PNB Gilts at life time high, again

For over a month now, PNB Gilts has been rallying only in the green and for the past two days has been hitting new highs. Today was no different; it has hit a new life time high at Rs.59.20, breaching the 5% upper circuit.

The market continues to remain euphoric and optimistic about the company which reported a very good set of numbers for Q2FY17. The numbers were announced on 25^th Oct and since then it has shot up 75%, up from Rs.30 then.

For Q2FY17, this subsidiary of PNB reported a three time surge in net profit at Rs.70 crore on the back of robust all round growth and operational efficiencies. Total income was up 70% (YoY) at Rs.175 crore.

The company is a primary dealer in Govt securities market with more than 90% of its operations in the same. The perception is that the company will be a huge gainer in the current demonetization drive and that too is propelling the stock to new highs every day.