PFC - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: Power Finance Corporation Ltd. (PFC)

Swing Trade Rating: 3.1

⚖️ Why PFC’s Setup Is Cautiously Neutral

Technical Picture

RSI at 44.6: Close to neutral, suggesting indecision—neither oversold nor strong momentum.

MACD at -0.71: Slight bearish crossover, signaling the uptrend is stalling.

Current Price (₹411): Below both 50 DMA (₹416) and 200 DMA (₹423), a potential sign of weakness.

Volume & Volatility

Volume above 1-week average, indicating short-term attention, but not convincingly bullish.

Price is 25.5% off its 52-week high, which suggests potential upside if sentiment shifts.

📉 Fundamentals: Strong Earnings, Heavy Leverage

Valuation

P/E of 5.89 vs. industry PE of 24.6 → significantly undervalued.

PEG Ratio of 0.33 → growth-adjusted valuation looks attractive.

Profitability

ROE of 21.0% is strong, but ROCE of 9.73% reflects low operating efficiency.

EPS at ₹69.7 supports its earnings strength.

Risk Profile

Debt-to-equity of 8.25 → very high leverage, common in NBFCs but still a key concern.

Minimal institutional movement — FII & DII holdings slightly down.

🎯 Optimal Entry Price

₹405–₹408

Prefer entry closer to ₹405 with confirmation of RSI rebound above 45 and MACD flattening.

Watch for consolidation above 50 DMA (₹416) before scaling in further.

🧭 Exit Strategy (If Holding Already)

Target Zone: ₹440–₹455

Potential short-term bounce zone if technicals improve.

Stop-Loss: ₹395

Below recent support, with room for volatility control.

🧠 Final Take

PFC presents a mixed bag: cheap valuation and solid earnings, countered by technical drift and high debt. It’s not an explosive swing candidate right now, but worth watching for a reversal setup. Want help spotting the breakout signs or comparing with peer NBFCs? I’ve got your back.

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