PNB Housing Finance shares have 78% upside potential, Goldman Sachs says after recent fall

The recent fall seen in shares of PNB Housing Finance presents an attractive entry point, given its recent track record, brokerage firm Goldman Sachs wrote in a note on Tuesday, August 5.

Goldman Sachs maintained its "buy" recommendation on PNB Housing Finance, with a price target of ₹1,386, which implies a potential upside of 78% from Monday's closing levels.

Shares of PNB Housing have declined 28% in the last nine trading sessions, out of which, they have declined in eight of them. The stock declined over 18% on Friday, August 1, after MD & CEO Girish Kousgi resigned, citing personal reasons.

As a result of this fall, shares of PNB Housing Finance are in the Futures & Options (F&O) ban, which means no new positions can be created in the stock.

Goldman Sachs believes that PNB Housing's profitability intact remains despite the exit of its MD & CEO and as a result of this fall, valuations too are likely to have bottomed. It also called the recent fall seen in the stock price as "overdone", and that it presents an attractive entry point.

The brokerage continues to maintain that PNB Housing is well placed to deliver an earnings Compounded Annual Growth Rate (CAGR) of 15% over financial year 2025-2028.

For the near-term, investors will focus on quarterly earnings delivery and appointment of its new MD & CEO.

It also highlighted three factors behind its bullish stance on PNB Housing:

Shares of PNB Housing ended 3.5% lower on Monday at ₹779.9. The stock is down 30% so far in the last one month.