Financial Services · NSE/BSE: PFC
Power Finance Corporation Limited
Credit Services
Market Cap ₹1.41L Cr
Verdict: High
Quality Scores
Multi-Bagger
82/100
Compounder Quality
87/100
Management Credibility
90/100
Governance
84/100
Cash Flow Quality
65/100
AI Summary
Power Finance Corporation (PFC) is a Navratna PSU and a critical infrastructure finance company (IFC) that serves as the backbone of India's power sector financing. Over the last decade, PFC has transformed from a standalone lender into a consolidated financial powerhouse, notably through its acquisition of REC Limited. The company exhibits robust profitability with a Return on Equity (ROE) consistently above 20% and has significantly improved its asset quality, reducing Gross NPAs from over 7% to under 2%. Trading at roughly 1x book value with a high dividend yield, PFC offers a compelling…
Top Opportunities
- Maharatna status with strong sovereign support
- Deeply undervalued on P/B and P/E basis
- High dividend yield consistently above 3%
Top Risks
- Extremely high leverage (D/E ratio)
- Vulnerability to power sector regulatory changes
- Negative CFO due to core business nature
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