NSEI:PNBHOUSING

Stock Analysis Report

PNB Housing Finance

Executive Summary

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


Snowflake Analysis

Very undervalued with proven track record.


Similar Companies

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: PNBHOUSING's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

PNBHOUSING

-1.6%

IN Mortgage

-1.4%

IN Market


1 Year Return

-55.7%

PNBHOUSING

10.2%

IN Mortgage

6.4%

IN Market

Return vs Industry: PNBHOUSING underperformed the Indian Mortgage industry which returned 14% over the past year.

Return vs Market: PNBHOUSING underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

PNBHOUSINGIndustryMarket
7 Day-2.1%-1.6%-1.4%
30 Day-15.9%-5.5%-3.3%
90 Day-26.4%-0.08%0.4%
1 Year-55.2%-55.7%11.7%10.2%8.4%6.4%
3 Year-61.1%-62.0%39.7%33.8%20.9%14.1%
5 Yearn/a66.9%55.4%30.7%18.5%

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

Valuation

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

20.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNBHOUSING (₹406) is trading below our estimate of fair value (₹509.96)

Significantly Below Fair Value: PNBHOUSING is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PNBHOUSING is good value based on its PE Ratio (5.4x) compared to the Mortgage industry average (11.8x).

PE vs Market: PNBHOUSING is good value based on its PE Ratio (5.4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PNBHOUSING is good value based on its PB Ratio (0.8x) compared to the IN Mortgage industry average (1.1x).


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?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

High Growth Revenue: PNBHOUSING'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: PNBHOUSING'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?

37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNBHOUSING has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: PNBHOUSING earnings growth over the past year (20.6%) exceeded the Mortgage industry 16.1%.


Return on Equity

High ROE: PNBHOUSING'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: PNBHOUSING has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%0.6%markettop25%2.6%industryaverage1.2%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: PNBHOUSING's dividend (2.22%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: PNBHOUSING's dividend (2.22%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

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

Growing Dividend: PNBHOUSING'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%), PNBHOUSING's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Sanjaya Gupta (55yo)

9.7yrs

Tenure

₹22,972,261

Compensation

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 ($USD319.80K) is about average for companies of similar size in the Indian market ($USD407.20K).

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


Board Members

NamePositionTenureCompensationOwnership
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

3.8yrs

Average Tenure

60yo

Average Age

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


Ownership

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


Insider Trading Volume

Insider Buying: PNBHOUSING 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: PNBHOUSING
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹70.126b
  • Shares outstanding: 168.19m
  • Website: https://www.pnbhousing.com

Number of Employees


Location

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

Listings

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

Biography

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 Analysis2020/02/24 13:39
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.