NSEI:PFC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued 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


Market Performance


7 Day Return

7.7%

PFC

5.4%

IN Diversified Financial

2.4%

IN Market


1 Year Return

24.4%

PFC

5.5%

IN Diversified Financial

8.0%

IN Market

Return vs Industry: PFC exceeded the Indian Diversified Financial industry which returned 5.5% over the past year.

Return vs Market: PFC exceeded the Indian Market which returned 8% over the past year.


Shareholder returns

PFCIndustryMarket
7 Day7.7%5.4%2.4%
30 Day-0.5%-0.4%2.5%
90 Day-9.4%-2.9%3.6%
1 Year24.4%24.4%7.8%5.5%10.3%8.0%
3 Year-11.5%-19.7%4.1%-4.4%22.3%16.0%
5 Year-12.0%-28.1%21.7%-5.4%42.8%29.3%

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

Valuation

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

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFC (₹101.5) is trading below our estimate of fair value (₹198.89)

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 (2.7x) compared to the Diversified Financial industry average (11.9x).

PE vs Market: PFC is good value based on its PE Ratio (2.7x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PFC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: PFC is overvalued based on its PB Ratio (0.6x) compared to the IN Diversified Financial industry average (0.5x).


Next Steps

Future Growth

How is Power Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFC's forecast earnings growth (6.1% per year) is below the savings rate (7.6%).

Earnings vs Market: PFC's earnings (6.1% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: PFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: PFC's revenue is expected to decline over the next 3 years (-3.2% per year).

High Growth Revenue: PFC's revenue is forecast to decline over the next 3 years (-3.2% 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 (15.2%).


Next Steps

Past Performance

How has Power Finance performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PFC's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: PFC's earnings growth over the past year (32.6%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: PFC earnings growth over the past year (32.6%) exceeded the Diversified Financial industry 13%.


Return on Equity

High ROE: PFC's Return on Equity (20%) is considered low.


Return on Assets

ROA vs Industry: PFC's Return on Assets is below or equal to the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PFC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Power Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: PFC's debt is covered by short term assets (assets are 1.142180x debt).


Financial Institutions Analysis

Asset Level: PFC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PFC has a sufficient allowance for bad loans.

Low Risk Liabilities: PFC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PFC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PFC has an appropriate level of bad loans.


Next Steps

Dividend

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

7.68%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%0.6%markettop25%2.4%industryaverage3.2%forecastin3Years7.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PFC's dividend (7.68%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: PFC's dividend (7.68%) is in the top 25% of dividend payers in the Indian market (2.41%)

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: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFC's dividends in 3 years are forecast to be well covered by earnings (25.3% payout ratio).


Next Steps

Management

What is the CEO of Power Finance's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Rajeev Sharma (59yo)

3yrs

Tenure

₹18,476,181

Compensation

Mr. Rajeev S. Sharma, IAS, has been the Managing Director and the Chairman of Power Finance Corporation Limited since October 1, 2016. Mr. Sharma serves as the Director of F&A at Himachal Pradesh State Ele ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Rajeev's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

2.6yrs

Average Tenure

59yo

Average Age

Experienced Management: PFC's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

63yo

Average Age

Experienced Board: PFC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell₹42,838,01617 Oct 19
India
EntityCompany
Shares4,283,810
Max Price₹10.00
Sell₹763,133,13102 Aug 19
India
EntityCompany
Shares76,313,829
Max Price₹10.00
Sell₹521,457,09503 Apr 19
India
EntityCompany
Shares52,146,026
Max Price₹10.00
Sell₹1,098,078,37517 Dec 18
India
EntityCompany
Shares109,808,544
Max Price₹10.00
Sell₹1,518,48805 Dec 18
C. Ravikumar
EntityIndividual
Shares14,900
Max Price₹101.91

Ownership Breakdown


Management Team

  • Manohar Balwani

    Compliance Officer & Company Secretary

    • Tenure: 5.5yrs
    • Compensation: ₹6.73m
  • N. Tyagi (63yo)

    Executive Director of Facilitation Group and Chief Executive Officer of PFC Consulting Limited

    • Tenure: 0yrs
  • Rajeev Sharma (59yo)

    Chairman of the Board & MD

    • Tenure: 3yrs
    • Compensation: ₹18.48m
  • Ashwani Sharma (67yo)

    Executive Vice President

    • Tenure: 0yrs
  • S. Rao

    Head of The Public Relations Department

    • Tenure: 3.8yrs
  • Birendra Kumar

    Chief Vigilance Officer

    • Tenure: 3.3yrs
  • Naveen Gupta (59yo)

    CFO, Director of Finance & Director

    • Tenure: 2.2yrs
    • Compensation: ₹10.55m
  • Praveen Singh (57yo)

    Director of Commercial & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹5.61m
  • Ravinder Dhillon (56yo)

    Director of Projects & Executive Director

    • Tenure: 0.3yrs
  • B.S. Bisht

    Chief Risk Officer

    • Tenure: 0.08yrs

Board Members

  • Inder Kapoor (63yo)

    Chairman of National Power Exchange Limited

    • Tenure: 0yrs
  • Rajeev Sharma (59yo)

    Chairman of the Board & MD

    • Tenure: 3yrs
    • Compensation: ₹18.48m
  • Anil Kumar (66yo)

    Part Time Chairman of Jharkhand Integrated Power Limited

    • Tenure: 12.6yrs
  • Sitaram Pareek (68yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹668.20k
  • Naveen Gupta (59yo)

    CFO, Director of Finance & Director

    • Tenure: 2.2yrs
    • Compensation: ₹10.55m
  • Gouri Chaudhury (77yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹546.20k
  • Praveen Singh (57yo)

    Director of Commercial & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹5.61m
  • Ravinder Dhillon (56yo)

    Director of Projects & Executive Director

    • Tenure: 0.3yrs
  • R. Mishra (67yo)

    Independent Director

    • Tenure: 0.3yrs
  • Mritunjay Narayan

    Government Nominee Director

    • Tenure: 0.2yrs

Company Information

Power Finance Corporation Limited's company bio, 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: ₹258.992b
  • 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

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 Analysis2019/10/22 12:44
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.