PNB Housing Finance up 10% after Q4 results: Why Morgan Stanley, other brokerages stay bullish

Shares of PNB Housing Finance rose 10% on the BSE on Tuesday to Rs. 996 hit their intraday high after the company reported a 19% year-on-year rise in net profit in the January-March quarter of FY26, with brokerages maintaining their bullish calls and outperforming the stock.

The company announced its Q4 FY26 results in after-market hours on Monday. Along with the earnings, the company has posted a dividend per equity share of Rs. declared a final dividend of 8.

PNB Housing Finance’s net interest margin for the quarter, however, declined marginally to 3.75% in Q4 FY26 at 3.69% from 3.75% in the year-ago period, while gross non-performing assets ratio rose to 0.93% from 1.08% a year ago. The mortgage lender’s assets under management grew by 13% year-on-year to Rs. 90,921 crores. Its retail loan assets grew by 16% to Rs. 86,946 crore as the company resumed corporate lending after a gap of nearly four years.

In the quarter under review, its retail disbursements stood at Rs. 9,020 crore to an all-time high when it re-entered the corporate lending segment, giving builders Rs. 335 crore was distributed.

Morgan Stanley on PNB Housing Finance

Morgan Stanley maintained its ‘overweight’ stance on shares of PNB Housing Finance, each at Rs. 1,160 was the target price, ET Now reported. This share Rs. This indicates an upside potential of around 26% from the previous close of 923.70.

The company reported strong earnings in the March quarter, with after-tax profit estimates largely driven by recoveries, the international brokerage said. NII beat expectations by 1% while PPOP missed by 2% due to other revenue reversals, it added.

Morgan Stanley noted that valuations are cheap, and PNB Housing Finance is a self-supporting story with strong growth and low credit risk backing, ET Now further reported.

JM Financial on PNB Housing Finance

JM Financial has maintained its ‘Buy’ rating for the shares, each at Rs. 950 is the target. This suggests an upside potential of around 3% from the stock’s previous closing price. The local brokerage noted that the company’s profit after tax strongly beat its estimates by around 20%. “The earnings beat was mainly driven by improving growth trends and elevated recoveries, which continued to keep credit costs in negative territory at -0.80% (versus -0.19% in 3Q),” it noted.

“Affordable segment showed signs of sequential recovery, while Prime and Emerging segments drove strong growth. Corporate segment distribution also resumed during the quarter in line with MGMT guidance, contributing ~4% to overall distribution. Asset quality trend on GS3/NS improved. ~0.93%/~0.57%, each improving ~11bps QoQ, consistently strong Backed by recovery,” JM Financial highlights.

Motilal Oswal on PNB Housing Finance

Motilal Oswal Financial Services maintained its ‘buy’ call on the stock. It noted that the company’s profit after tax beat its estimate by 14%. “PNBHF currently trades at 1.2x FY27E P/BV. The company has delivered a stable quarterly performance, underpinned by improving asset quality and supportive credit cost trends, though profitability remains partially constrained by elevated operating costs and soft fee income. Funded by marginal cost of IM, NIM. Encouraging, but sustainability will depend on yield dynamics and growth pace,” it said.

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