PNB Housing Finance (PNBH) has been one of the fastest growing Housing
Finance Companies and is currently the 5th largest player in India. Strong Brand
name of PNB & efficient management has helped in growing the business much
ahead of industry. With 49% stake being held by Pvt Equity Major Carlyle group,
PNBH is all set to scale up its operations. PNBH has delivered RoE of 17.6% on the pre issue net worth.
While the IPO will result in RoE compression, this will give the much required fund
for growth. At the upper price band the issue is offered at 4.6x its FY16 BV.
However at the post issue BV of Rs311, it is offered at 2.5x. PNBH is all geared up
for its next leg of growth and has the potential to become a significant player in
the Indian mortgage business. Looking at the quality of management which can
drive the growth we recommend a SUBSRIBE to the issue.
