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PNB Housing Finance is India’s third largest housing finance company. Recent turmoil within the NBFC space has soured sentiment in the stock as also revelation of loans being given to developers such as Supertech, Radius and Lodha which are perceived to be risky. However, management has been proactively working to mitigate this risk or has made adequate provisons for loans which have gone sour and proceeding to sell underlying assets for recovery. We have an neutral weight rating due soft near term performance and growth uptick, which is subject to fresh resource mobilisation. PNB’s decision to remain promoter and keep 26% stake has reduced ownership uncertainty – 13-07-2020 Price: 211.50 Rating: Neutral Weight Recommendation: Hold

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