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

Power Finance Corporation Limited's projected revenue decline from last year is likely to make investors cautious. Lower revenues often hurt a company's bottom line, leading investors to be concerned about the company's ability to maintain profitability and deliver strong financial results in the future.

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

PFC's current ratio of 421.855 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that PFC is financially well-prepared to meet its liabilities without difficulty.
Power Finance Corporation Limited's elevated debt-to-equity ratio highlights its heavy reliance on debt. This high leverage increases the company's exposure to financial risk, making it more vulnerable to market fluctuations and economic downturns.
PFC's positive gross and operating margins highlight its profitability and operational efficiency. These strong margins demonstrate the company's ability to control costs while generating substantial revenue, contributing to a healthy financial performance.
PFC's forward EPS is lower than its trailing EPS, signaling that the company is projected to experience reduced profitability this year. This suggests a downward trend in earnings, which could raise concerns among investors about PFC's financial outlook.

Price projections:

Price projections for PFC
Price projections for PFC

The current price of Power Finance Corporation Limited aligns with projections, showing no clear risks or opportunities. This lack of volatility suggests a stable environment for investors, who may wish to hold off on major adjustments until market conditions change.

Recommendation changes over time:

Recommendations trend for PFC
Recommendations trend for PFC


A recent buy bias from analysts toward Power Finance Corporation Limited may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that Power Finance Corporation Limited might be an appealing option for those looking to grow their wealth through stock market investments.