Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Credit Services

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory, and other services to the power sector in India. The company offers fund based financial policies/products, including guidelines for solar and wind power generation projects, as well as for funding private sector independent transmission projects; debt refinancing and prepayment policy for solar wind projects; and takeout financing, asset acquisition, bridge loan, buyer's line of credit, credit facility for purchase of power through power exchange, energy saving project, and project and short-term loan services. Its fund based financial policies/products also include financing for purchase of equipment; grants/interest free loans for studies/consultancies; lease financing for the purchase of equipment and wind power projects; line of credit for import of coal; policy for underwriting of debt; and financial assistance to distribution franchisee. In addition, the company provides non-fund based policies/products comprising guarantees, letter of comfort, and policy for guarantee for credit enhancement; and non-fund based consultancy services. Power Finance Corporation Limited was incorporated in 1986 and is headquartered in New Delhi, India.

Revenue projections:

Revenue projections for PFC
Revenue projections for PFC

With PFC's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 287.366000
forwardPE 6.644097
debtToEquity 586.017000
earningsGrowth 0.108000
revenueGrowth -0.154000
grossMargins 0.992860
operatingMargins 0.933250
trailingEps 78.500000
forwardEps 65.117950

PFC's current ratio being 287.366 suggests that it has more than enough liquidity to cover short-term debt obligations. The company's cash reserves and current assets are sufficient to meet immediate liabilities, signaling solid financial health and minimal risk.
Power Finance Corporation Limited's high debt-to-equity ratio indicates significant leverage, meaning the company has more debt compared to its equity. While this can accelerate growth, it also increases financial risk if revenue or profits decline.
PFC's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
PFC's positive gross and operating margins indicate healthy profitability. These margins reflect the company's ability to generate income efficiently from its operations, signaling strong financial performance and effective cost management.
PFC's forward EPS being lower than its trailing EPS indicates that the company's earnings are projected to decrease. This suggests that PFC may struggle to maintain profitability at previous levels, potentially affecting its financial outlook.

Price projections:

Price projections for PFC
Price projections for PFC

PFC's current valuation aligns with projections, revealing no significant risks or opportunities. This stable environment may lead investors to adopt a wait-and-see strategy, monitoring future developments closely.

Recommendation changes over time:

Recommendations trend for PFC
Recommendations trend for PFC


Analysts have been favoring Power Finance Corporation Limited with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning Power Finance Corporation Limited as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.