⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | PFC | Market Cap | 1,42,633 Cr. | Current Price | 432 ₹ | High / Low | 444 ₹ |
| Stock P/E | 7.57 | Book Value | 296 ₹ | Dividend Yield | 3.66 % | ROCE | 9.74 % |
| ROE | 20.4 % | Face Value | 10.0 ₹ | DMA 50 | 400 ₹ | DMA 200 | 396 ₹ |
| Chg in FII Hold | -0.51 % | Chg in DII Hold | -0.56 % | PAT Qtr | 4,763 Cr. | PAT Prev Qtr | 4,462 Cr. |
| RSI | 61.1 | MACD | 4.95 | Volume | 1,56,13,510 | Avg Vol 1Wk | 1,03,27,987 |
| Low price | 330 ₹ | High price | 444 ₹ | PEG Ratio | 0.38 | Debt to equity | 4.97 |
| 52w Index | 89.4 % | Qtr Profit Var | 14.6 % | EPS | 57.1 ₹ | Industry PE | 18.0 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from ₹4,462 Cr to ₹4,763 Cr (+14.6%).
- Profit Margins: Stable margins supported by lending operations.
- Debt Ratios: Debt-to-equity at 4.97 → highly leveraged, typical for NBFC/PSU lenders.
- Cash Flows: Strong cash generation from lending activities.
- Return Metrics: ROE at 20.4% is strong; ROCE at 9.74% moderate due to high debt load.
💹 Valuation Indicators
- P/E Ratio: 7.57 vs Industry PE of 18.0 → undervalued.
- P/B Ratio: ~1.46 (Price ₹432 / Book Value ₹296) → reasonable.
- PEG Ratio: 0.38 → attractive, suggesting growth at a discount.
- Intrinsic Value: Current price near fair value, with upside potential.
🏢 Business Model & Competitive Advantage
- Power Finance Corporation (PFC) is a leading PSU NBFC financing power sector projects.
- Competitive advantage lies in government backing, scale, and sector dominance.
- Strong dividend yield (3.66%) adds to investor appeal.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹400 – ₹420 (near DMA50 & DMA200 support).
- Long-Term Holding: Suitable for long-term investors seeking stable dividends and exposure to India’s power sector growth.
✅ Positive
- Low P/E compared to industry.
- Strong ROE (20.4%).
- High dividend yield (3.66%).
- Consistent profit growth.
⚠️ Limitation
- High debt-to-equity ratio (4.97).
- ROCE relatively modest at 9.74%.
- Dependence on power sector policies and reforms.
📉 Company Negative News
- Decline in FII (-0.51%) and DII (-0.56%) holdings.
- High leverage raises risk in volatile interest rate environments.
📈 Company Positive News
- Quarterly PAT growth of 14.6%.
- Strong dividend payout policy.
- Stable government-backed operations ensure reliability.
🏭 Industry
- Power sector financing remains crucial for India’s infrastructure growth.
- Industry PE at 18.0, highlighting PFC’s undervaluation.
🔎 Conclusion
PFC offers strong fundamentals with attractive valuations and high dividend yield. While leverage is high, government backing and consistent profitability make it a reliable long-term investment. Investors can accumulate near support levels for steady returns and exposure to India’s power sector expansion.