Power Finance Corporation Ltd
Ticker: PFC
Decent
48/100
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Investing Reference
Price
405.00
Market Cap
133654.12
Debt/Equity
6.2631
ROE %
15.886
PB
0.8614
Promoter %
55.994
Pledge %
0.000
1Y Rev Growth %
17.052
5Y Rev Growth %
11.468
NP Margin %
21.446
NP Margin 5Y Avg %
19.634
Trading Reference
1M Return %
0.328
6M Return %
-4.829
1Y Return %
-15.050
% Away 52W High
29.358
% Away 52W Low
13.366
Daily Volume
5923684
Investment Verdict
Buy
Score 84/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 19/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Power Finance Corporation Ltd is currently trading near a strong support level, with the 50-day EMA indicating bullish momentum. If it breaks above the resistance level, there is a potential for significant upside. However, if it falls below the support, downside risks increase.
Upside Probability: 20% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Power Finance Corporation Ltd (PFC) is a leading financial institution in India, dedicated to providing financial assistance to the power sector. It plays a crucial role in supporting the country's energy infrastructure, ensuring sustainable growth and development. PFC is ideal for investors looking to tap into the growing energy market in India, as it aligns with the government's initiatives for energy efficiency and renewable sources. With a strong track record and robust financial performance, PFC is positioned to deliver value to its stakeholders.
- Established leader in financing the power sector
- Supports renewable energy initiatives
- Strong government backing and policies
- Robust financial performance and growth potential
- Focus on sustainable and efficient energy solutions
Investment Thesis
Power Finance Corporation Ltd (PFC) stands out as a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This positions PFC as a robust choice for investors seeking stability and growth in the power finance sector.
- Strong backing from the Government of India enhances credibility.
- Expanding digital services present a lucrative growth avenue.
- Attractive valuation metrics compared to industry peers.
- Consistent dividend payouts reflect financial stability.
- Strategic role in financing renewable energy projects aligns with national goals.
Opportunity vs Risk
Opportunities
- Strong demand for power financing
- Government support for renewable energy
- Expanding loan portfolio
- Potential for higher margins
- Growing infrastructure investments
Risks ⚠️
- High exposure to NPAs
- Regulatory changes impact profitability
- Economic slowdown affects demand
- Interest rate fluctuations
- Competition from private players
Peer Perspective
Power Finance Corporation Ltd trades at a discount compared to peers like REC Ltd and NTPC, reflecting concerns over margin stability; a consistent improvement in asset quality could trigger a rerating in its valuation.
Future Outlook
Power Finance Corporation Ltd is well-positioned for growth, supported by strong demand for energy financing. However, successful execution of projects and effective cost control will be critical to maximizing shareholder value in the coming years.
AI FAQs for Retail Users
- Q: What does Power Finance Corporation Ltd do?A: Power Finance Corporation Ltd provides financial assistance to the power sector in India.
- Q: Is Power Finance Corporation Ltd a good investment?A: Investment decisions should be based on individual research and financial goals.
- Q: What are the risks of investing in Power Finance Corporation Ltd?A: Market volatility and sector-specific challenges can impact stock performance.
- Q: How can I buy shares of Power Finance Corporation Ltd?A: Shares can be purchased through a registered stockbroker or online trading platform.
- Q: What is the dividend policy of Power Finance Corporation Ltd?A: The company has a history of paying dividends, but future payments depend on profitability.
📊 Stock Investment Checklist (100 Points)
Power Finance Corporation Ltd • Updated: 2025-09-17 16:09:22
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10BusinessHighThe sector is essential for infrastructure financing but faces regulatory challenges.
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10GrowthHighConsistent revenue growth but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels with adequate liquidity.
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6GovernanceGoodPromoter holding is stable, but some concerns over pledging.
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5DriversGoodGrowth drivers exist but execution risks are significant.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100
• Decent
Power Finance Corporation Ltd shows potential but faces several challenges that could impact future performance.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 60/100
- Market Confidence: 68/100