PNB Housing Finance Limited (NSE:PNBHOUSING) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in PNB Housing Finance Limited (NSE:PNBHOUSING) had a good week, as its shares rose 7.2% to close at ₹938 following the release of its quarterly results. It was a credible result overall, with revenues of ₹8.6b and statutory earnings per share of ₹74.25 both in line with analyst estimates, showing that PNB Housing Finance is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, PNB Housing Finance's twelve analysts currently expect revenues in 2026 to be ₹36.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 3.2% to ₹85.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹36.4b and earnings per share (EPS) of ₹84.44 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for PNB Housing Finance

The analysts reconfirmed their price target of ₹1,091, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic PNB Housing Finance analyst has a price target of ₹1,200 per share, while the most pessimistic values it at ₹900. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting PNB Housing Finance is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 0.7% annualised decline to the end of 2026. That is a notable change from historical growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PNB Housing Finance is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PNB Housing Finance going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with PNB Housing Finance (at least 1 which doesn't sit too well with us) , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.