Punjab National Bank (PNB) has shown remarkable growth recently. The bank’s profit grew 159% YoY due to a sharp fall in provisions and healthy recoveries. Experts predict positive growth in this stock. The red light of the PNB stock terrified its investors.
PNB Stock Price Today
However, the green lines of hope and growth can shape the future of the PNB share price.
Let’s look at the PNB’s Stock Performance on July 29, 2024:-
- PNB’s share price rose by approx 7% on July 29, 2024. The current PNB share price is around ₹128.
- Brokers raised earnings estimates for PNB and suggested target prices.
- The market capitalization of PNB experienced clear growth due to the appreciation of the stock price.
All these were indicated in PNB Q1 Results. If you have not given a look at the PNB Q1 result, here are some of the major highlights from it:-
- The gross NPA ratio declined significantly.
- PNB lowered FY25 gross NPA guidance to 4% from 5%.
- Credit cost guidance for FY25 was cut to 0.5% from 1%.
- Analysts liked the Q1 results and guidance, but the small return ratios limited stock rating upgrades.
Key Factors Of PNB’s Growth
After looking at the growth trends, it is equally important to look at the key factors that led to this. The stock market is highly volatile but you can predict its share price by looking at its growth factors.
- PNB reported a 159% YoY jump in net profit to ₹3,252 crore for the quarter ended June 30, 2024.
- The bank’s Gross NPA (Non-Performing Asset) ratio declined to 4.98% from 7.73% in the previous year.
- NII increased by 10% YoY to ₹10,476 crore.
- The overall positive performance of the banking sector and investor optimism contributed to the stock’s rise.
This will affect the future of PNB share price.
Market Analyst Ratings
Motilal Oswal Financial Services Limited is one of the top online stock trading platforms. MOFSL has also raised its earnings estimates for PNB due to lower provisions and healthy margins. It has also suggested a Neutral rating with a revised future of PNB share price of INR 135.
Nirmal Bang Institutional Equities, a top market researcher, valued PNB at 1.1x June 2026 ABV and suggested a target price of Rs 124. Despite the positive outlook, lower return ratios led Nirmal Bang to maintain an ‘Accumulate’ rating.
While the Q1 results show positive growth, it’s important to maintain a long-term perspective. Sustained profitability, future improvement in asset quality, and digital transformation will be key to PNB’s future success.
Key Points
- PNB’s Q1 results were strong, with a 159% YoY profit increase.
- Asset quality improved significantly, with a declining gross NPA ratio and lower FY25 guidance.
- The bank’s credit cost guidance for FY25 was also reduced.
- Analysts were positive about the results, but tepid return ratios limited rating upgrades.
- The current PNB share price rose as a result of all this.
- Brokers raised earnings estimates for PNB and suggested target prices.
- The future of PNB share price also seems to rise.
Overall, PNB’s Q1 results were positive, reflecting improved asset quality and profitability. However, lower return ratios remain a concern future of pnb share price for some analysts.
Disclaimer:
This blog is only intended for knowledge purposes. We offer our own points of view without making any future predictions. We request that the investors do their own research. For better analysis, they should consider various factors such as valuation multiples (P/E, P/B), analyst ratings, and economic indicators before making investment decisions.
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