PNB housing finance witnessing heavy accumulation by mutual funds. Stock may be in a consolidation phase for the next run up.
Source : Stocks held by Mutual Funds | PNB Housing Finance Ltd | RupeeVest
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Increase is due to QIP done in Nov.
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Is it going to improve the sentiments and catch up with market trend?
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Technical experts please comment, is this a valid pattern forming?
I referred to this:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:falling_wedge_reversal
There are 10-15 sessions till the results, which I expect would be good and the stock to reverse its downtrend.
Downtrend, yes. But the stock has been showing signs of consolidation/sideways movement over the past month and a half. Anyway, I won’t be surprised if the stock continues to go nowhere given that the management is quite comfortable treating shareholders like shit with huge dilution every quarter.
Huge dilution every quarter? Are you referring to ESOPS? As per my knowledge, they have not diluted equity after IPO.
ESOPs, of course. The huge gap in the growth rates of net profit and earnings per share tells you everything.
Its an interesting point, never though on those line.
I used to think its a 50% growth story, but when I looked at EPS growth the picture is no longer that rosy.
Futher view points are requested from members
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Everybody expects it to be another HDFC in the making but I have my doubts. This is definitely poised to grow faster than other HFCs but somehow I am not a fan of companies growing commodity grade businesses at super fast speed. I also don’t understand why do they need to give out stock options if the biz is simple and commodity grade. there is certainly no shortage of talent in this country.
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Share count is up by just 2.6% since ipo in November 2016. Would you call it huge dilution?
PAT & EPS growth will be in sync YOY from Q4FY18 on wards after ipo dilution impact is over.
Forgive my ignorance, but what according to you then explains the huge variance in growth rates (of net profit and EPS)? If the number of total outstanding shares has, as you say, increased by just 2.6% since IPO, why would there be such a huge variance in profits and earnings per share? In the latest quarter, for instance, net profit grew at over 50% while EPS grew at just 15%. The trend has been similar in the previous quarters too.
Because comparison is with pre ipo periods where share base was much smaller
I could guess you wont get it. That is why I added line # 2 in my earlier post. Please read it again.
Damn. You guys are right. That was a silly mistake on my part. Thanks very much for clarifying 
PNB Housing is one of the top picks for 2018 for JM Financial and Credit Suisse.
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Cud u share the main points of the report please?
Hello @Vivek_6954, Sorry I do not have the report.
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I got to know about CS’s Pick from Twitter-
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For JM’s Pick, refer this link -Analysts’ Top Stock Bets For 2018
Thanks
Is there any source for this comment…kindly post the source…
I am concerned about their inferior (among the worst in HFCs) return on equity and massive equity dilution over the last 10 years based on financials available in screener. Does it still deserve a premium it is quoting right now?
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