Shares of this mid-cap NBFC stock jumped up to 8 percent in Monday’s trading session post recovery of a large Non-Performing Account. In the last six months, the company’s stock has gained nearly 40 percent from Rs 472.64 to the current price level.
With a market capitalization of Rs 17,149.80 crores, the stocks of PNB Housing Finance Limited opened their trading hour on Monday at Rs 660 and currently trade at Rs 660.75. The company’s scrip witnessed an intra-day high of Rs 688.10 exhibiting a gain of around 8 percent as compared to the previous close of Rs 634.75 apiece.
Such bullish sentiments were observed for the stock after the company, through a regulatory filing with the BSE dated 19th August 2023, provided an update regarding the recovery of a large Corporate Non-Performing Account worth Rs 784 crores.
The same account represents approximately 1.30 percent of its Loan Assets as on 30th June 2023. The entity resolved the account through an ARC sale under the ‘Swiss Challenge’ method as per the Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021.
During recent quarters, the company has been successful in increasing its operating revenues as well as net profits with the former increasing from Rs 1,635.71 crores during Q4FY22-23 to Rs 1,707.63 crores during Q1FY23-24, and, the latter, increasing from Rs 279.28 crores to Rs 347.32 crores during the same time horizon.
The latest shareholding pattern data, as of the June 2023 quarter, portray the Retail Investors holding a 39.47 percent stake followed by Foreign Institutional Investors (FIIs) holding a 24.77 percent stake in the company.
Based in India, PNB Housing Finance Limited is associated with the business of providing loans pertaining to the purchase, construction, as well as renovation of commercial properties, flats, etc. The company, through its business operations, generates revenue primarily from interest income, commissions, and other fees.
Written by Amit Madnani
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