This low price, low PE, high dividend yield financial stock hit new life-highs!

It’s a stock picker market and PNB Gilts has caught value investors’ attention. PNB Gilts is trending positively in charts.

On a day when Sensex is struggling to trade in green despite conducive global market cues, PNB Gilts has made a fresh life-high for itself and is locked in upper circuit with no sellers but only buyers willing to latch up on whatever stocks they can. 

It’s a stock picker market and PNB Gilts has caught value investors’ attention. PNB Gilts is trending positively in charts. No denying the fact that its financial trend is even more impressive with over 47 per cent growth in net profits recorded in December quarter along with impressive sales growth of over 38 per cent reported during the same quarter. 

Locked in the upper circuit at Rs 75.75 per share, the stock is trading at a PE multiple of just 2.41 even as the stock at current prices offers a mouthwatering dividend yield of 10.23 per cent.

The stock is up by more than 72 per cent on a YTD basis while it is up by more than 183 per cent in one year. The RoE reflected by PNB Gilts is a little over 54 thereby, reflecting its profitability. 

PNB Gilt is into the unique business of dealing in government securities. An interesting fact is that it’s the only listed primary dealer in India while the public shareholding in the company is 25.93 per cent. In the year 1996, Reserve Bank of India (RBI) introduced the system of primary dealers with a view to strengthen the institutional infrastructure of the government securities’ market. PNB Gilts was one of the six entities that were granted licences. The company was established as a wholly-owned subsidiary of Punjab National Bank with an initial paid-up capital of Rs 50 crore.