PFC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.3

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📊 Fundamental Analysis Report

• Stock Code: PFC
• Market Cap: ₹1,33,077 Cr
• Current Price: ₹403
• 52W High/Low: ₹524 / ₹357
• EPS: ₹55.0
• Stock P/E: 7.34 vs Industry P/E: 23.7 ✅
• PEG Ratio: 0.37 🟢 (Undervalued)
• Book Value: ₹276 | P/B Ratio: ~1.46 ✅
• ROE: 20.4% | ROCE: 9.74% 🔶
• Debt to Equity: 5.23 ❗ (Highly Leveraged)
• Dividend Yield: 3.92% 💰
• Quarterly PAT: ₹4,502 Cr (↓11.9%)
• RSI: 51.4 | MACD: -0.55 📉

✅ Positive

• Low P/E and PEG ratios indicate strong value relative to earnings and growth.
• High ROE reflects strong shareholder returns and profitability.
• Attractive dividend yield of 3.92% supports income-focused investors.
• Price near DMA 50 and 200 suggests technical support and stability.

⚠️ Limitation

• High debt-to-equity ratio (5.23) increases financial risk and interest burden.
• ROCE below 10% indicates moderate capital efficiency.
• Quarterly PAT declined from ₹5,109 Cr to ₹4,502 Cr.
• MACD negative and volume below average suggest weak short-term momentum.

📉 Company Negative News

• Sequential drop in PAT and slight decline in DII holding (-0.07%).

📈 Company Positive News

• FII holding increased by 0.18%, indicating foreign investor confidence.
• Strong YoY profit growth of 21.1% reflects improving fundamentals.
• Strategic role in financing India’s power sector ensures long-term relevance.

🏦 Industry

• PFC operates in the financial services sector, primarily focused on power sector financing.
• Industry P/E of 23.7 is significantly higher, suggesting PFC is undervalued.
• Sector benefits from infrastructure development and energy transition initiatives.

🧭 Conclusion

• Entry Zone: ₹385–₹400 (near support and RSI neutral)
• Long-Term View: Strong value metrics and strategic importance make PFC a solid long-term hold. Monitor debt levels and accumulate on dips.