Power Finance Corporation Limited (PFC) AI Stock Analysis

• Market Cap: ₹1.37T
• Dividend Yield: 4.39%
• Average Volume (3M): 278.82K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.71
• Revenue Growth: 14.06%
• EPS Growth: 17.29%
• Country: IN
• Employees: 545
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 13.64
• Shares Outstanding: 3,300,101,800
• 10 Day Avg. Volume: 252,525
• 30 Day Avg. Volume: 278,818
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹509.17
• Price Target Upside: 22.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: ₹452.00 ▲(8.54% Upside)

Power Finance Corporation Limited's overall stock score is driven by strong financial performance and attractive valuation. However, the high leverage and negative cash flow are significant risks. Technical analysis shows mixed signals, contributing to a moderate overall score.

Power Finance Corporation Limited Business Overview & Revenue Model

Company Description

Power Finance Corporation Limited (PFC) is a leading financial institution in India, primarily serving the power sector. Established in 1986, PFC operates under the administrative control of the Ministry of Power, Government of India. The company provides a range of financial products and services, including term loans, lease financing, and consultancy services, tailored to meet the needs of the power and infrastructure sectors. PFC plays a critical role in funding power generation, transmission, and distribution projects across India, supporting the country's energy infrastructure development.

How the Company Makes Money

Power Finance Corporation Limited (PFC) generates revenue primarily through its lending and financing activities in the power sector. The company extends term loans to power generation, transmission, and distribution companies for various projects, earning interest income as its main revenue stream. Additionally, PFC offers lease financing and consultancy services, which contribute to its income. The corporation also raises funds through borrowing from domestic and international markets, which it leverages to provide capital-intensive loans. PFC's partnerships with government entities, power sector utilities, and private sector participants further enhance its revenue generation capabilities by expanding its client base and project portfolio.

Power Finance Corporation Limited Financial Statement Overview

Summary

Power Finance Corporation Limited has a strong income statement with robust revenue and net profit growth. However, the balance sheet shows high leverage, and the cash flow analysis reveals challenges with negative operating cash flow, necessitating cautious financial management.

Income Statement

Power Finance Corporation Limited shows a strong income statement with consistent revenue growth. The revenue increased from 198,661.1 million to 404,500.2 million over five years, reflecting a robust growth trend. Gross profit margins are perfect given the nature of revenue. The net profit margin has improved significantly, reaching 56.8% in 2025 from 35.9% in 2020, indicating enhanced profitability. However, reliance on debt might pose risks in the long term.

Balance Sheet

The balance sheet reflects a high leverage position with a debt-to-equity ratio of approximately 8.25 in 2025. While the company has shown an increase in stockholders' equity over the years, the substantial amount of debt relative to equity presents a potential risk. The equity ratio remains relatively low, highlighting the need for cautious management of financial obligations.

Cash Flow

Cash flow analysis reveals challenges, as the operating cash flow has been negative in recent years, and free cash flow has declined. Despite negative operating cash flows, the company has managed financing effectively, maintaining liquidity. The operating cash flow to net income ratio is concerning, indicating potential issues in cash generation from operations relative to net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	404.50B	371.09B	275.17B	279.97B	267.94B
Gross Profit	404.50B	335.72B	275.17B	280.32B	267.94B
EBITDA	386.88B	895.63B	0.00	0.00	0.00
Net Income	229.91B	197.61B	158.89B	140.15B	117.48B
Balance Sheet
Total Assets	11.78T	10.39T	8.96T	7.91T	7.76T
Cash, Cash Equivalents and Short-Term Investments	95.85B	33.89B	1.28B	9.14B	49.28B
Total Debt	9.72T	8.62T	7.51T	6.90T	6.89T
Total Liabilities	10.23T	9.05T	7.84T	6.95T	6.94T
Stockholders Equity	1.18T	1.01T	841.58B	716.76B	607.67B
Cash Flow
Free Cash Flow	-931.10B	-981.44B	-748.40B	46.03B	-592.35B
Operating Cash Flow	-922.69B	-978.20B	-747.17B	49.04B	-591.43B
Investing Cash Flow	-23.12B	-34.09B	-16.94B	-5.47B	17.41B
Financing Cash Flow	942.58B	1.01T	755.37B	-52.79B	604.24B

Power Finance Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 416.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PFC, the sentiment is Positive. The current price of 416.45 is above the 20-day moving average (MA) of 413.99, above the 50-day MA of 415.82, and below the 200-day MA of 419.70, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PFC.

Power Finance Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNB	74 Outperform	₹1.22T	7.26		2.73%	15.52%	37.23%
RECLTD	69 Neutral	₹1.00T	5.96		5.01%	20.32%	15.42%
PFC	68 Neutral	₹1.37T	5.65		4.39%	14.06%	17.29%
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%
IRFC	65 Neutral	₹1.63T	24.39		1.85%	2.06%	3.45%
SHRIRAMFIN	62 Neutral	₹1.16T	11.98		2.09%	20.27%	25.95%

Power Finance Corporation Limited Corporate Events

Power Finance Corporation Announces 39th AGM and E-Voting Details

Power Finance Corporation Limited announced the publication of a notice for its 39th Annual General Meeting and e-voting information in the ‘Financial Express’ and ‘Jansatta’ newspapers. This announcement is part of its compliance with SEBI regulations, ensuring transparency and stakeholder engagement in its corporate governance practices.