Why the Street is positive on PNB Housing despite rich valuations

At over 3x FY19 price-to-book, analysts say high growth prospects support valuations

In just about a year of its listing (November 2016), PNB Housing has been quick to grab the Street’s attention. After listing, gains of over 55 per cent have been adequately supported by fundamentals, quarter after quarter, with the momentum being maintained in September 2017 quarter (Q2). In fact, despite the 19 per cent correction from its end-August peak of Rs 1,715, the stock is still among the top performers in the housing finance space in the past one year. Even now, eight of the 12 analysts polled on Bloomberg recommend ‘buy’ on PNB Housing despite the tall asking rate