Buy PNB Housing Finance: MOSL Raises Target

• PNB Housing Finance reported a 24% profit rise to Rs 582 crore for Q2 September 2025.
• Motilal Oswal targets Rs 1,080; Bernstein maintains Rs 1,020 amid NIM pressures.
• Current share price down 1.5% to Rs 914.15, with loan growth guidance at 17-18% for FY26.

PNB Housing Finance share price target: Following the robust Q2 results for this Housing Finance Company, which is a significant constituent of the BSE

500, a few leading brokerages have shared their evaluations along with price targets for the stock. The company in focus is PNB Housing Finance Ltd, which released its Q2 results on Monday. The firm, with a market capitalisation of Rs 24,279.40 crore (as of October 28), reported its performance for the quarter ending September 2025.

PNB Housing Finance Ltd Q2 Results

PNB Housing Finance announced on Monday that its net profit rose by 24 per cent to Rs 582 crore for the second quarter ending September 2025, up from Rs 470 crore in the same quarter last year.

The company’s total income for the quarter increased to Rs 2,131 crore from Rs 1,880 crore a year earlier. Interest income also saw growth, reaching Rs 2,017 crore compared to Rs 1,780 crore in the corresponding period last year.

Brokerages on PNB Housing Finance

Motilal Oswal has raised its target price for PNB Housing Finance to Rs 1,080 (from Rs 1,050), valuing the stock at approximately 1.2x its estimated book value for September 2027. This reflects a nearly 18 per cent rise from the current stock price.

Here are the reasons listed by MOSL:

1. The brokerage highlights that the company delivered an in-line performance for Q2, and a new CEO is expected to be appointed soon.

2. Net interest margin (NIM) declined by around 7 basis points quarter-on-quarter to 3.67 per cent, impacted by a PLR cut and lower investment yields, with FY26 guidance pegged at 3.6–3.7 per cent.

3. Additionally, the company's asset quality remains strong, with gross NPAs at 1.04 per cent and net NPAs at 0.69 per cent, while credit cost turned negative (~57 bps) due to write-backs.

4. MOSL sees loan growth at 17–18 per cent for FY26, with a target of Rs 15,000 crore in the affordable housing book by FY27.

Bernstein has maintained its target price for PNB Housing Finance at Rs 1,020, citing ongoing Net Interest Margin (NIM) pressure and above-average risk concerns. This reflects a nearly 12 per cent rise from the current stock price.

Here are the reasons listed by Bernstein:

1. According to Bernstein, loan growth guidance for FY26 remains at 17–18 per cent.

2. It also notes that the company's NIM declined 7 basis points quarter-on-quarter to 3.67 per cent, as yields dipped to 9.5 per cent due to lower funding costs.

3. However, Management continues to guide FY26 NIM at 3.6–3.7 per cent, and an update on the CEO appointment is expected soon.

PNB Housing Finance Share Price

At the time of opening, the share prices of this BSE 500 stock were down 1.5 per cent (Rs 13.85), to trade at Rs 914.15 on the BSE.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)