PFC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📊 Technical Analysis

• Chart Patterns: Stock is trading close to its 52-week low (330 ₹), showing strong support but heavy correction from highs.
• Moving Averages: Current price (338 ₹) is below both 50 DMA (369 ₹) and 200 DMA (399 ₹), indicating bearish bias.
• RSI: At 18.8, the stock is deeply oversold, suggesting potential rebound.
• MACD: Negative (-11.4), confirming strong bearish momentum.
• Bollinger Bands: Price is hugging the lower band, signaling oversold condition and possible mean reversion.
• Volume Trends: Current volume (55,47,258) is slightly lower than 1-week average (59,46,049), showing reduced participation.

📈 Momentum & Signals

• Short-term Momentum: Weak, but oversold indicators suggest potential bounce from support.
• Entry Zone: 330–340 ₹ (near strong support).
• Exit Zone: 365–390 ₹ (resistance at DMA levels).
• Trend Status: Currently consolidating near support with bearish undertone.

✅ Positive

• Low P/E ratio (6.14) compared to industry PE (21.2), suggesting undervaluation.
• Strong ROE (20.4%) and decent EPS (55.2 ₹).
• Dividend yield of 4.76% provides steady shareholder returns.
• Quarterly PAT remains strong at 4,462 Cr.

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA.
• High debt-to-equity ratio (4.97) indicates leveraged balance sheet.
• ROCE (9.74%) is modest compared to peers.
• Weak momentum indicators (RSI oversold, MACD negative).

📉 Company Negative News

• Quarterly PAT declined slightly from 4,502 Cr. to 4,462 Cr.
• DII holdings decreased (-0.07%), showing reduced domestic investor confidence.
• Stock has corrected sharply from 52-week high of 482 ₹.

📈 Company Positive News

• FII holdings increased (+0.18%), showing foreign investor support.
• Strong fundamentals with consistent profitability and high dividend yield.
• PEG ratio of 0.31 indicates attractive valuation relative to growth.

🏭 Industry

• Industry PE is 21.2, much higher than PFC’s PE of 6.14, highlighting undervaluation.
• Power finance sector growth supported by infrastructure investments and government initiatives.

📝 Conclusion

• PFC is fundamentally undervalued but technically weak in the short term.
• Oversold indicators (RSI, Bollinger Bands) hint at possible rebound from support.
• Best strategy: Accumulate near 330–340 ₹ and book profits around 365–390 ₹.
• Overall trend: Consolidation with bearish bias, awaiting reversal signals.