PNB shares jump 8% after Q2 results beat estimates; Jefferies, Motilal Oswal, others raise target prices
Punjab National Bank shares rose sharply on Monday after the lender reported a 13% year-on-year rise in Q2FY27 net profit to Rs 5,532 crore. Stronger net interest income and improving asset quality prompted bullish brokerage calls, with Jefferies, Motilal Oswal and JM Financial setting target prices of Rs 140 apiece.
Punjab National Bank (PNB) shares experienced an 8% surge to Rs 125.22 on NSE following the public sector lender's impressive Q2 earnings report. The results exceeded market expectations, prompting brokerages to raise their target prices for the stock. PNB's net profit stood at Rs 5,532 crore for the July-September quarter of FY27, marking a 13% increase year-on-year compared to the previous quarter's Rs 4,904 crore.
Net interest income (NII) grew by 11% YoY to Rs 11,601 crore. Asset quality improved as gross non-performing assets (GNPA) ratio dropped by 90 basis points to 2.55%, and net NPA ratio fell by 11 basis points to 0.25%. Operating profit increased by 4% YoY to Rs 7,532 crore, and return on assets (RoA) was recorded at 1.05%. Jefferies upgraded its rating on PNB shares to 'Buy' and set a target price of Rs 140, implying a potential upside of over 20% from its previous closing price of Rs 116.
Motilal Oswal also maintained a 'Buy' rating and increased its target price to Rs 140, citing a higher net interest margin (NIM) driven by improved deposit and loan quality. JM Financial upgraded its rating to 'Buy' and raised its target price to Rs 140, driven by a robust quarter with the highest ever return on assets (RoA) of 1.09% and a 13% YoY profit growth.
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