Power Finance Corporation Limited (PFC) AI Stock Analysis

• Market Cap: ₹1.29T
• Dividend Yield: 4.11%
• Average Volume (3M): 233.58K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.74
• Revenue Growth: 14.06%
• EPS Growth: 17.29%
• Country: IN
• Employees: 545
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): 13.64
• Shares Outstanding: 3,300,101,800
• 10 Day Avg. Volume: 280,894
• 30 Day Avg. Volume: 233,582
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹508.00
• Price Target Upside: 28.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: ₹445.00 ▲(12.79% Upside)

The overall stock score is driven by strong financial performance, particularly in revenue and profit growth, and attractive valuation metrics. However, high leverage and negative cash flow, along with mixed technical indicators, present potential risks that moderate the 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 demonstrates strong revenue and net profit growth, with a significant improvement in net profit margin. However, the high leverage and negative operating cash flow present potential risks, 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	749.80B	1.06T	371.09B	275.17B	279.97B	267.94B
Gross Profit	416.53B	416.78B	335.72B	275.17B	280.32B	267.94B
EBITDA	214.45B	386.88B	895.63B	0.00	0.00	0.00
Net Income	229.91B	229.91B	197.61B	158.89B	140.15B	117.48B
Balance Sheet
Total Assets	11.78T	11.78T	10.39T	8.96T	7.91T	7.76T
Cash, Cash Equivalents and Short-Term Investments	95.85B	95.85B	33.89B	1.28B	9.14B	49.28B
Total Debt	9.72T	9.72T	8.62T	7.51T	6.90T	6.89T
Total Liabilities	10.23T	10.23T	9.05T	7.84T	6.95T	6.94T
Stockholders Equity	1.18T	1.18T	1.01T	841.58B	716.76B	607.67B
Cash Flow
Free Cash Flow	0.00	-931.10B	-981.44B	-748.40B	46.03B	-592.35B
Operating Cash Flow	0.00	-922.69B	-978.20B	-747.17B	49.04B	-591.43B
Investing Cash Flow	0.00	-23.12B	-34.09B	-16.94B	-5.47B	17.41B
Financing Cash Flow	0.00	942.58B	1.01T	755.37B	-52.79B	604.24B

Power Finance Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 394.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 394.55 is below the 20-day moving average (MA) of 399.64, below the 50-day MA of 408.52, and below the 200-day MA of 412.71, indicating a bearish trend. The MACD of -5.30 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 61.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
RECLTD	69 Neutral	₹959.28B	5.69		5.24%	20.32%	15.42%
PFC	68 Neutral	₹1.29T	5.30		4.11%	14.06%	17.29%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
PNB	68 Neutral	₹1.19T	7.07		2.80%	15.52%	37.23%
IRFC	65 Neutral	₹1.59T	24.21		1.86%	2.06%	3.45%
SHRIRAMFIN	62 Neutral	₹1.10T	11.37		2.18%	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.