Attractive valuations, improving retail realty demand to prop PNB Housing

Improvement in retail real estate demand with slash in GST is expected to spur demand and help drive its loan growth over other smaller players

The stock of PNB Housing Finance fell by about 7 per cent in the last one month while its peers were up were up 2-4 per cent during that period. The former now trades at 1.6 times its FY20 estimated book value, a 58 per cent discount to its three-year average. Stake sale by the parent  Punjab National Bank,  when the entire sector has been reeling under liquidity issues, has also hurt investor sentiment.  

However, an expected improvement in retail real estate demand with slash in goods and services tax is expected to drive demand and help drive loan growth