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 ResultsJun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Sales 14599155301587316193169141815818435181491896519268
Expenses 61317607804184143716412135190820931747
Operating Profit13986137701509312009154771651716300162411687217521
OPM %0.960.890.950.740.920.910.880.890.890.91
Other Income208126523187161115
Interest9938101531026410491108691124011330112441131311235
Depreciation5668667779
Profit before tax4063362048341576462652894970500655646291
Tax %0.290.310.30.560.230.190.20.220.180.2
Net Profit218518712597469268332492894292234803748
EPS in Rs8.287.099.841.7810.1612.3110.9611.0713.1814.2

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 SheetMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Sep 2021
Share Capital 132013201320264026402640264026402640
Reserves262023109134708342053719444481467605812764610
Borrowings159215187795200660202993441151539488596561659682668077
Other Liabilities7582870510531197004154642260485605525756783
Total Liabilities194320228912247220259537522531628869694521775707792111
Fixed Assets 72102198296161196238341684
CWIP124710512919928833627
Investments275282230314554934604440434993818
Other Assets 194220228280244745255990516749623871689590771530787582
Total Assets194320228912247220259537522531628869694521775707792111

SHARE HOLDING SYNOPSIS

Share HoldingMar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Promoters 59.0559.0556.1655.9955.9955.9955.9955.9955.9955.9955.99
FIIs 16.6317.8419.3118.918.9217.4516.8117.3717.3217.3517.88
DIIs 18.717.719.3220.2620.421.1220.6720.1819.5519.3713.66
Public 5.635.415.224.854.685.436.536.457.147.2812.47

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 18th Oct 2021 with a target achievement of 22%.

DISCLAIMER

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