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Power Finance Corporation Ltd

PFCFinancial Institution
371.85+0.00 (+0.00%)
As on 14 Jan 2026, 11:02 amMarket Open

Fundamental Score

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Power Finance Corporation Ltd Share Price Live NSE/BSE

No data
High
0.00
Low
0.00
Volume
0
Change
+0.00%

Profitability Metrics

Excellent

Return on Equity

21.01%
Poor

Return on Capital Employed

9.73%
Excellent

Operating Profit Margin (5Y)

94.48%
Excellent

Dividend Yield

4.38%

Valuation Metrics

Excellent

Price to Earnings

4.81x

Market Capitalization

1.19L (Cr)

Industry P/E

22.38x

Growth Metrics

Poor

YoY Quarterly Profit Growth

8.31%
Poor

YoY Quarterly Sales Growth

12.32%
Good

Sales Growth (5Y)

11.49%
Excellent

EPS Growth (5Y)

26.42%
Excellent

Profit Growth (5Y)

26.42%

Financial Health

Poor

Debt to Equity

7.88x
Poor

Interest Coverage

1.62x
Poor

Free Cash Flow (5Y)

-3.21L (Cr)

Ownership Structure

Good

Promoter Holding

55.99%
Good

FII Holding

18.84%
Good

DII Holding

16.04%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
55.99%
Promoter Holding
1.19L (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of PFC across key market metrics for learning purposes.

Positive Indicators

9 factors identified

Strong Return on Equity (21.01%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Strong Operating Margins (94.48%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Attractive Valuation (P/E: 4.81 vs Industry: 22.38)

Observation: Trading at discount to industry peers.

Analysis: P/E below industry average may present value opportunity if fundamentals support the business case.

Excellent EPS Growth (26.42% CAGR)

Observation: Outstanding 5-year earnings per share compound growth.

Analysis: EPS CAGR >15% indicates strong wealth creation potential and effective capital allocation over extended periods.

Strong Profit Growth Track Record (26.42% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Balanced Promoter Holding (55.99%)

Observation: Optimal balance between promoter control and public float.

Analysis: Promoter holding in 50-75% range provides management alignment while ensuring adequate liquidity.

Strong Institutional Confidence (FII+DII: 34.88%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Attractive Dividend Yield (4.38%)

Observation: Healthy dividend yield provides income component to returns.

Analysis: Dividend yield >3% offers income potential while indicating cash flow strength and shareholder-friendly policies.

Risk Factors

6 factors identified

Suboptimal ROCE (9.73%)

Observation: Returns on capital employed are below expectations.

Analysis: ROCE <10% suggests potential inefficiencies in capital allocation. Review business model and competitive positioning.

Elevated Debt Levels (D/E: 7.88)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Weak Interest Coverage (1.62x)

Observation: Limited ability to service debt obligations from earnings.

Analysis: Low interest coverage raises concerns about financial stability. Monitor cash flow and debt reduction plans.

Negative Free Cash Flow (₹-320723.45 Cr over 5Y)

Observation: Cash outflows exceed inflows, indicating capital intensity or working capital issues.

Analysis: Negative FCF requires analysis of capital expenditure cycle and working capital management efficiency.

High Debt-to-Equity Ratio

Observation: Elevated financial risk due to high leverage.

Analysis: High debt levels may strain cash flows and increase financial risk during economic downturns.

Very High Debt Levels

Observation: Excessive leverage may strain cash flows.

Analysis: Debt-to-equity above 2.0 indicates potential financial distress risk.

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Financial Statements

Comprehensive financial data for Power Finance Corporation Ltd

About PFC

Business Overview

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory services to the power, logistics, and infrastructure sectors in India. The company offers fund-based financial policies and products, such as project-specific funding; a revamped distribution sector scheme; funding for clearance of dues-LPS; a revolving bill payment facility; guidelines for solar and wind power generation projects, as well as for funding private sector independent transmission projects (ITP); a debt refinancing policy; a prepayment policy for solar wind ITP and other projects; takeout financing, asset acquisition, bridge loans, buyer's lines of credit, credit facilities for the purchase of power through power exchanges, and conventional and energy-saving projects; and project, medium, and short-term loan services. Its fund-based financial policies/products also include grants/interest-free loans for studies/consultancies; lease financing for the purchase of equipment and wind power projects; a line of credit for the import of coal; a policy for underwriting of debt; and financial assistance to distribution franchisees. The company also provides non-fund-based policies/products comprising guarantees, letters of comfort, and a policy for guarantees for credit enhancement; and non-fund-based consultancy services. Power Finance Corporation Limited was incorporated in 1986 and is headquartered in New Delhi, India.

Company Details

Symbol:PFC
Industry:Financial Institution
Sector:Financial Institution

Key Leadership

Ms. Parminder Chopra
Chairman, CEO & MD
Mr. Sandeep Kumar
CFO & Executive Director
Mr. Rajiv Ranjan Jha
Director of Projects & Executive Director

PFC Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)21.01%
Return on Capital Employed9.73%
Operating Profit Margin (5Y)94.48%
Debt to Equity Ratio7.88
Interest Coverage Ratio1.62

Growth & Valuation

Sales Growth (5Y)11.49%
Profit Growth (5Y)26.42%
EPS Growth (5Y)26.42%
YoY Quarterly Profit Growth8.31%
YoY Quarterly Sales Growth12.32%

Frequently Asked Questions

What is the current price of Power Finance Corporation Ltd (PFC)?

As of 14 Jan 2026, 11:02 am IST, Power Finance Corporation Ltd (PFC) is currently trading at ₹371.85. The stock has a market capitalization of ₹1.19L (Cr).

Is PFC share price Overvalued or Undervalued?

PFC is currently trading at a P/E ratio of 4.81x, compared to the industry average of 22.38x. Based on this relative valuation, the stock appears to be Undervalued against its sector peers.

What factors affect the Power Finance Corporation Ltd share price?

Key factors influencing PFC's price include its quarterly earnings growth (Sales Growth: 12.32%), raw material costs, government infrastructure spending, and institutional flows (FII/DII holding).

Is Power Finance Corporation Ltd a good stock for long-term investment?

Power Finance Corporation Ltd shows a 5-year Profit Growth of 26.42% and an ROE of 21.01%. Long-term investors should consider these fundamentals alongside the debt-to-equity ratio of 7.88 before investing.

How does Power Finance Corporation Ltd compare with its industry peers?

Power Finance Corporation Ltd competes with major peers in the Financial Institution. Investors should compare PFC's P/E of 4.81x and ROE of 21.01% against the industry averages to determine its competitive standing.

What is the P/E ratio of PFC and what does it mean?

PFC has a P/E ratio of 4.81x compared to the industry average of 22.38x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹5 for every ₹1 of annual earnings.

How is PFC performing according to Bull Run's analysis?

PFC has a Bull Run fundamental score of 57.2/100, which indicates moderate strength with some areas for improvement. This comprehensive rating is based on 15+ financial parameters including profitability, growth metrics, and valuation ratios.

What sector and industry does PFC belong to?

PFC operates in the Financial Institution industry. This classification helps understand the competitive landscape and sector-specific trends affecting Power Finance Corporation Ltd.

What is Return on Equity (ROE) and why is it important for PFC?

PFC has an ROE of 21.01%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Power Finance Corporation Ltd generates profits from shareholders' equity.

How is PFC's debt-to-equity ratio and what does it indicate?

PFC has a debt-to-equity ratio of 7.88, which indicates high leverage that increases financial risk. A ratio below 1.0 generally indicates conservative financing.

What is PFC's dividend yield and is it a good dividend stock?

PFC offers a dividend yield of 4.38%, which means you receive ₹4.38 annual dividend for every ₹100 invested.

How has PFC grown over the past 5 years?

PFC has achieved 5-year growth rates of: Sales Growth 11.49%, Profit Growth 26.42%, and EPS Growth 26.42%.

What is the promoter holding in PFC and why does it matter?

Promoters hold 55.99% of PFC shares, with 0.00% of promoter shares pledged. High promoter holding often indicates strong management confidence.

What is PFC's market capitalization category?

PFC has a market capitalization of ₹118986 crores, placing it in the Large-cap category.

How volatile is PFC stock?

PFC has a beta of N/A. A beta > 1 suggests the stock is more volatile than the market, while a beta < 1 suggests it is less volatile.

What is the 52-week high and low for PFC?

PFC has a 52-week high of ₹N/A and low of ₹N/A.

What is PFC's operating profit margin trend?

PFC has a 5-year average Operating Profit Margin (OPM) of 94.48%, indicating the company's operational efficiency.

How is PFC's quarterly performance?

Recent quarterly performance shows YoY Sales Growth of 12.32% and YoY Profit Growth of 8.31%.

What is the institutional holding pattern in PFC?

PFC has FII holding of 18.84% and DII holding of 16.04%. Significant institutional holding often suggests professional confidence in the stock.