PFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | PFC | Market Cap | 1,47,977 Cr. | Current Price | 448 ₹ | High / Low | 486 ₹ |
| Stock P/E | 7.86 | Book Value | 296 ₹ | Dividend Yield | 3.52 % | ROCE | 9.74 % |
| ROE | 20.4 % | Face Value | 10.0 ₹ | DMA 50 | 428 ₹ | DMA 200 | 406 ₹ |
| Chg in FII Hold | 1.31 % | Chg in DII Hold | -0.43 % | PAT Qtr | 4,763 Cr. | PAT Prev Qtr | 4,462 Cr. |
| RSI | 52.5 | MACD | 15.2 | Volume | 1,01,43,334 | Avg Vol 1Wk | 97,34,685 |
| Low price | 330 ₹ | High price | 486 ₹ | PEG Ratio | 0.39 | Debt to equity | 4.97 |
| 52w Index | 75.7 % | Qtr Profit Var | 14.6 % | EPS | 57.1 ₹ | Industry PE | 19.8 |
📊 PFC is a fundamentally strong company with attractive valuations. It trades at a low P/E of 7.86 compared to the industry average of 19.8, supported by a high ROE (20.4%), stable ROCE (9.74%), and solid EPS (₹57.1). Dividend yield of 3.52% adds to investor returns. Despite high leverage (Debt-to-equity 4.97), consistent profitability and growth make it a solid long-term candidate.
💡 Ideal Entry Price Zone: ₹420 – ₹440 (near DMA 50 and valuation comfort).
⏳ Exit Strategy / Holding Period: Long-term investors can hold for 3–5 years. Partial profit booking is advisable near ₹480–₹490 (recent highs). Stop-loss can be considered around ₹405 (DMA 200) to manage downside risk.
✅ Positive
- Attractive P/E (7.86) vs industry average (19.8).
- Strong ROE (20.4%) and stable ROCE (9.74%).
- Dividend yield of 3.52% provides steady income.
- EPS of ₹57.1 reflects solid earnings power.
- FII holdings increased (+1.31%), showing institutional confidence.
⚠️ Limitation
- High debt-to-equity ratio (4.97).
- ROCE relatively modest compared to ROE.
📉 Company Negative News
- DII holdings reduced (-0.43%).
- High leverage could pressure margins in downturns.
📈 Company Positive News
- Quarterly PAT improved (₹4,763 Cr vs ₹4,462 Cr).
- Quarterly profit variation +14.6% shows consistent growth.
- Stock delivered 75.7% gain over the past year.
🏭 Industry
- Industry P/E: 19.8, highlighting PFC’s attractive valuation.
- Sector supported by infrastructure and power financing demand.
🔎 Conclusion
PFC offers strong fundamentals, attractive valuations, and consistent profitability, making it a good candidate for long-term investment. New investors should enter around ₹420–₹440 for safety. Existing holders can maintain a 3–5 year horizon, with partial profit booking near ₹480–₹490. Monitoring debt levels and ROCE will be key for sustained performance.