PNB Housing Finance shares jump 7% to hit one-year high;

The stock today increased 7.11% over yesterday’s close of Rs. 649.80 to reach a 52-week high of Rs. 696.

Shares of PNB Housing Finance Ltd rose sharply in Monday's trade to hit their one-year high level after the company posted strong results for the June 2023 quarter (Q1 FY24). — On the strength of the Q1 FY24 results, PNB Housing Finance shares rise 7% to a one-year high; see details.

INTRODUCTION

Following the release of the company’s solid June 2023 quarter (Q1 FY24) results, shares of PNB Housing Finance Ltd. rapidly increased on Monday to reach their one-year high level.

Profit after tax for the company climbed to Rs 347 crore, up 48% year over year and 24% quarter over quarter.

“The disbursements in the first quarter of FY24 increased by 7% YoY to Rs 3,686 crore. 99 percent of the payments were made in the retail sector, which saw an 8% YoY increase to Rs 3,667 crore.

Retail loans increased to Rs 56,978 crore by 11% YoY and 3% QoQ. As of June 30, 2023, corporate loans were at Rs 3,416 crore, a reduction of 45%, according to PNB Housing’s exchange filing.

Asset quality-wise, gross bad loans, or NPAs, were at 3.76 percent as of June 30, 2023, down from 6.35 percent year-over-year and 3.83 percent quarter-over-quarter.

As of June 30, 2023, the company’s CRAR (Capital to Risk Asset Ratio) increased to 29.93% from 23.91% YoY.

Additionally, we have seen an improvement in asset quality, which has led to greater profitability. The company’s annualized ROA for this quarter is the highest in a decade, at 2.07%.

The stock was last observed trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, according to the technical setup. The 14-day relative strength index (RSI) for the counter was 78.14.

Oversold is defined as a level below 30, while overbought is defined as a level beyond 70. Price-to-book (P/B) is 1.54 and the shares of the company has a price-to-earnings (P/E) ratio of 15.97.