State-owned Punjab National Bank (PNB) witnessed a rally on Tuesday and the stock hit a 52-week high. In early deals, the banking stock jumped over 4%. Based on the technical outlook, Vaishali Parekh of Prabhudas Lilladher suggests to buy PNB shares as a Breakthrough Break The 57 level will give hope for further upside.
while writing, PNB were trading on the stock of 56 gained 1.63% on the BSE. The stock touched a new 52-week high 57.40 earlier today. The bank’s market cap is around 61,662 crores. Year-to-date, the stock is up nearly 34%.
On Tuesday, Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “PNB has moved almost 12% since our last analysis and is now approaching the first resistance level. A decisive breach above 57 to 80 Will expect fresh upside move and 100 level. Any pullback or retest of breakout levels will be a good buying opportunity. We suggest to buy and accumulate this stock.
Recently, PNB issued and allotted Basel III compliant Tier-II Capital Bonds at a coupon rate of 7.89% per annum — Overall 4,000 crore on private placement basis.
Last month, PNB had received approval to sell part or all of the bank’s stake in UTI Asset Management Company in one or more tranches. The disinvestment will be done to achieve return on investment. The timeline for disinvestment, percentage of shareholding and value of disinvestment are yet to be finalised.
In Q2FY23, PNB reports 63% drop in net profit 411.3 crore as against a profit of Rs. 1,105.2 crore in the same quarter last year. Although net interest income (NII) increased by 30.2 percent 8,271 crore in Q2FY23 Vs. 6,352.8 crore in Q2 of FY22. Bank’s provisions for bad loans went up 3,555.98 crore as against 2,692.74 crore in the year-ago-quarter. While its gross non-performing assets (NPAs) declined to 10.48% of gross advances from 13.36% in Q2FY22.
Currently, PNB’s earnings per share is 1.86, while its price-to-equity ratio is 1.86 times. Its Return on Equity (ROE) is 2.07%.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and breaking news Update on Live Mint. download mint news app To get daily market updates.