PNB Housing Finance shares fell 16–17% on August 1 after CEO Girish Kousgi’s resignation. Trading at ₹814–₹825, analysts expect recovery with UBS targeting ₹1,300 (~17% upside). Deep dive into trends, forecasts & investor outlook ahead.
📉 What Happened to PNB Housing Finance Today?
On August 1, 2025, PNB Housing Finance shares crashed by around 16–17%, dropping to a four-month low near ₹819 on BSE/NSE. This sharp fall came after the unexpected resignation of CEO Girish Kousgi, who will step down on October 28 to pursue other opportunities.(turn0news14)
The trading volume soared—over 17× the 30-day average, signaling widespread scramble among investors. Analysts at SBI Securities flagged the CEO exit as a short-term negative driver. The company maintains its growth plans and strategy remain unchanged.(turn0news14, turn0news13)
👔 Company Snapshot – Who Is PNB Housing Finance?
PNB Housing Finance is a leading housing finance company in India, originally incorporated in 1988 as a Punjab National Bank subsidiary and later listing publicly in 2016.(turn0search20)
As of 2023, it operates across 189 branches, offering services such as home loans, loans against property, construction loans, and fixed deposits. The company was backed by prominent shareholders like Carlyle Group and PNB itself, with a public float of ~24%.(turn0search20)
📈 Stock Performance & Current Valuation
📌 Share Price Status
- Current Price (Aug 1): ₹814.70 (down ~17% on the day) (turn0search3)
- Recent Range: ₹809–₹887; 20-day average volume ~1.9 million shares.
- Trailing P/E: ~14.15 (sector P/E ~12.08), indicating modest valuation.
- Mutual Fund holding: around 26.8%; FII holding at 24.2% as of June 2025.(turn0search3, turn0search5)
📊 Forecasts & Analyst Outlook
- Technical projections expect the price to reach ₹1,077–₹1,210 by year-end.(turn0search2, turn0search6, turn0search8)
- UBS has initiated a ‘Buy’ rating with a target price of ₹1,300, offering ~17% upside potential.(turn0news16)
Strengths vs ⚠️ Risks
✅ Why Investors Might Still Be Bullish:
- PNB Housing has posted consistent AUM growth and improving asset quality.
- Q1 FY26 saw a healthy mix of deposit & loan growth at its parent bank (PNB).(turn0news17)
- Backing by mutual funds and FIIs shows investor confidence in medium term.
⚠ What Concerns Are Triggering Caution:
- Sudden leadership change raises concerns over transition risk.
- Short-term volatility is high; fundamentals could take a hit.
- Past complaints about customer service and SME credit behavior highlight operational risks.(turn0reddit19)
❓FAQs
❓ Why did the stock crash so heavily today?
Girish Kousgi, CEO since October 2022, announced his exit in October. The sudden news created panic among investors, triggering a sharp sell-off (~16–17%).(turn0news14)
❓ Is ₹814 level a good buy today?
If you’re targeting long-term recovery, forecasts average ₹1,200 by year-end; UBS target sits at ₹1,300. But volatility is high—be cautious and do your own due diligence.
❓ What’s the outlook for PNB parent bank?
Punjab National Bank (PNB) reported a 48% YoY drop in net profit to ₹1,675 crore in Q1 FY26—though asset quality is improving and bad loan recoveries are underway.(turn0news15, turn0news17)
📝 Summary Table
| Factor | Detail |
|---|---|
| 💵 Current Share Price | ₹814.70 (≈‑17% decline) |
| 📉 Daily Movement | Down 16–17% post-CEO resignation |
| 📈 Target Price Forecasts | ₹1,077‑₹1,210 by Dec; UBS target ₹1,300 |
| 🏢 Key Strengths | AUM growth, improving NPA recovery, institutional interest |
| ⚠️ Key Risks | Leadership uncertainty, customer service issues |
💡 What Should Investors Do Now?
- If you’re a long-term investor, this might be an opportunity—but ensure you’re comfortable with leadership changes.
- Short-term traders could watch for bounce-backs near ₹900 levels, but volatility remains high.
- Monitor quarterly updates and board announcements for CEO succession plans.
📢 Related Reads
- Compile a list of PNB HF competitors like LIC Housing, Aavas Finance, Home First for peer analysis.
- Track PNB MF holdings and FIIs sentiment shifts weekly.
⚠️ Disclaimer
This blog is for informational purposes only and not trading advice. All data is based on public sources as of August 1, 2025. Stock forecasts are predictive estimates—not guarantees. Please consult a licensed financial advisor before making investment decisions.
