%-62.7%44.5%38.5%25.3%18.6%
5 Yearn/a76.4%64.2%35.4%23.1%

Price Volatility Vs. Market

How volatile is PNB Housing Finance's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is PNB Housing Finance undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 540173 (₹414.3) is trading below our estimate of fair value (₹507.94)

Significantly Below Fair Value: 540173 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 540173 is good value based on its PE Ratio (5.5x) compared to the Mortgage industry average (14.8x).

PE vs Market: 540173 is good value based on its PE Ratio (5.5x) compared to the Indian market (13.4x).

Price to Earnings Growth Ratio

PEG Ratio: 540173 is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: 540173 is good value based on its PB Ratio (0.9x) compared to the IN Mortgage industry average (1.2x).

Next Steps

Future Growth

How is PNB Housing Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540173's forecast earnings growth (9.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 540173's earnings (9.4% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: 540173's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540173's revenue (2.2% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 540173's revenue (2.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 540173's Return on Equity is forecast to be low in 3 years time (12.8%).

Next Steps

Past Performance

How has PNB Housing Finance performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 540173 has high quality earnings.

Growing Profit Margin: 540173's current net profit margins (45.3%) are higher than last year (43%).

Past Earnings Growth Analysis

Earnings Trend: 540173's earnings have grown significantly by 37.1% per year over the past 5 years.

Accelerating Growth: 540173's earnings growth over the past year (20.6%) is below its 5-year average (37.1% per year).

Earnings vs Industry: 540173 earnings growth over the past year (20.6%) exceeded the Mortgage industry 14.9%.

Return on Equity

High ROE: 540173's Return on Equity (15.8%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is PNB Housing Finance's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Inventory Level: 540173 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540173's debt is covered by short term assets (assets are 1.4x debt).

Financial Institutions Analysis

Asset Level: 540173's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 540173 has a sufficient allowance for bad loans.

Low Risk Liabilities: 540173 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 540173 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 540173 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 540173 has an appropriate level of bad loans.

Next Steps


What is PNB Housing Finance's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: 540173's dividend (2.17%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 540173's dividend (2.17%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540173 has been paying a dividend for less than 10 years.

Growing Dividend: 540173's dividend payments have increased, but the company has only paid a dividend for 3 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.9%), 540173's dividend payments are thoroughly covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: 540173's dividends in 3 years are forecast to be thoroughly covered by earnings (10.8% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average board tenure


Sanjaya Gupta (55yo)





Mr. Sanjaya Gupta has been the Managing Director, Chief Executive Officer and Executive Director of PNB Housing Finance Limited since June 25, 2010. Mr. Gupta is responsible for the day to day administrati ...

CEO Compensation Analysis

Compensation vs Market: Sanjaya's total compensation ($USD321.23K) is about average for companies of similar size in the Indian market ($USD397.73K).

Compensation vs Earnings: Sanjaya's compensation has been consistent with company performance over the past year.

Board Members

Sanjaya Gupta
CEO, MD & Director9.7yrs₹22.97m0.11% 74.6m
Ramakrishnan Chandrasekaran
Independent Director4.3yrs₹2.14mno data
Shital Jain
Independent Director5.5yrs₹2.39mno data
Ashwani Gupta
Non-Executive Independent Director2.8yrs₹2.16mno data
Nilesh Vikamsey
Independent Director3.8yrs₹2.12mno data
Shubhalakshmi Panse
Independent Director2.6yrs₹1.53mno data
Sunil Kaul
Non-Executive Director4.9yrsno datano data
Gourav Vallabh
Independent Director3.8yrs₹2.20mno data
Ch. S. S. Rao
Non-Executive Director0.2yrsno datano data
Neeraj Vyas
Independent Director0.8yrsno datano data


Average Tenure


Average Age

Experienced Board: 540173's board of directors are considered experienced (3.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 540173 insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

PNB Housing Finance Limited's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: PNB Housing Finance Limited
  • Ticker: 540173
  • Exchange: BSE
  • Founded: 1988
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹70.109b
  • Shares outstanding: 168.19m
  • Website:

Number of Employees


  • PNB Housing Finance Limited
  • Antriksh Bhawan
  • 9th Floor
  • New Delhi
  • Delhi
  • 110001
  • India


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540173BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2016
PNBHOUSINGNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2016


PNB Housing Finance Limited operates as a housing finance company in India. The company offers housing loans for the purchase, construction, repair, and renovation of houses/ flats/commercial properties, etc.; loans for commercial spaces; loans against property; loans for purchase of residential plots; loans for purchase, construction, and extension of dwelling units; home loans for nonresident Indians and persons of Indian origin; Unnati home loans; and credit linked subsidy scheme for economical weaker section, and lower and middle income groups. It also provides non home loans, including loans for purchase/construction of commercial properties, residential/commercial immovable property mortgage loans, lease rental discounting loans, and loans for real estate developers. In addition, the company offers fixed deposits. As of March 31, 2019, it operated 102 branches and 23 hubs in 62 cities. The company was founded in 1988 and is headquartered in New Delhi, India. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:12
End of Day Share Price2020/02/17 00:00
Annual Earnings2019/03/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.