Planning to buy PFC shares? If so, then this blog is for you. Here we will discuss everything you need to know about the company overview , PFC Share Price, strengths and weaknesses and more. Keep reading!
Power Finance Corporation Limited —Overview
Power Finance Corporation Limited is a non-banking finance company founded in 1986. It has its headquarters located in New Delhi, India. It is a provider of financial products, services, and advisory to the power sector in India.
Business Area of PFC
PFC is known for providing financial assistance to Power sector services for meeting development and financing requirements of the power sector. In order to fulfil the fund requirement, PFC raises funds by issuing securities such as bonds and term loans from FIs, Banks, and ECBs.
Services and Products
- Fund Based Products and Policies
- Non-fund Based Products and Policies
- Non-fund Based Consultancy Solutions
Besides, PFC also provides letters of comfort, guarantee policy for credit enhancement, etc.
PFC Share Price Analysis
Over the past few years, the number of people investing in financial assets has grown to a significant level. Further, the Indian mutual fund industry is very close to reaching 7%. This lower penetration of the MF industry is providing great opportunities for the industry to expand and grow. Moreover, the migration to the financial sector, sustainable performance and distribution are pushing the industry towards growth.
In addition, the digitalization of the country and increasing financial literacy rate among the investors along with the increasing number of available mediums are attracting more and more people to the financial markets.
Below are some points that will help you understand the status and performance of Power Finance Corporation Limited.
Profit margin (PAT margin) of any company determines how well it controls its cost. It is an important indicator to the financial performance and health of the company.
Talking about Power Finance Corporation Limited, its net profit is RS 5,655.14 Crore and it has a Profit Margin of 16.60%. Further, its compound growth of profit is 38.55% in the last three years.
EPS value indicates that the management of the company is increasing its efficiency and performance. Hence, investors should make sure that the EPS value of the company they’re planning to invest in, is growing faster than its revenue. The EPS figure of Power Finance Corp is 47.13, which is a good sign.
Return on Equity (ROE)
If the ROE of any company is greater than or equal to 20,then it can be considered as healthy. And if this ratio is less than 20, but greater than or equal to 10,then it is average, else it has a poor ROE.
ROE is the value of returns investors get on the capital they’ve invested in. The ROE value of PFC is 12.79%, which is neither good, nor bad. It is average.
Price to Earnings ratio of a company is used to determine if its stocks are worth its current price. The P/E ratio of PFC is at 4.3 for the latest year.
P/B ratio is the best metrics to value companies like Power Finance Corp. At present, the P/B ratio of this company is 0.65. You can compare this with the PFC share price to know whether it is overvalued or undervalued.
PFC Share Price
Currently, the Power Finance Corporation share price is ₹135.20.
Should You Invest in PFC Limited?
From the PFC share price analysis, it is clear that the company is trading at 0.54 times more than its book value. Further, the operating income of PFC has grown to a great extent with a CAGR of 12.74%. On the downside, PAT margin is reduced by 7.51%. Consider all these factors before investing in Power Finance Corporation Limited.