Government company Power Finance Corporation (NSE: PFC) closed with a gain of about 8.5% today.
After the second quarter results, analysts are bullish on the stock. 10 analysts have given this stock a Buy rating.
They estimate that this stock can go up to ₹ 680 per share. This stock has slipped by 22% since its peak of ₹ 580 per share.
There is a gain of about 51% after the new target as compared to Friday’s closing price.
In the September quarter, the total disbursement of PFC company increased by 45% year-on-year to ₹ 47,633 crore.
Disbursement has almost doubled quarterly. The company’s disbursement increased by 9.8% on an annual basis to ₹ 4.93 lakh crore.
During the July-September quarter, the asset quality of the company has also seen improvement quarterly.
The company’s gross NPA was 3.38% in June, which has now come down to 2.71%. During this period, net NPA has also come down from 0.87% to 0.72%.
What Is The Analyst’s Opinion On The Stock
A top Brokerage firm has a target price of ₹ 610 per share with a rating of Outperform.
The brokerage firm said that despite a strong recovery in disbursement, the company’s loan growth has seen a slowdown.
A large part of the company’s repayments were to be made in the first half of the financial year.
About 96% of the company’s infrastructure loans will be to government companies.
For a return on equity (RoE) profile of 18%, CLSA says that the valuation of 1.1 times for the financial year 2026 is cheap.
Another brokerage firm has also given an Outperform opinion on this stock and has set a target price of ₹ 620 per share on PFC.
This company kept its guidance throughout the year. The asset quality of the company is continuously improving.
Another well-known brokerage firm has given a Buy rating on this stock along with setting a target price of ₹ 670 per share.
The brokerage says that the company’s credit cycle looks good and due to the write-back of previous assets, the total credit cost has been negative in the September quarter.
A renowned brokerage firm has set the highest target of ₹ 680 per share on this stock.
Quick Fact
| Company name | Power Finance Corporation |
|---|---|
| Recent gain | 8.5% |
| Buy rating count | 10 |
| Possible target price | ₹ 680 |
| Price drop from peak | 22% |
| September quarter disbursement growth | 45% YoY |
| September quarter disbursement total | ₹ 47,633 crore |
| Total disbursement (annual) | ₹ 4.93 lakh crore |
| Gross NPA (June) | 3.38% |
| Gross NPA (September) | 2.71% |
| Net NPA (June) | 0.87% |
| Net NPA (September) | 0.72% |
| CLSA’s possible target price | ₹ 610 |
| CLSA rating | Outperform |
| Infrastructure loan to govt companies | 96% |
| Expected RoE | 18% |
| Bernstein’s possible target price | ₹ 620 |
| Bernstein rating | Outperform |
| UBS’s possible target price | ₹ 670 |
| UBS rating | Buy |
| DAM Capital’s highest possible target price | ₹ 680 |
| Loan growth trend | Slowing |
| Credit cost (September) | Negative |
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