PFC

Power FinanceNSEI:PFC Stock Report

Market Cap

₹365.1b

7D

2.3%

1Y

48.1%

Updated

19 Sep, 2021

Data

Company Financials +
PFC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends4/6

PFC Overview

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory, and other services to the power sector in India.

Power Finance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Power Finance
Historical stock prices
Current Share Price₹138.30
52 Week High₹82.05
52 Week Low₹140.80
Beta0.43
1 Month Change11.17%
3 Month Change11.17%
1 Year Change48.07%
3 Year Change71.16%
5 Year Change12.76%
Change since IPO147.74%

Recent News & Updates

Jul 11
With EPS Growth And More, Power Finance (NSE:PFC) Is Interesting

With EPS Growth And More, Power Finance (NSE:PFC) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Mar 29
Is Power Finance Corporation Limited (NSE:PFC) An Attractive Dividend Stock?

Is Power Finance Corporation Limited (NSE:PFC) An Attractive Dividend Stock?

Is Power Finance Corporation Limited ( NSE:PFC ) a good dividend stock? How can we tell? Dividend paying companies with...

Shareholder Returns

PFCIN Diversified FinancialIN Market
7D2.3%0.8%1.2%
1Y48.1%108.0%59.0%

Return vs Industry: PFC underperformed the Indian Diversified Financial industry which returned 108% over the past year.

Return vs Market: PFC underperformed the Indian Market which returned 59% over the past year.

Price Volatility

Is PFC's price volatile compared to industry and market?
PFC volatility
PFC Beta0.43
Industry Beta1.16
Market Beta1

Stable Share Price: PFC is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PFC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986483Ravinder Dhillonhttps://www.pfcindia.com

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory, and other services to the power sector in India. The company offers fund based financial policies/products, including guidelines for solar and wind power generation projects, as well as for funding private sector independent transmission projects; debt refinancing and prepayment policy for solar wind projects; takeout financing, asset acquisition, bridge and corporate loan, buyer's line of credit, credit facility for purchase of power through power exchange, energy saving project, and project and short-term loan services; financing of fuel supply projects and equipment manufacturers; grants/interest free loans for studies/consultancies; lease financing for the purchase of equipment and wind power projects; line of credit for import of coal; policy for investment in equity of power projects; guidelines for funding grid connected solar thermal private sector power generation projects; policy for underwriting of debt; refinancing of debt of commissioned projects along with additional corporate loans for new-expansion-acquisition of projects; and financial assistance to distribution franchisee. It also provides non-fund based policies/products comprising guarantees, letter of comfort, and policy for guarantee for credit enhancement.

Power Finance Fundamentals Summary

How do Power Finance's earnings and revenue compare to its market cap?
PFC fundamental statistics
Market Cap₹365.12b
Earnings (TTM)₹125.45b
Revenue (TTM)₹239.99b

2.9x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFC income statement (TTM)
Revenue₹239.99b
Cost of Revenue₹1.41b
Gross Profit₹238.58b
Expenses₹113.12b
Earnings₹125.45b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)47.52
Gross Margin99.41%
Net Profit Margin52.27%
Debt/Equity Ratio808.5%

How did PFC perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

26%

Payout Ratio

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: PFC (₹138.3) is trading below our estimate of fair value (₹346.18)

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


Price To Earnings Ratio

PE vs Industry: PFC is good value based on its PE Ratio (2.9x) compared to the Indian Diversified Financial industry average (15.6x).

PE vs Market: PFC is good value based on its PE Ratio (2.9x) compared to the Indian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: PFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PFC's PB Ratio (0.6x) is in line with the IN Diversified Financial industry average.


Future Growth

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

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFC's earnings are forecast to decline over the next 3 years (-0.6% per year).

Earnings vs Market: PFC's earnings are forecast to decline over the next 3 years (-0.6% per year).

High Growth Earnings: PFC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if PFC's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if PFC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFC's Return on Equity is forecast to be low in 3 years time (16.8%).


Past Performance

How has Power Finance performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFC has high quality earnings.

Growing Profit Margin: PFC's current net profit margins (52.3%) are higher than last year (35.1%).


Past Earnings Growth Analysis

Earnings Trend: PFC's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: PFC's earnings growth over the past year (64.6%) exceeds its 5-year average (19.2% per year).

Earnings vs Industry: PFC earnings growth over the past year (64.6%) exceeded the Diversified Financial industry 25.6%.


Return on Equity

High ROE: Whilst PFC's Return on Equity (20.44%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Power Finance's financial position?


Financial Position Analysis

Short Term Liabilities: PFC's short term assets (₹7,647.5B) exceed its short term liabilities (₹151.2B).

Long Term Liabilities: PFC's short term assets (₹7,647.5B) exceed its long term liabilities (₹6,787.9B).


Debt to Equity History and Analysis

Debt Level: PFC's debt to equity ratio (808.5%) is considered high.

Reducing Debt: PFC's debt to equity ratio has increased from 560% to 808.5% over the past 5 years.

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

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


Balance Sheet


Dividend

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

8.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFC's dividend (8.86%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: PFC's dividend (8.86%) is in the top 25% of dividend payers in the Indian market (1.45%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.8%), PFC'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?

3.1yrs

Average management tenure


CEO

Ravinder Dhillon (58 yo)

1.25yrs

Tenure

₹7,713,230

Compensation

Mr. Ravinder Singh Dhillon serves as Chairman of the Board, Chief Executive Officer and Managing Director of Power Finance Corporation Ltd. since June 1, 2020 and serves as its Executive Director since Jun...


CEO Compensation Analysis

Compensation vs Market: Ravinder's total compensation ($USD104.68K) is below average for companies of similar size in the Indian market ($USD715.65K).

Compensation vs Earnings: Ravinder's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PFC's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: PFC's board of directors are not considered experienced ( 1.7 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 employee growth, exchange listings and data sources


Key Information

  • Name: Power Finance Corporation Limited
  • Ticker: PFC
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: ₹365.123b
  • Shares outstanding: 2.64b
  • Website: https://www.pfcindia.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 12:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.