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News Topical, Digital Desk : While the market is nervous about the recent huge fall in the company's shares, global brokerage house Goldman Sachs sees a great opportunity in this. The brokerage says that the company's fundamental strength is intact and this fall is "overdone". Their target is ₹1,386 - that is, there is scope for a rise of up to 78% from the current level! Let us tell you that the stock has fallen 8 times in the last 9 trading sessions. There has been a big fall of 18% after the resignation of the CEO on August 1. This fall has come after a change in management. CEO Girish Kausgi has resigned due to personal reasons. At the same time, this stock is under F&O ban - that is, new positions cannot be created
Why Goldman Sachs' trust remains intact - This is about PNB Housing Finance. Let's know in detail.
1. Valuation has now become attractive
Due to the sharp fall in share prices, this stock is now trading at a cheap valuation.
2. No impact on profitability
Despite the departure of the CEO, the company's earning power will remain intact.
3. Annual growth of 15% (FY25–28) Goldman believes that the company will continue to earn strong earnings in the future.
What points did Goldman Sachs highlight: Stable asset quality Rapidly increasing lending spreads, even though competition is increasing Strong disbursement from affordable and emerging markets Sameer Arora (Helios Capital) has given his opinion on CNBC-TV18. If the current CEO goes to a private equity firm, the market will consider it negative. He also feels that the decline of PNB Housing has become excessive. A return of 5-6% is expected by the end of the year. Earning estimates for the whole year are still around 9–10%. This fall is not a reason to be afraid, but to think wisely. The stock is under pressure right now, but investors with a long-term perspective can see it as an opportunity. It will be important to keep an eye on both the appointment of the CEO and the results of the next quarter. Despite the fall in PNB Housing Finance, the confidence of big brokerage firms remains intact. Goldman Sachs has reiterated a buy call with an expectation of up to 78% upside. If you are a long-term investor and understand the risk, then this fallen stock should definitely be on your radar.
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