Power Finance Corporation (PFC) Ltd., established on July 16, 1986, is a Schedule-A Maharatna Central Public Sector Enterprise (CPSE) and one of India’s leading non-banking financial institutions, operating under the administrative authority of the Ministry of Power. In July 2010, the Reserve Bank of India (RBI) designated PFC as an infrastructure finance company, and in October 2021, it received the prestigious “Maharatna” status. PFC’s registered office is in New Delhi, with regional offices in Chennai and Mumbai.
Dividend Announcement
PFC’s Board of Directors has declared a second interim dividend of ₹3.50 per equity share (equivalent to 35% of the face value of ₹10) for the fiscal year 2024-25, subject to tax deductions. The record date for determining eligible shareholders is November 25, 2024, and the payment will be made on or before December 8, 2024.
Q2 FY25 Financial Performance
For the second quarter of FY 2024-25, ending September 30, 2024, PFC reported a net profit of ₹7,215 crore, an 8.9% year-over-year (YoY) increase from ₹6,628.2 crore in the corresponding quarter of the previous year. Revenue rose by 15% YoY, reaching ₹25,721.8 crore, compared to ₹22,374.6 crore in Q2 FY24. The company’s EBITDA also saw a notable rise, increasing by 10.5% to ₹25,354.2 crore from ₹22,942.4 crore a year ago.
Technical Outlook and Stock Performance
Currently trading around ₹467, PFC’s stock appears to be in a strong technical position, with a classic rounding bottom pattern on the daily chart and support at the 50-day Exponential Moving Average (EMA) on the weekly chart. Equity research analyst Mandar Bhojane from Choice Broking notes that this technical setup, paired with increasing trading volumes, indicates bullish momentum. A close above the ₹490 level could confirm a breakout, with potential short-term price targets of ₹520 and ₹540. On the downside, support levels are at ₹450 and ₹425, which could present buying opportunities in the event of a pullback. The stock’s Relative Strength Index (RSI) of 51.30 also suggests room for an upward trend.
Additionally, PFC is trading above both its 20-day and 200-day EMAs, further supporting a favorable outlook. Given this setup, Bhojane recommends a buy at ₹467, with a stop-loss at ₹430 to manage risk effectively. This technical foundation offers an attractive entry for traders looking to benefit from PFC’s potential breakout and sustained momentum.
Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making investment decisions. Stock market investments carry risks.
Leave a Reply