Power Finance Corporation Ltd.
Banking · NSE
52-week range
₹324 – ₹487
From 52w high
-5.2%
RSI (14)
58.0
vs SMA 50 / 200
↑ 50 · ↑ 200
Power Finance Corporation (PFC) is a government-backed infrastructure lender with a trailing PE of 5.98 and a profit margin of 50.5%, trading at ₹457 — up 17.85% over 12 months and above both its 50-DMA (₹428.9) and 200-DMA (₹391.1). The company carries a debt-to-equity ratio of 603.3x, typical of the infrastructure on-lending model but far above retail banking peers in its sector group. Revenue has grown at 11.5% over 5 years while earnings have compounded at 8% over the same period.
- ✓Profit margin of 50.5% is high relative to most financial intermediaries, reflecting PFC's role as a pass-through lender with controlled operating costs and government-backed borrowing access.
- ✓5-year revenue growth of 11.5% and earnings growth of 8% indicate consistent top-line and bottom-line expansion across the period.
- ✓Stock is trading above both the 50-DMA (₹428.9) and 200-DMA (₹391.1), with RSI at 55.2 in neutral territory and a 52-week drawdown of only -6.1% from the high.
- ✓Dividend yield of 3.16% provides a measurable income component; PE of 5.98 is the lowest among the 6-company sector peer group tracked.
- ✗Debt-to-equity of 603.3x is structurally very high; while this is a characteristic of infrastructure lenders, any deterioration in power-sector borrower credit quality or a sustained rise in funding costs would compress net interest margins directly.
- ✗FCF has been positive in only 1 of the recorded years, with debt classified as trending upward, indicating the book is growing primarily through external borrowings rather than retained cash generation.
- ✗Consistency score of 56 and quality score of 48 are mid-range; ROE data for the current period is unavailable, limiting a full assessment of return on equity versus the cost of capital.
- ✗Five wholly-owned SPVs recently incorporated for transmission projects expand the off-balance-sheet risk footprint; the financial obligations and performance of these entities add a layer of monitoring complexity.
- ·PFC incorporated five wholly-owned SPVs in April–May 2026 to execute 765kV and 400kV transmission infrastructure projects, signaling active deployment of capital into power grid expansion.
- ·Rajesh Kumar Agarwal was appointed Director (Finance) in April 2026, marking a leadership change at the CFO-equivalent level; the impact on capital allocation and borrowing strategy is not yet visible in reported numbers.
- ·News flow over the past month is light (8 articles, 3 positive, 5 neutral, 0 negative), concentrated on corporate actions rather than earnings or regulatory developments — no adverse headlines detected in this period.
- ?How does PFC's net interest margin trend compare to its cost of borrowings over the past 5 years, and does the rising debt trend indicate margin compression or book expansion?
- ?What proportion of PFC's loan book is exposed to stressed state distribution companies (DISCOMs), and how are provisions trending against that exposure?
- ?Does the 5-year ROE persistence (4 of available years above 15%) reflect a structural advantage in government-backed borrowing costs, or is it sensitive to the policy interest rate environment?
- ?How do the five newly incorporated transmission SPVs affect consolidated leverage and contingent liabilities, and what is PFC's historical track record in monetizing or exiting such project vehicles?
PE
6.0
Forward PE
7.8
ROE
—
Profit margin
+50.5%
D/E
603.34
Dividend yield
+3.2%
Quality score
48/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
1/5 yrs
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.Analysis generated 11 May 2026.