STRONG 79/100

financial_services · PFC

Power Finance Corporation

Power Finance Corporation: PE above historical average. NARROW LEADERSHIP regime.

Price

₹421.1

Price 2026-07-06

5 day

-2.24%

Short-term move

1 month

-2.47%

Medium-term

Regime

NARROW LEADERSHIP

62% confidence

Market cap

₹136.3k Cr

neutral sector flow

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Price chart

430

+9.53% over period

2025-06-02318 – ₹4822026-07-02

About Power Finance Corporation

Nifty Next 50financial_services

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory services to the power, logistics, and infrastructure sectors in India. The company offers fund-based financial policies and products, such as project-specific funding; a revamped distribution sector scheme; funding for clearance of dues-LPS; a revolving bill payment facility; guidelines for solar and wind power generation projects, as well as for funding private sector independent transmission projects (ITP); a debt refinancing policy; a prepayment policy for solar wind ITP and other projects; takeout financing, asset acquisition, bridge loans, buyer's lines of credit, credit facilities for the purchase of power through power exchanges, and conventional and energy-saving projects; and project, medium, and short-term loan services. Its fund-based financial policies/products also include grants/interest-free loans for studies/consultancies; lease financing for the purchase of equipment and wind power projects; a line of credit for the import of coal; a policy for underwriting of debt; and financial assistance to distribution franchisees. The company also provides non-...

Credit ServicesNew Delhi, IndiaWebsite →

At a Glance

ValuationPE 5.3 (57%ile of 7 quarterly points (limited history), range 5-6). Trading near median.
Sector Positionfinancial_services sector. Flow: neutral. is not among current leaders. Regime: NARROW LEADERSHIP (62%).
Fundamental Score79/100 (STRONG). 2 positive flags, 5 concerns.
Historical ContextRSI oversold bounces for this stock succeeded only 0% of the time (avg -9.6% over 14 days) — not a reliable pattern.
Revenue TrendRevenue declining at -1540.0% YoY. Revenue declining — -1540.0% YoY
Bank HealthROA 2.08% · PB 1.0 · Asset growth 5.6%.

RSI pattern warning

RSI oversold bounces for this stock succeeded only 0% of the time (avg -9.6% over 14 days) — not a reliable pattern.

52-week position

Trading at 86.6% of 52-week high

52W low ₹329.952W high ₹486.5

Technicals

RSI 14

45

Trend

mixed

50 DMA

Below

200 DMA

Above

Key metrics

P/E ratio

5.3

57th pct · 7 quarterly points (limited history)

P/B

1.0

ROE

20.5%

Strong profitability — 20.5% return on equity

Market cap

₹136.3k Cr

Revenue growth

-1540.0% YoY

Promoter

56.0%

52-week range

₹329.9 – ₹486.5

86.6% of high

RSI (14)

45.0

mixed

vs 50 DMA

Below

DMA ₹438.77

Fundamental

79/100

STRONG

Trust

90/100

Verification

Coverage

100/100

HIGH

Quick Take

Power Finance Corporation scores 79/100 on fundamentals (strong). Power Finance Corporation: PE above historical average. NARROW LEADERSHIP regime.

Fundamental Score: 79/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 19.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE19.5%=
59.9%Net Margin
×
0.0xTurnover
×
9.4xLeverage

ROE of 19.47% is moderate leverage-driven and stable. Net margin 59.9%, asset turnover 0.03x, leverage 9.4x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 59.9% means the company keeps ₹59.9 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.03x means the company generates ₹0.03 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 9.4x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

%

Net

59.9%

improving

Financial Health

Peer comparison

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360ONE

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ANANDRATHI

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₹2,095.5+5.4%87.446.7%4760%₹34.1k Cr
ANGELONE

Angel One

₹345.95+5.2%34.115.5%3350%₹30.7k Cr
AADHARHFC

Aadhar Housing Finance

₹556.5+7.3%2215.8%2090%₹23.9k Cr
APTUS

Aptus Value Housing

₹285.5+6.9%15.220.1%2210%₹14.3k Cr
PFC

Power Finance Corporation

₹421.1-0.8%5.320.5%-1540%₹1.4L Cr

Bank Metrics

Return on Assets

2.08%

Benchmark: >1%

Efficiency Ratio

40.1%

Lower is better

Asset Growth

+5.6%

Year over year

PB Ratio

1.0x

Price to book

ROA of 2.08% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 1.03x — trading above book. Reasonable valuation for a bank.

Key Watchpoints

🟢

Breaks above ₹442 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹400 (-5%)

Further downside risk

🟡

PE reverts to median of 5.2 (7 quarterly points (limited history))

Valuation normalization

🟢

Financial_Services sector entering leadership

Sector rotation signal

Detected Patterns

✅ Strong ROA: ROA of 2.08% — above 1% benchmark for banks

Risk Flags

🔴 2 Critical⚠️ 3 Warning2 Positive7 total flags
🔴Operating cash flow significantly below net income
Cash Flow

OCF is only -0.2x net income. Profit not converting to cash — aggressive accounting possible.

🔴Overall governance risk: 10/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

⚠️Working capital changes are 1023% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Audit risk elevated: 10/10
Governance

Potential accounting concerns. Cross-check with earnings quality flags.

⚠️Board risk elevated: 10/10
Governance

Governance structure concerns. Independent director representation may be weak.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

High promoter holding: 56%
Governance

Strong insider alignment. Promoters have significant skin in the game.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

revenue growth (1)margin pressure (1)capex expansion (1)debt reduction (2)management outlook (4)

50 articles scanned for fundamental themes

Facts

P/E Ratio
5.3MODERATE
P/B Ratio
1.0HIGH
ROE
2047.0%HIGH
Market Cap
₹13634370.3L CrHIGH
From 52W High
87% of high
Promoter Holding
56.0%MODERATE
Institutional
24.9%
Sector Peers
10

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