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

Investors are expected to be cautious with PFC, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 421.855000
forwardPE 6.950401
debtToEquity 627.888000
earningsGrowth 0.123000
revenueGrowth 0.076000
grossMargins 0.994930
operatingMargins 0.946250
trailingEps 69.670000
forwardEps 54.990000

Power Finance Corporation Limited's current ratio being 421.855 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.
PFC's high debt-to-equity ratio points to a heavily leveraged company, with more debt than equity in its capital structure. While this can boost growth, it increases financial vulnerability in times of economic difficulty.
With positive gross and operating margins, Power Finance Corporation Limited demonstrates its profitability and efficiency. These metrics show that the company is managing costs well while generating strong revenue, highlighting robust financial health.
PFC's forward EPS, being lower than its trailing EPS, points to an expected decline in profitability. This suggests that the company's financial performance may weaken in the upcoming year.

Price projections:

Price projections for PFC
Price projections for PFC

PFC's current price concerning projections presents no discernible risks or opportunities. This balanced situation suggests a period of stability, where investors might consider holding their positions until more information becomes available.

Recommendation changes over time:

Recommendations trend for PFC
Recommendations trend for PFC


Power Finance Corporation Limited has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see Power Finance Corporation Limited as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.