BSE:532810

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Executive Summary

Power Finance Corporation Limited provides financial products and related advisory, and other services to the power sector in India. More Details


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has Power Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532810 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

532810

-1.1%

IN Diversified Financial

-0.6%

IN Market


1 Year Return

-14.0%

532810

-23.9%

IN Diversified Financial

2.2%

IN Market

Return vs Industry: 532810 exceeded the Indian Diversified Financial industry which returned -23.9% over the past year.

Return vs Market: 532810 underperformed the Indian Market which returned 2.2% over the past year.


Shareholder returns

532810IndustryMarket
7 Day3.3%-1.1%-0.6%
30 Day-6.5%-8.3%0.2%
90 Day2.7%-3.0%6.7%
1 Year-6.9%-14.0%-21.2%-23.9%3.9%2.2%
3 Year-24.0%-34.0%-45.9%-49.7%2.6%-2.4%
5 Year-8.7%-28.9%0.6%-16.3%41.3%30.8%

Price Volatility Vs. Market

How volatile is Power Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Power Finance undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532810 (₹87.25) is trading below our estimate of fair value (₹262.55)

Significantly Below Fair Value: 532810 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532810 is good value based on its PE Ratio (3x) compared to the IN Diversified Financial industry average (10.3x).

PE vs Market: 532810 is good value based on its PE Ratio (3x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532810's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532810's PB Ratio (0.5x) is in line with the IN Diversified Financial industry average.


Next Steps

Future Growth

How is Power Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.4%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Power Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Power Finance performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532810 has high quality earnings.

Growing Profit Margin: 532810's current net profit margins (33.4%) are lower than last year (52.3%).


Past Earnings Growth Analysis

Earnings Trend: 532810's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: 532810's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532810 had negative earnings growth (-23.3%) over the past year, making it difficult to compare to the Diversified Financial industry average (-1.3%).


Return on Equity

High ROE: 532810's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is Power Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 532810's short term assets (₹6,842.1B) exceed its short term liabilities (₹99.9B).

Long Term Liabilities: 532810's short term assets (₹6,842.1B) exceed its long term liabilities (₹6,183.7B).


Debt to Equity History and Analysis

Debt Level: 532810's debt to equity ratio (904.5%) is considered high.

Reducing Debt: 532810's debt to equity ratio has increased from 574.3% to 904.5% over the past 5 years.

Debt Coverage: 532810's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 532810's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Power Finance current dividend yield, its reliability and sustainability?

10.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532810's dividend (10.85%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: 532810's dividend (10.85%) is in the top 25% of dividend payers in the Indian market (2.29%)


Stability and Growth of Payments

Stable Dividend: 532810's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532810's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), 532810's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Ravinder Dhillon (57 yo)

0.33

Tenure

₹4,642,109

Compensation

Shri Ravinder Singh Dhillon serves as Chairman and Managing Director of Power Finance Corporation Ltd. since June 1, 2020 and serves as its Executive Director since June 12, 2019. He served as a Director o ...


CEO Compensation Analysis

Compensation vs Market: Ravinder's total compensation ($USD63.29K) is below average for companies of similar size in the Indian market ($USD778.84K).

Compensation vs Earnings: Insufficient data to compare Ravinder's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ravinder Dhillon
Chairman & MD0.33yr₹4.64m0.0010%
₹ 2.3m
Manohar Balwani
Compliance Officer & Company Secretary6.5yrs₹4.99mno data
Praveen Singh
Director of Commercial & Executive Director2.17yrs₹7.34m0.0012%
₹ 2.8m
Parminder Chopra
Director of Finance & Director0.25yrno data0.000080%
₹ 184.3k
S. Rao
Head of The Public Relations Department4.83yrsno datano data
Ashwani Sharma
Executive Vice Presidentno datano datano data
Birendra Kumar
Chief Vigilance Officer4.33yrsno datano data
B.S. Bisht
Chief Risk Officer1.08yrsno datano data
N. Tyagi
Executive Director of Facilitation Group and Chief Executive Officer of PFC Consulting Limitedno datano datano data
Nalini Vajani
Executive Director of Fin Ed (Finance) - I and CEO of PFC Capital Advisory Services Ltdno datano datano data
Arunava Chakravarti
Executive Director of PFC Green Energy Limitedno datano datano data

2.2yrs

Average Tenure

58yo

Average Age

Experienced Management: 532810's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ravinder Dhillon
Chairman & MD0.33yr₹4.64m0.0010%
₹ 2.3m
Praveen Singh
Director of Commercial & Executive Director2.17yrs₹7.34m0.0012%
₹ 2.8m
Parminder Chopra
Director of Finance & Director0.25yrno data0.000080%
₹ 184.3k
Inder Kapoor
Chairman of National Power Exchange Limitedno datano datano data
Anil Kumar
Part Time Chairman of Jharkhand Integrated Power Limited13.58yrsno datano data
Gouri Chaudhury
Independent Director2.92yrs₹659.00kno data
Ram Mishra
Independent Director1.25yrs₹449.56kno data
Mritunjay Narayan
Government Nominee Director1.17yrsno datano data

1.3yrs

Average Tenure

61yo

Average Age

Experienced Board: 532810's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Power Finance Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Power Finance Corporation Limited
  • Ticker: 532810
  • Exchange: BSE
  • Founded: 1986
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: ₹230.347b
  • Shares outstanding: 2.64b
  • Website: https://www.pfcindia.com

Location

  • Power Finance Corporation Limited
  • Urjanidhi
  • 1, Barakhamba Lane
  • New Delhi
  • Delhi
  • 110001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFCNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2007
532810BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2007

Biography

Power Finance Corporation Limited provides financial products and related advisory, and other services to the power sector in India. The company offers fund based financial policies/products, including tak ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:45
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.