PNB Housing Finance: On Wednesday, PNB Housing Finance Ltd witnessed a significant downturn, with its shares plummeting by 8.12 percent to reach a low of Rs 724.55. Currently, the stock is trading 5.33 percent lower at Rs 746.55. This price level reflects a considerable decline of 18.32 percent from its one-year high of Rs 913.95, which was recorded earlier this year on January 25th.
Today, the trading activity for the stock surged significantly, hinting at a possible block deal. On the BSE, approximately 1.53 crore shares exchanged hands, a stark contrast to the two-week average volume of 20,000 shares. This heightened activity resulted in a turnover of Rs 1,113.84 crore, contributing to a market capitalization of Rs 19,483.19 crore. However, the parties involved in the block deals remain undisclosed.
From a technical perspective, the stock finds support around the Rs 715 mark, while resistance may be encountered at Rs 754. Analysts suggest that investors could contemplate purchasing the stock during dips around the Rs 700 level.
According to Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, the stock currently exhibits weakness. Support is anticipated at the Rs 715 level, and a decisive breach above Rs 754 is essential for further upward movement.
Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, suggested considering purchasing the stock during declines to around the Rs 700 level, targeting an expected near-term level of Rs 780. He advised maintaining a strict stop loss of Rs 680.
Currently, the stock is trading below its 5-day, 10-day, 20-day, 30-day, 100-day, and 150-day simple moving averages (SMAs), but above the 50-day and 200-day SMAs. The 14-day relative strength index (RSI) stands at 46.87, indicating it’s neither oversold (below 30) nor overbought (above 70).
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In terms of valuation, the stock has a price-to-equity (P/E) ratio of 13.47 and a price-to-book (P/B) value of 1.83. The earnings per share (EPS) is reported at 55.58 with a return on equity (ROE) of 13.58.
As of March 2024, the company’s promoters maintained a stake of 28.13 percent in the company.
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