PFC share price jumps 9% post Q2 results; brokerages see 16-28% potential upside in this PSU stock

PFC share price: Power Finance Corporation (PFC) share price surged nearly 9% in Monday's session after the company reported a nearly 9% increase in consolidated net profit to ₹7,214.90 crore for the September quarter, primarily driven by greater revenues.

The company reported a profit of ₹6,628.17 crore for the same duration of FY24, as stated in a BSE filing. Total income increased to ₹25,754.73 crore, up from ₹22,387.32 crore in the previous year.

For the period from April to September FY25, the company experienced a 14% increase in consolidated profit after tax (PAT) to ₹14,397 crore compared with ₹12,610 crore posted in the corresponding period last fiscal year. The company posted a 13% growth in the consolidated loan asset portfolio. moving from ₹9,23,724 crore as of September 30, 2023, to ₹10,39,472 crore at the end of September this year.

On Monday, PFC share price closed 7.15% higher at ₹481.60 apiece on the BSE. The stock touched an intraday high of ₹489.10 apiece and an intraday low of ₹452.05.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, after a period of consolidation and forming a base around 200 SMA, prices in today's session have triggered momentum on the upside, indicating a resumption of the uptrend. 

“The move is likely to continue as we are seeing fresh long formations and a good increase in volume. Strong support is at 465 and any dip towards it is likely to get bought into; 510 is immediate resistance,” Bhosale added.

Here's what brokerages say:

Bernstein

According to media reports, after the release of Q2 results, brokerage firm Bernstein upheld its 'Outperform' rating for PFC with a target price set of ₹620. In its update for Q2FY25, Bernstein pointed out that PFC is concentrating on its essential operations and adopting favourable strategic initiatives. There has been an increase in loan disbursements, and asset quality has also been on the rise. Furthermore, net interest margins (NIMs) and returns have experienced positive growth, indicating the company’s robust performance for the quarter.

Motilal Oswal Financial Services

“PFC (standalone) trades at 1x FY26E P/BV and 5x FY26 P/E, and we believe that the risk-reward is attractive considering good visibility on loan growth, earnings growth, stressed asset resolutions, and healthy return ratios. We reiterate our BUY rating with a SoTP (Sep’26E)-based TP of ₹560,” the brokerage said.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.