PNB Housing Finance shares surged 1.65% to ₹1,102.90 on the NSE after JPMorgan upgraded the stock to its top pick in the housing finance space.
But 13 of 15 analysts covering the stock already hold a Buy rating, while two have a Hold, underscoring a consensus bullish stance that magnifies the impact of JPMorgan’s endorsement.
JPMorgan’s note pinpoints a potential 10‑bps bump in net interest margin for every 25‑bps rise in policy rates, translating into a 3‑5% earnings‑per‑share uptick—figures that sit comfortably above the sector average of a 4‑bps NIM gain in the last quarter.
Meanwhile, the brokerage highlights that liquidity from foreign currency non‑resident deposits has not yet forced banks to intensify mortgage competition, nor has it slashed the cost of funds for NBFCs; the result is a stable asset‑quality profile with micro‑loan‑against‑property risks contained.
IIFL Finance, meanwhile, sees limited scope to pass higher rates onto gold‑loan borrowers, and its shares are down 1.18% at ₹591.10, trailing the market and recording a 5% YTD decline.
Looking ahead, JPMorgan expects the liquidity influx to continue, but cautions that the policy rate trajectory will dictate the pace of earnings growth; the next earnings call is slated for early October, where the firm will likely revisit NIM projections and market‑share gains.