PFC SHARE PRICE NSE: TARGET ACHIEVED!!!

Hello and welcome back to one more interesting article wherein we’ll discuss the PFC share price nse which was analysed earlier and has achieved the target predicted by us in a span of 55 trading sessions.

Let’s check the parameters which helped PFC share price nse to achieve its total target of 22% approximately in 55 trading sessions.

BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT

The company is trying to enter new markets by entering the segments of e-mobility, utility scale energy storage, etc.

PFC has been awarded with “MAHARATNA” status by the Indian government which will help the company to provide competitive financing for the power sector. The hidden agenda of the government is to provide affordable and reliable “Power for all 24X7”.

The board of Maharatna central public sector enterprise (CPSE) has the authority to make equity investments to take over financial joint ventures and wholly owned subsidiaries. It can also undertake mergers and acquisitions in India and abroad but can capitalise 15% of its networth which is limited to ₹ 5,000 Cr in one project.

PFC has a great opportunity related to business due to the revamped distribution sector scheme with an outlay of ₹ 3,03,758 Cr.

Loan asset book of PFC grew to 9.5% for Q1FY’22 (April-June 2021) which was ₹7,49,373 Cr. In the year ago period {Q1FY’21 (April-June 2020)}the loan asset book value was ₹ 6,84,383 Cr

Reduction in net NPA (Nonperforming assets) i.e., bad loans to 1.80% in Q1 FY ’22 (April-June 2021). In the year ago period the net NPA was 3.15%.

PFC and its subsidiary REC ltd sanctioned ₹ 1,35,537 Cr and disbursed ₹ 79,678 Cr under the Atma Nirbhar Distribution company liquidity support announced by the Government of India.

For the development of Hydro projects, PFC has signed a pact with NHPC Ltd to help with funds.

Power Finance Corporation had a change in the board of management in the form of Rajiv Ranjan Jha who took charge as Director of projects.

The company also raised €300 M in Euro Green Bond issuance which took place for the first time.

FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT

QUARTERLY RESULTS:   

Figures in Rs. Crores

Quarterly Results	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Sales	14599	15530	15873	16193	16914	18158	18435	18149	18965	19268
Expenses	613	1760	780	4184	1437	1641	2135	1908	2093	1747
Operating Profit	13986	13770	15093	12009	15477	16517	16300	16241	16872	17521
OPM %	0.96	0.89	0.95	0.74	0.92	0.91	0.88	0.89	0.89	0.91
Other Income	20	8	12	65	23	18	7	16	11	15
Interest	9938	10153	10264	10491	10869	11240	11330	11244	11313	11235
Depreciation	5	6	6	8	6	6	7	7	7	9
Profit before tax	4063	3620	4834	1576	4626	5289	4970	5006	5564	6291
Tax %	0.29	0.31	0.3	0.56	0.23	0.19	0.2	0.22	0.18	0.2
Net Profit	2185	1871	2597	469	2683	3249	2894	2922	3480	3748
EPS in Rs	8.28	7.09	9.84	1.78	10.16	12.31	10.96	11.07	13.18	14.2

For the quarter ended 30-09-2021, the company reported a sales of ₹ 19,268 Cr which is an increase of 6% from the sales registered in the year ago period.

Expense has reduced from the previous quarter which is a great sign for the company and also this has not led to reduction in the sales.

In the quarter ended 30-09-21, the net profit also rose to its all-time high of ₹ 3,748 Cr.

BALANCE SHEET:

Reserves have increased exponentially and there is a great interest shown by the investors in PFC share price nse.

In the quarter ended 30-09-21, the company has increased it’s borrowing slightly.

Figures in Rs. Crores

Balance Sheet	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Sep 2021
Share Capital	1320	1320	1320	2640	2640	2640	2640	2640	2640
Reserves	26202	31091	34708	34205	37194	44481	46760	58127	64610
Borrowings	159215	187795	200660	202993	441151	539488	596561	659682	668077
Other Liabilities	7582	8705	10531	19700	41546	42260	48560	55257	56783
Total Liabilities	194320	228912	247220	259537	522531	628869	694521	775707	792111
Fixed Assets	72	102	198	296	161	196	238	341	684
CWIP	1	2	47	105	129	199	288	336	27
Investments	27	528	2230	3145	5493	4604	4404	3499	3818
Other Assets	194220	228280	244745	255990	516749	623871	689590	771530	787582
Total Assets	194320	228912	247220	259537	522531	628869	694521	775707	792111

SHARE HOLDING SYNOPSIS

Share Holding	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Promoters	59.05	59.05	56.16	55.99	55.99	55.99	55.99	55.99	55.99	55.99	55.99
FIIs	16.63	17.84	19.31	18.9	18.92	17.45	16.81	17.37	17.32	17.35	17.88
DIIs	18.7	17.7	19.32	20.26	20.4	21.12	20.67	20.18	19.55	19.37	13.66
Public	5.63	5.41	5.22	4.85	4.68	5.43	6.53	6.45	7.14	7.28	12.47

Promoters have maintained their position in this stock with a whopping 55.99%.

FIIs as well as retail investors have increased their stake in this company which is quite interesting.

Now, let’s deep dive into the technicalities of PFC share price nse.

CHART PATTERN ANALYSIS

In the previous analysis, we did highlight the formation of the complex reverse head and shoulder pattern.  

Click here for previous analysis on PFC share price nse.

PFC share price target was achieved on 18^th Oct 2021 with a target achievement of 22%.

DISCLAIMER