PNB Housing Finance Limited

Financial Services — Mortgage Finance · NSE

₹1,167.70−₹16.20 (−1.37%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of PNB Housing Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

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

IndustryMortgage Finance

SectorFinancial Services

Employees2,355

Annual revenue₹3,617 Cr

How does it make money?

Turns over ₹3,617 Cr a year. Of every ₹100 of sales, about ₹63 reaches shareholders as profit. Each of its 2,355 employees supports ₹1.54 Cr of revenue a year, the signature of a capital- or asset-led business.

Net margin63.3%

Revenue / employee₹1.54 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROE11.9%

Peer median ROE16.5%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 22.1% and earnings to grow about 13.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.1%

Est. earnings growth+13.1%

Analysts12

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +42% while net margin moved +54% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+42%

Margin effect+54%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.29 — historically steadier than the index
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.0x

3Y Median

14.0x

40 monthly readings · mean 14.1x · range 10.1x–19.1x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 14.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 24% below the peer median of 17.0x.

vs. its own history

Fair

14.0x median over 40 months · -7%

vs. sector peers

Cheap

17.0x median of 4 peers · -24%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.0x

P/B

1.58x

EV/EBITDA

—

PEG

0.43

Dividend Yield

0.69%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 28% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 24% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 12.5% CAGR
Latest reported year was 5.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 10%✓ 11.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 14.0x✓ 13.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹30,454 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

1.58x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹89.89

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

2.88x

High

High leverage

Revenue Growth (YoY)

5.8%

Modest

Modest growth

Profit Growth (YoY)

4.3%

Modest

Slow profit growth

Dividend Yield

0.69%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹9,017 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,167.7

P/E (Forward)

11.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

75.2%

Good

Healthy core-business profitability

Net Margin

61.4%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1137.3 / 1149.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,541 Cr	₹2,784 Cr	₹2,962 Cr	₹3,617 Cr	+12.5%
PAT (Net Profit)	₹1,046 Cr	₹1,508 Cr	₹1,936 Cr	₹2,291 Cr	+29.9%
EPS	₹53.16	₹58.2	₹74.25	₹87.8	+18.2%
ROE	9.5%	10.1%	11.5%	11.9%	—
Total Debt	₹36,482 Cr	₹37,391 Cr	₹44,814 Cr	₹53,314 Cr	+13.5%
Free Cash Flow	-₹1,880 Cr	-₹4,701 Cr	-₹8,106 Cr	-₹9,017 Cr	—

🟢 Revenue has grown at 12.5% a year over 3 years.

🟢 PAT (Net Profit) has grown at 29.9% a year over 3 years.

🟢 EPS has grown at 18.2% a year over 3 years.

🟢 ROE has risen from 9.5% to 11.9% over 3 years (+2.4 pts).

🔴 Total Debt has grown at 13.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹93,512 Cr

Total Liabilities

₹74,293 Cr

Total Debt

₹53,314 Cr

Cash & Equivalents

₹3,345 Cr

Operating Cash Flow

-₹8,984 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

55.4%

Insider Holding

28.0%

Corporate Actions

Dividend Rate

₹8

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

12 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,305

+11.8% vs CMP

Target Range

₹960 – ₹1,425

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive2 mixed3 general

PNB Housing fixes AGM date, recommends ₹8 dividend

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

PNB Housing Finance (NSEI:PNBHOUSING) Stock Forecast & Analyst Predictions

Simply Wall Street, 11 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

PNB Housing Finance Ltd. (PNBHOUSING) Share Price hits fresh 52-week high at Rs 1213

Univest, 13 Oct

Stock to buy today: PNB Housing Finance (₹1,150) – BUY

BusinessLine, 09 Oct

Top 2 stocks to buy for tomorrow: PNB Housing Finance, TVS Motor Company by Chandan Taparia - Check stop-loss, targets

Livemint, 12 Oct

Adani Green Share Price Target Oct 8: Trade Spotlight on PNB Housing and MCX India

Alice Blue, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong18/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13.3/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive10.4/15

🟡RiskModerate5.8/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 9% a year12.5% CAGR
✓Return on equity stays above 10%11.9%
✓Valuation vs its own median of 14.0x13.0x today