PFC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | PFC | Market Cap | 1,29,562 Cr. | Current Price | 393 ₹ | High / Low | 444 ₹ |
| Stock P/E | 7.11 | Book Value | 296 ₹ | Dividend Yield | 4.02 % | ROCE | 9.74 % |
| ROE | 20.4 % | Face Value | 10.0 ₹ | DMA 50 | 370 ₹ | DMA 200 | 390 ₹ |
| Chg in FII Hold | -0.51 % | Chg in DII Hold | -0.56 % | PAT Qtr | 4,462 Cr. | PAT Prev Qtr | 4,502 Cr. |
| RSI | 64.6 | MACD | 6.51 | Volume | 1,05,45,024 | Avg Vol 1Wk | 1,56,09,613 |
| Low price | 330 ₹ | High price | 444 ₹ | PEG Ratio | 0.35 | Debt to equity | 4.97 |
| 52w Index | 54.9 % | Qtr Profit Var | 2.09 % | EPS | 55.2 ₹ | Industry PE | 19.3 |
📊 Analysis: PFC trades at an attractive valuation (P/E 7.11 vs industry 19.3) with strong ROE (20.4%) and a healthy dividend yield (4.02%). The current price (₹393) is slightly above the 200 DMA (₹390) and 50 DMA (₹370), showing technical support. RSI at 64.6 indicates moderately strong momentum, while MACD (6.51) confirms bullish bias. However, high debt-to-equity (4.97) is a concern, and both FII (-0.51%) and DII (-0.56%) holdings have declined. PAT is stable but flat sequentially. Overall, PFC is a decent swing trade candidate with limited upside due to debt overhang.
💡 Optimal Entry Price: Around ₹380–₹390 (near 200 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near ₹440–₹445 (recent high resistance). Exit below ₹370 if weakness emerges to protect capital.
✅ Positive
- Attractive valuation (P/E 7.11 vs industry 19.3).
- Strong ROE at 20.4%.
- Dividend yield of 4.02% provides steady returns.
- EPS at ₹55.2 shows solid earnings power.
- PEG ratio of 0.35 indicates undervaluation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (4.97) increases risk.
- Decline in institutional holdings (FII and DII).
- ROCE at 9.74% is modest compared to peers.
- Volume lower than weekly average, showing reduced participation.
📉 Company Negative News
- Sequential decline in PAT (₹4,502 Cr → ₹4,462 Cr).
- High leverage could pressure future profitability.
📈 Company Positive News
- Stable profitability with strong EPS.
- Dividend yield supports investor confidence.
- Technical indicators show bullish bias above DMA levels.
🏭 Industry
- Industry P/E at 19.3 highlights PFC’s undervaluation.
- Power finance sector benefits from infrastructure and energy demand growth.
🔎 Conclusion
PFC is a fundamentally undervalued stock with strong ROE and dividend yield, making it a fair candidate for swing trading. Entry near ₹380–₹390 offers a good risk-reward setup, with exit near ₹440–₹445. However, high debt and declining institutional interest limit upside potential. Risk management is essential.