PNB Gilts buzzing on bourses

PNB Gilts is making waves on bourses on Thursday on an intraday basis even as the stock touched its 52-w high at Rs 35 per share. PNB Gilts is up by almost 10 per cent on an intraday basis and the price volume breakout for the stocks suggests a strong momentum in the scrip.

PNB Gilts is the leader in primary dealer business.  Owing to lower interest rate environment which is considered extremely crucial and profitable for the fixed income businesses the stock has done well in past three years.

The stock has gained 29.5 per cent in one year and has given returns in excess of 24 per cent on an annualised basis over three years suggesting that the stock has doubled in past three years. Over a longer tenure i.e five year period the stock has generated 10.80 per cent on an annualised basis. On YTD basis the stock has returned 17.29 per cent outperforming broader markets.

PNB Gilts with a P/E multiple of 5.43 and a face value of Rs 10 per share, boasts of 3.56 per cent dividend yield. Goldman Sachs mutual Fund has invested in this niche player in the fixed income securities market.

Investors can enjoy good returns in the scrip till the time interest rate environment is soft. Higher interest rate environment does not augur well for the stock though, and investors should be careful on that count.