PNB shares jump 7% in 2 days after Q1 earnings. Should you buy, sell or hold?
Shares of the company rose to Rs 113.38 apiece today, the highest level seen in nearly three months. The lender on Saturday reported a 214% YoY surge in Q1 FY27 net profit to Rs 5,253 crore, while net interest income (NII) rose 2% YoY to Rs 10,798 crore.
The PSU bank’s return on assets (RoA) increased to 1.04% in Q1 FY27 from 0.37% in Q1 FY26, but decreased from Rs 1.06% in Q4 FY26. Return on Equity (RoE) meanwhile stood at 17.33% during the quarter under review.
PNB’s asset quality improved, with gross non-performing assets (NPAs) declining to 2.78% at the end of the June quarter, from 3.78% a year ago. Its current account savings account deposits increased around 8% YoY to Rs 5.69 lakh crore, while total term deposits increased 9% YoY to Rs 10.21 lakh crore.
Also read | PNB Q1 Results: Net profit surges 214% YoY to Rs 5,253 crore; NII up 2%
JM Financial on PNB share price
JM Financial upgraded its rating on PNB shares to ‘Add’ from ‘Reduce’, and hiked its target price to Rs 120 apiece from Rs 110 apiece. The latest target price implies more than 7% upside potential.
The domestic brokerage highlighted that the PSU lender reported healthy Q1 FY27 results with PAT rising 214% YoY, beating its estimate by 17%, driven by improving core operating performance and continued strengthening in asset quality. NII grew 2% YoY as NIM expanded 6 bps QoQ, supported by lower funding costs and continued run-down of low-yielding IBPC and corporate exposures, it said.
Loan growth remained healthy despite balance-sheet re-pricing, JM Financial noted, adding that management reiterated confidence in further margin improvement through FY27, aided by FCNR mobilisation and continued repricing of liabilities. “Given improving core profitability, resilient asset quality and FCNR mobilisation providing incremental support to funding, downside looks limited at ~0.8xFY28 P/BV. Accordingly, we raise our FY27E/FY28E EPS estimates by 18%/15%,” it said.
Motilal Oswal on PNB share price
Motilal Oswal Financial Services noted that PNB reported a mixed quarter, with earnings beat led by controlled provisions and opex. Provisions came in lower, reflecting strong asset quality, while opex was lower due to fewer AS-15 provisions and a decline in PSLC costs.The domestic brokerage noted that PNB’s business growth remained modest, and management guided for loan growth of nearly 12-13% in FY27. Asset quality trends were healthy, with slippages showing a dip with no significant stress. It reiterated its ‘Buy’ call on the stock with a target price of Rs 135, implying a 21% upside potential.
PNB share price
PNB shares gained over 7% in one week and 4% in one month, but have overall fallen more than 9% in 2026 so far. The PSU lender currently has a market capitalisation of nearly Rs 1.3 lakh crore.
In the longer term, PNB shares delivered marginal returns in one year, but gained over 80% in three years and nearly 184% in five years.
Also read | ICICI Bank wins analysts’ vote after Q1 show; HDFC Bank, Axis, Kotak & Yes Bank face scrutiny
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
