Power Finance Corporation Ltd.
NSE: PFCPower Finance Corporation Ltd.: A 30-second snapshot
PFC trades at a PE of 4.83x (forward 4.21x) with a profit margin of 54.48% and dividend yield of 4.05%, consistent with its role as a PSU power-sector infrastructure lender funded largely through market borrowings (debt/equity near 5.37x). The stock is down 20.09% from its 52-week high and trades below both its 50-day (₹416.79) and 200-day (₹397.58) moving averages, with RSI at 29.46 (oversold) after a 13.89% decline over the past three months, including an up-to-8% drop tied to Q1 FY27 results that CLSA called 'mixed.' Mean analyst rating stands at 1.14286 across 14 analysts (1-5 scale, lower = more constructive).
P/E
4.8
Forward P/E
4.2
ROE
—
Debt / Equity
536.84
Profit Margin
+54.5%
Div. Yield
+4.0%
5Y ROE > 15%
4/5
5Y FCF > 0
0/5
Quality
61/100
News
8 headlines · 3 positive · 2 negative
PFC, REC shares fall up to 8% as CLSA cuts target prices on 'mixed' Q1 results - Moneycontrol.com
Moneycontrol.com
Power Finance Corporation Limited Reports Earnings Results for the First Quarter Ended June 30, 2026 - marketscreener.com
marketscreener.com
PFC's Q1 profit growth stalls despite bigger loan book; revenue flat - PSU Watch
PSU Watch
REG - Power Finance Corp. Power Finance - 10OE - 1st Quarter Results - TradingView
TradingView
PFC Q1 Results Today: Time, Earnings Call, Dividend, What To Watch, Share Price - NDTV Profit
NDTV Profit
Recent context
- ·CLSA cut target prices on PFC and REC after Q1 results it called 'mixed,' with shares falling as much as 8% (Moneycontrol, Aug 10, 2026).
- ·PSU Watch reported that PFC's Q1 profit growth stalled despite a bigger loan book, with revenue flat (Aug 7, 2026).
- ·News sentiment across 8 tracked articles split 3 positive / 3 neutral / 2 negative, netting to an overall 'neutral' label around the Q1 earnings cycle.
Strengths
- +PE of 4.83x (forward 4.21x) ranks 1st of 6 in the assigned peer set, and profit margin of 54.48% is high for a lending institution.
- +Dividend yield of 4.05%, in line with typical PSU-lender payout patterns.
- +ROE was above 15% in 4 of the years captured in the persistence record (consistency score 57/100).
- +Mean analyst rating of 1.14286 across 14 covering analysts (1-5 scale, lower = more constructive).
Weaknesses
- −Free cash flow was positive in 0 of the years captured in the persistence record, and the debt trend is classified as rising, reflecting continued reliance on market borrowings to fund the loan book.
- −Trading below both the 50-day (₹416.79) and 200-day (₹397.58) moving averages, 20.09% off its 52-week high, with RSI at 29.46 (oversold) and a 13.89% decline over the past three months.
- −Q1 FY27 results drew a negative sell-side reaction: CLSA cut target prices citing 'mixed' results and shares fell as much as 8%; profit growth stalled despite a larger loan book, with revenue reported flat.
- −5-year revenue growth of 0.8% and 5-year earnings growth of 2.1% are both modest, and current-period ROE is reported as null in the latest snapshot despite the persistence record showing above-15% ROE in 4 of the tracked years.
Open questions
- ?Does the rising-debt trend alongside zero years of positive free cash flow reflect normal NBFC loan-book funding, or a shift in borrowing cost/access worth tracking more closely?
- ?What is driving the gap between profit-margin level (54.48%) and comparatively slow revenue growth (0.8% over five years) -- is that margin profile a function of lending spread, provisioning, or something else?
- ?How does flat Q1 revenue despite a larger loan book reconcile with the yield and margin dynamics embedded in the reported profit margin?
- ?Given the stock is down 20% from its 52-week high and trading below both major moving averages while sell-side ratings remain skewed constructive (1.14286 mean across 14 analysts), what assumptions underlie that sell-side view relative to the recent price action?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| PFC | Power Finance Corporation Ltd.You're viewing | 4.8 | — | 52 |
| Industry avg | across 5 peers | 30.8 | +12.7% | 51 |
| AXISBANK | Axis Bank Ltd. | 13.8 | +13.3% | 70 |
| HDFCBANK | HDFC Bank Ltd. | 15.9 | +13.8% | 66 |
| BAJFINANCE | Bajaj Finance Ltd. | 33.6 | — | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 32.1 | — | 37 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 58.7 | +10.8% | 33 |
Technical state
Current price
₹385.15
SMA 50
₹416.79
SMA 200
₹397.58
RSI (14)
29.5 (oversold)
From 52w high
-20.1%
1Y return
-3.0%
3M return
-13.9%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumFree cash flow was positive in 0 of the years captured in the persistence record, and the debt trend is classified as rising. As a PSU power-sector NBFC that funds its loan book primarily through market borrowings, negative free cash flow by conventional calculation and a debt/equity ratio near 5.37x (536.837 on the raw percent-scaled field) are structural to the lending model rather than a standalone solvency signal, but the rising-debt classification means continued market access at manageable borrowing cost remains a dependency worth tracking.
- mediumPrice of ₹385.15 sits below both the 50-day moving average (₹416.79) and 200-day moving average (₹397.58), is down 20.09% from its 52-week high, and RSI reads 29.46 (oversold) after a 13.89% decline over the trailing three months.
- mediumQ1 FY27 results (reported first week of August 2026) drew a negative sell-side reaction: CLSA cut target prices on PFC and REC citing 'mixed' results, with shares falling as much as 8% (Moneycontrol, Aug 10). Separately, PSU Watch reported profit growth stalled despite a bigger loan book, with revenue reported flat.
- lowThe assigned peer set (Axis Bank, Bajaj Finserv, Bajaj Finance, HDFC Bank, HDFC Life) consists of private retail banks, a consumer NBFC, and a life insurer -- none share PFC's PSU power-sector infrastructure-lending business model. PFC's 1st-of-6 PE ranking and 3rd-of-6 quality-score ranking against this set should be read with that context.
- lowCurrent-period ROE is reported as null in the latest fundamental snapshot even though the persistence record shows ROE above 15% in 4 of the years tracked and an analyst count of 14 is present -- a data-completeness gap in the current-quarter metric.
Cross-section contradictions
- Mean analyst rating is 1.14286 across 14 analysts (1-5 scale, lower = more constructive) -- a highly constructive skew -- while price action is negative: the stock trades below both its 50- and 200-day moving averages, is down 20.09% from its 52-week high, and fell as much as 8% around Q1 results with CLSA cutting target prices. Sell-side consensus level and recent price/news reaction diverge.
- PE of 4.83x ranks 1st of 6 in the assigned peer set even though free cash flow was positive in 0 of the tracked years and the consistency score is only 57/100 -- headline valuation cheapness does not align with cash-generation persistence, though the NBFC funding-model context caveats this comparison.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 11 Aug 2026 · rotates through NIFTY 500 every ~5 days