PFC - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

📈 Positive

• 📊 Attractive valuation: P/E of 7.21 vs industry P/E of 23.4 suggests undervaluation.
• 📈 Strong ROE of 20.4% and EPS of ₹55.0 indicate solid profitability.
• 💰 High dividend yield of 3.99% adds passive income appeal.
• 📈 PEG ratio of 0.36 implies good value relative to growth.
• 📈 PAT of ₹4,502 Cr. with 21.1% QoQ growth shows earnings strength.
• 📈 Price trading above recent low (₹357) and near DMA 50 (₹403) suggests potential support.

⚠️ Limitation

• 📉 RSI at 44.8 and MACD at -0.73 indicate weak momentum.
• 📉 Price below both DMA 50 and DMA 200 confirms short-term technical weakness.
• 📉 Volume (52.5 lakh) below 1-week average (60.2 lakh) shows reduced participation.
• 📉 Debt-to-equity ratio of 5.23 is high, typical for NBFCs but still a risk factor.
• 📉 DII holding declined slightly (-0.07%), suggesting cautious domestic sentiment.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over high leverage and potential asset quality risks in the power financing sector.

✅ Company Positive News

• ⚡ PFC continues to benefit from government infrastructure push and power sector reforms.
• 📈 Consistent profitability and strong dividend payout support investor confidence.

🏦 Industry

• 🔌 Operates in power finance and infrastructure lending, which is cyclical but supported by policy tailwinds.
• 📊 Industry P/E of 23.4 reflects moderate growth expectations.

🧾 Conclusion

• 📉 PFC is fundamentally strong and undervalued, but currently in a technical downtrend with weak momentum.
• 📍 Optimal entry: ₹385–₹390 (near support zone and below DMA levels).
• 🚪 Exit if held: ₹410–₹420 (near DMA 200) unless trend reversal is confirmed.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of volume and macro developments.

I can also compare PFC’s swing setup with REC or Power Grid to help refine your trade strategy.