Stock Market Today: The share price of Punjab National Bank (PNB) increased by more than 6% in early morning trades on Monday following the release of Q1 earnings over the weekend.
The share price of Punjab National Bank (PNB) opened at ₹124.86 on the NSE, about 4% higher than the previous closing of ₹119.95 on Monday. PNB’s share price reached an intraday high of ₹128.10, representing a greater than 6% increase.
The Punjab National Bank (PNB) recorded its highest-ever quarterly standalone profit of ₹3,252 crore, boosted by increased interest revenue and fewer bad loans. Year on year, net profits increased by 159%.
Net interest income (NII) climbed by 10.2% to ₹10,476.2 crore in the first quarter of the current fiscal year, up from ₹9,504.3 crore in the same period the previous year.
PNB’s objective for tomorrow?
Tomorrow’s price estimate for PNB – Opening above the mean value of ₹119.09, indicates optimistic optimism in Punjab National Bank. Any price drop should be viewed as a chance to buy the stock. If sentiments remain optimistic, PNB might achieve a high of 121.16 tomorrow.
Analysts at Jefferies India Pvt ltd have a target price of ₹150 for PNB stock, implying a 20% upside in their post-results report, citing solid asset quality in Q1FY25. Jefferies expects the profit recovery to continue.
Though Punjab National Bank’s (PNB) net profit fell slightly short of Jefferies projections in Q1FY25 due to higher operating expenditures (for PSLCs (Priority sector lending certificates)), these are unlikely to occur again. PSLCs are certificates provided to banks in exchange for priority sector loans.
Is it safe to invest in Punjab National Bank?
Punjab National Bank beat its counterparts in all key metrics, including growth, asset quality, and margins. Investors should regard it as a long-term investment.
According to Jefferies, the key positive was decreased slippages of 0.8%, which were offset by higher recoveries. Furthermore, with coverage now at 88%, Jefferies expects credit costs to remain low for another 1-2 years. They anticipate an ROA (Return on Assets) of 0.9% in FY26, with a potential reduction in tax rates enhancing ROA. The valuation of 1.1 times adjusted price to book values based on Jefferies’ FY25 predictions is likewise appropriate, and they rank the Punjab National Bank (PNB) share price as Buy, with a target of Rs150.
What is PNB’s goal price in 2025?
Target prices are determined based on the expected values, which the company aims to reach in one year. The PNB share price target for 2024 is 137.69 INR, while the target for 2025 is 149.95 INR. The PNB share price target for 2026 is 160.78 INR, while the target for 2027 is 157.31 INR.
Is it a good idea to buy Punjab National Bank stock?
Punjab National Bank’s TTM P/E ratio is 15.05, compared to the sector’s P/E of 9.12. 18 analysts have begun coverage of Punjab National Bank. Two analysts have given it a strong buy rating, while two have given it a buy. Five analysts have assigned the stock a sell rating.
Motilal Oswal Financial Services’ post-Q1 earnings per share projections have been raised by 5.6% and 0.8% for FY25 and FY26, respectively, reflecting decreased provisions, solid net interest income, and stable margins. They anticipate a RoA (Return on Asset) of 1.0% and a RoE (Return on Equity) of 14.5% in FY26. MOFSL’s target price for Punjab National Bank (PNB) shares is ₹135.
What is the outlook for PNB stock?
Analyst Future Growth Forecasts – profits vs. Savings Rate: PNB’s expected profit growth (21.4% per year) is higher than the savings rate (6.7%). Earnings vs Market: PNB’s earnings (21.4% per year) are expected to rise faster than the Indian market (16% per year).
What is PNB’s outlook?
Earnings are predicted to increase dramatically during the next three years. Revenue vs. Market: PNB’s revenue (18.9% per year) is expected to increase faster than the Indian market (9.4% per year). PNB’s revenue (18.9% per year) is expected to rise at a slower pace than 20% per year.
In their post-results analysis on Punjab National Bank (PNB), Kotak Institutional Equities stated that asset quality is good; the net NPL (Non-Performing Loan) ratio is 0.6%, which is comparable to the State Bank of India. The slippage ratio stood at 0.8%. Recoveries from bad loans performed well. The Advances increased 12% year on year, led by retail and agricultural. The target price for Punjab National Bank (PNB) shares is ₹110, as they believe the valuation is high.
