Stock in Action – PFC

Power Finance Shares Movement of Day 

Highlights

1. PFC stock performance 2024: PFC stock performance in 2024 shows remarkable growth.

2. Power Finance Corporation financial results: Power Finance Corporation financial results indicate25% increase in annual profit.

3. PFC highest annual profit: PFC achieved its highest annual profit with Rs. 26,461 crores in FY’24.

4. PFC loan asset growth: PFC saw significant loan asset growth, reaching Rs. 9,90,824 crores in FY’24.

5. PFC dividend payout 2024: PFC declaredfinal dividend payout of Rs. 2.50 per share in 2024.

6. Investing in PFC shares: Investing in PFC shares is considered due to strong financial performance.

7. PFC renewable energy loans: PFC's renewable energy loans grew 25% year-on-year to over Rs. 60,000 crores.

8. PFC net NPA reduction: PFC's net NPA reduction reached its lowest level at 0.85% in FY’24.

9. PFC market position NBFC: PFC maintains its market position as largest NBFC Group in India.

10. PFC share price target 2024: Analysts set PFC share price target of Rs. 620 for 2024.

Why PFC Share is in Buzz?

Power Finance Corporation (PFC) is currently drawing significant attention in financial markets. This buzz is largely due to its remarkable financial performance in fiscal year 2023-24, where it registered highest annual profit in its history. PFC's consolidated Profit After Tax (PAT) surged by 25%, reaching ₹ 26,461 crores, up from ₹ 21,179 crores in previous fiscal year. Additionally, PFC continues to be largest Non-Banking Financial Company (NBFC) group in India, with its balance sheet size surpassing ₹ 10 lakh crore.

Should I Buy Power Finance Corporation Stock? & Why?

When considering investment in PFC, it's crucial to analyze company's recent performance & future prospects.

1. Strong Financial Performance

- Profit Growth: PFC achieved 25% increase in consolidated PAT & 24% increase in standalone PAT, highlighting its robust profitability.
- Loan Asset Growth: loan asset book grew by 16%, indicating healthy expansion in its lending portfolio.
- Improved Asset Quality: Net Non-Performing Assets (NPA) have decreased to 0.85%, lowest in six years, showing improved credit quality & efficient risk management.

2. Dividend Payout

- PFC has proposed final dividend of ₹ 2.50 per share, making total dividend for FY24 ₹ 13.50 per share. This reflects company's commitment to maximizing shareholder value.

3. Market Position

- PFC is now highest profit-making NBFC in India. It continues to lead in renewable energy sector, with renewable loan portfolio exceeding ₹ 60,000 crores, growing by 25% year on year.

4. Future Prospects

- Growth in Power & Infrastructure: With ongoing growth in India's power & infrastructure sectors, PFC is well-positioned to capitalize on these opportunities.
- Capex Cycle: Brokerage firm Bernstein anticipates adding over 300 gigawatts of power generation in next six years, suggesting strong demand for PFC's financing services.

5. Valuation & Analyst Recommendations

- Bernstein has initiated coverage on PFC with 'outperform' rating, setting target price of ₹ 620, implying potential upside of 23%. firm highlights PFC's strong return on equity (RoE) of over 20% & its relatively low price-to-earnings ratio compared to peers.

Conclusion

PFC's impressive financial performance, strategic market position, & promising future growth prospects make it attractive investment option. Its commitment to dividend payouts further enhances its appeal to investors. While investing in any stock carries risks, PFC's robust fundamentals & favorable market conditions position it as compelling choice for potential investors looking to capitalize on India's growing power & infrastructure sectors.