PFC - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | PFC | Market Cap | 1,48,010 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 | 429 ₹ | 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 | 52.4 | MACD | 13.2 | Volume | 82,49,151 | Avg Vol 1Wk | 1,02,21,302 |
| Low price | 330 ₹ | High price | 486 ₹ | PEG Ratio | 0.39 | Debt to equity | 4.97 |
| 52w Index | 75.6 % | Qtr Profit Var | 14.6 % | EPS | 57.1 ₹ | Industry PE | 19.8 |
Analysis: Power Finance Corporation (PFC) shows strong fundamentals with a low P/E (7.86 vs industry 19.8), high ROE (20.4%), and consistent profit growth. The current price (₹448) is above both DMA 50 (₹429) and DMA 200 (₹406), confirming an uptrend. RSI at 52.4 indicates neutral momentum, while MACD is positive, supporting bullish sentiment. Dividend yield of 3.52% adds income stability. However, the debt-to-equity ratio of 4.97 is high, reflecting leverage risk.
Optimal Entry Price: Around ₹430–435 (near DMA 50 support).
Exit Strategy: If already holding, consider booking profits near ₹480–485 (recent high) or if RSI rises above 70.
✅ Positive
- Low P/E ratio (7.86) compared to industry average (19.8).
- Strong ROE (20.4%) and EPS of ₹57.1.
- Dividend yield of 3.52% provides steady returns.
- Quarterly PAT increased from ₹4,462 Cr to ₹4,763 Cr.
- FII holdings increased by 1.31%, showing foreign investor interest.
⚠️ Limitation
- High debt-to-equity ratio (4.97) indicates leverage risk.
- ROCE at 9.74% is modest compared to peers.
- DII holdings decreased by 0.43%, showing reduced domestic institutional support.
📉 Company Negative News
- High leverage could pressure margins in rising interest rate scenarios.
- Volume lower than weekly average, suggesting reduced short-term trading activity.
📈 Company Positive News
- Consistent profit growth with quarterly PAT up 14.6%.
- Strong dividend payout supports investor confidence.
🏭 Industry
- Industry PE at 19.8, higher than PFC’s valuation, making it relatively undervalued.
- Power financing sector benefits from infrastructure expansion and government initiatives.
🔎 Conclusion
PFC is a fundamentally strong candidate for swing trading with attractive valuation and dividend yield. Entry near ₹430–435 offers a good risk-reward setup, while profit booking around ₹480–485 is advisable. Caution is warranted due to high leverage, but overall momentum supports a bullish swing trade.