PFC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | PFC | Market Cap | 1,36,009 Cr. | Current Price | 412 ₹ | High / Low | 444 ₹ |
| Stock P/E | 7.22 | Book Value | 296 ₹ | Dividend Yield | 3.84 % | ROCE | 9.74 % |
| ROE | 20.4 % | Face Value | 10.0 ₹ | DMA 50 | 400 ₹ | DMA 200 | 396 ₹ |
| Chg in FII Hold | -0.51 % | Chg in DII Hold | -0.56 % | PAT Qtr | 4,763 Cr. | PAT Prev Qtr | 4,462 Cr. |
| RSI | 51.5 | MACD | 4.47 | Volume | 69,97,480 | Avg Vol 1Wk | 99,38,411 |
| Low price | 330 ₹ | High price | 444 ₹ | PEG Ratio | 0.36 | Debt to equity | 4.97 |
| 52w Index | 71.8 % | Qtr Profit Var | 14.6 % | EPS | 57.1 ₹ | Industry PE | 17.6 |
📊 Power Finance Corporation (PFC) shows strong fundamentals and stable technical indicators, making it a good candidate for swing trading. The RSI at 51.5 and positive MACD (4.47) indicate neutral-to-bullish momentum. The stock is trading above both its 50 DMA (400 ₹) and 200 DMA (396 ₹), signaling strength. With a low P/E of 7.22 compared to the industry average of 17.6, the valuation remains attractive.
💡 Optimal Entry Price: Around 400–410 ₹ (near DMA support)
💡 Exit Strategy (if already holding): Consider exiting near 440–445 ₹ (recent high and resistance zone).
🌟 Positive
- Low P/E ratio (7.22) compared to industry average (17.6), indicating undervaluation.
- Strong ROE (20.4%) supports shareholder returns.
- Dividend yield of 3.84% provides steady income.
- Quarterly PAT growth (4,763 Cr. vs 4,462 Cr.) shows consistent profitability.
- EPS of 57.1 ₹ reflects strong earnings power.
⚠️ Limitation
- High debt-to-equity ratio (4.97), typical for financing companies but adds risk.
- ROCE at 9.74% is modest compared to peers.
- Recent decline in FII (-0.51%) and DII (-0.56%) holdings.
📉 Company Negative News
- High leverage remains a structural concern.
- Institutional investors slightly reducing holdings.
📈 Company Positive News
- Quarterly profit growth of 14.6% shows operational strength.
- Strong dividend yield supports investor confidence.
- Trading above key moving averages indicates technical strength.
🏭 Industry
- Industry P/E at 17.6, while PFC trades at a discount (7.22).
- Power financing sector benefits from infrastructure and energy expansion in India.
- Government-backed entity provides stability and long-term demand visibility.
✅ Conclusion
PFC is a fundamentally strong and technically stable stock, suitable for swing trading. Entry near 400–410 ₹ is favorable, with an exit target around 440–445 ₹. The undervaluation and strong dividend yield make it attractive, though high leverage remains a limitation. Traders can capitalize on short-term momentum while long-term investors benefit from consistent returns.