Shares of PNB Housing Finance could rise by up to 36%; should you
PNB Housing Finance shares were trading as high as 4% on the NSE after Morning Stanley, a global brokerage firm, started coverage.
Shares to Buy: After international brokerage firm Morning Stanley started to cover the housing finance scrip, PNB Housing Finance shares were trading as high as 4% on the NSE. PNB Housing Finance was still rated as “overweight” by Morgan Stanley, with a goal price of Rs 700 per share. In other words, investors can expect to receive a healthy yield of about 36%. According to the brokerage, the company’s base case profit after tax would increase by 8–9% in FY24–25 due to anticipated reduced funding costs. According to Morgan Stanley, it considers how the rights problem might affect its base case in the future.
In order to raise up to Rs 2,500 crore, the board of PNB Housing Finance has authorized a rights issue of approximately 9.06 crore shares at a price of Rs 275 per share. The right entitlement ratio of 29:54, which stipulates that 29 equity shares will be offered for every 54 units owned by an eligible equity shareholder as of the record date, has been authorized by the board.
The 5th of April has been chosen as the milestone date. It will go on sale on April 13 and end on April 27.
The brokerage company anticipates lower financing costs, partly offset by higher royalties. Historical Stock Prices Data from the market shows that the stock has increased by almost 9% over the last five days.
Additionally, the price has dropped by 10% over the past month. But over the course of six months, the stock recovered more than 35%. Over the course of a year, the company has produced a profit for investors of 29.5%.