Motilal Oswal is bullish on PNB Housing Finance recommended buy rating on the stock with a target price of Rs 1025 in its research report dated January 15, 2024.
Nifty on Tuesday ended 65 points lower to face resistance around the psychological level of 22,000. The hourly momentum indicator has triggered a negative crossover, indicating loss of momentum on the upside.
The Reserve Bank of India plans to tighten deposit mobilisation rules for housing finance companies like PNB Housing Finance and LIC Housing Finance to align them with other non-banking finance companies. HFCs without investment grade credit ratings will be barred from raising public deposits. The ceiling on public deposits for compliant HFCs will be reduced to 1.5 times net owned funds.
The housing finance sector in India has seen improvements in asset quality despite a sharp rise in interest rates over the past one-and-a-half years. Rising income levels offset higher monthly instalments, and there are no signs of stress from an affordability point of view with rise in housing prices and higher interest rates. PNB Housing Finance, which entered the affordable housing finance space 11 months ago, has 97% of its retail loan assets below Rs 1 crore ticket.