PNB Housing Finance Reports Positive Financial Performance in Q2 FY25, Receives 'Hold' Call from MarketsMOJO

PNB Housing Finance, a largecap company in the housing finance industry, has recently declared its financial results for the quarter ended September 2024. The company has received a ‘Hold’ call from MarketsMOJO, indicating a neutral stance on the stock.

According to the financials, PNB Housing has shown positive performance in the quarter, with a score improvement from 7 to 9 in the last 3 months. The company has also been able to reduce its debt-to-equity ratio, which is now at its lowest in the last five half-yearly periods. This indicates a decrease in borrowing compared to equity capital.

In terms of sales, PNB Housing has recorded its highest net sales of Rs 1,878.68 crore in the last five quarters, showing a positive trend in the near term. The company’s operating profit (PBDIT) has also seen a positive trend, with the highest recorded at Rs 1,736.10 crore in the last five quarters. This indicates an improvement in the company’s efficiency.

Moreover, PNB Housing’s profit before tax (PBT) and profit after tax (PAT) have also shown positive trends in the last five quarters, with the highest recorded at Rs 603.75 crore and Rs 469.68 crore respectively. The company’s PAT has also grown at 22.6% year on year, indicating a positive trend in the near term. Additionally, the company’s earnings per share (EPS) have also increased, showing higher profitability and creating value for shareholders.

However, there are some areas that need improvement for PNB Housing. The company’s operating cash flow has been falling each year in the last three years, with the lowest recorded at Rs -4,644.14 crore. This indicates a decrease in cash revenues from business operations. The company’s short-term liquidity has also deteriorated, with the lowest cash and cash equivalents recorded at Rs 2,606.93 crore in the last six half-yearly periods.

Overall, PNB Housing has shown positive financial performance in the quarter ended September 2024, with some areas that need improvement. Investors are advised to hold their position in the stock, as recommended by MarketsMOJO.