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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532810 | NSE: PFC

Power Finance Corporation Ltd (PFC): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:45 pm

Market Cap 1,57,589 Cr.
Current Price 478
High / Low580/309
Stock P/E7.43
Book Value 333
Dividend Yield2.82 %
ROCE9.85 %
ROE21.3 %
Face Value 10.0
PEG Ratio0.59

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Power Finance Corporation Ltd (PFC)

Competitors of Power Finance Corporation Ltd (PFC)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tourism Finance Corporation of India Ltd 1,532 Cr. 166268/10715.5 1261.51 %10.5 %8.65 % 10.0
Power Finance Corporation Ltd (PFC) 1,57,589 Cr. 478580/3097.43 3332.82 %9.85 %21.3 % 10.0
IFCI Ltd 15,151 Cr. 58.091.4/24.0105 22.40.00 %10.2 %2.48 % 10.0
Housing & Urban Development Corporation Ltd (HUDCO) 41,243 Cr. 206354/81.216.7 85.52.01 %9.23 %13.2 % 10.0
Industry Average53,878.75 Cr227.0036.16141.731.59%9.95%11.41%10.00

All Competitor Stocks of Power Finance Corporation Ltd (PFC)

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Revenue19,26819,17618,85318,53219,33619,63920,06121,00922,39123,57224,14124,71725,722
Interest11,23511,23510,92610,83711,41312,12912,63713,67014,31314,82715,15215,51916,006
Expenses1,7471,8872,4932,1841,316900-339-65-551791-588311367
Financing Profit6,2866,0535,4355,5116,6086,6107,7637,4048,6297,9549,5778,8869,348
Financing Margin %33%32%29%30%34%34%39%35%39%34%40%36%36%
Other Income153820128241391322352033
Depreciation991012121414121314151213
Profit before tax6,2916,0825,4465,5116,6046,6197,7627,4018,6297,9619,5978,8949,368
Tax %20%20%21%17%21%21%21%19%23%21%21%19%23%
Net Profit5,0234,8944,2964,5805,2295,2416,1295,9826,6286,2947,5567,1827,215
EPS in Rs11.3610.859.7110.3511.9211.7014.1713.8714.6514.3317.0416.8016.07
Gross NPA %5.17%5.02%5.02%4.38%3.91%3.66%3.54%3.40%3.13%3.02%2.97%2.62%
Net NPA %1.72%1.86%1.60%1.57%1.27%1.15%1.03%1.00%0.98%0.86%0.85%0.84%0.80%

Last Updated: November 22, 2024, 5:04 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 22, 2024, 5:04 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Revenue17,31421,40724,98827,86127,58148,62454,10662,18971,65676,26277,68491,50898,152
Interest10,99513,05315,45616,65716,76830,28934,62740,84544,68444,70947,01757,96261,505
Expenses3317481,1032,0425,5386,5831,6967,3327,1028,2154,167-27882
Financing Profit5,9877,6078,4299,1625,27511,75217,78314,01219,87123,33826,50133,57335,764
Financing Margin %35%36%34%33%19%24%33%23%28%31%34%37%36%
Other Income1223252530429410546794769109
Depreciation65820411515242535525354
Profit before tax5,9947,6248,4469,1675,26411,77917,86214,09319,89123,38226,49633,58835,820
Tax %26%28%29%33%58%25%29%33%21%20%20%21%
Net Profit4,4385,4626,0046,1842,2368,79712,6409,47715,71618,76821,17926,46128,248
EPS in Rs13.4516.5518.1918.746.7820.2730.0621.5835.6042.4748.1559.8864.24
Dividend Payout %21%22%20%30%59%31%0%35%22%23%22%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)23.07%9.92%3.00%-63.84%293.43%43.69%-25.02%65.83%19.42%12.85%24.94%
Change in YoY Net Profit Growth (%)0.00%-13.15%-6.93%-66.84%357.27%-249.74%-68.71%90.86%-46.41%-6.57%12.09%

Power Finance Corporation Ltd (PFC) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:16%
5 Years:11%
3 Years:8%
TTM:18%
Compounded Profit Growth
10 Years:14%
5 Years:15%
3 Years:19%
TTM:18%
Stock Price CAGR
10 Years:15%
5 Years:39%
3 Years:69%
1 Year:52%
Return on Equity
10 Years:19%
5 Years:20%
3 Years:21%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:52 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1,3201,3201,3201,3202,6402,6402,6402,6402,6402,6402,6403,3003,300
Reserves22,36026,20231,09134,70834,20537,19444,48146,76058,12769,03681,51897,847106,746
Borrowings139,473159,215187,795200,660202,993441,151539,488596,561659,682660,476751,158861,961910,447
Other Liabilities6,1787,5828,70510,53119,70041,54642,26048,56055,25758,84860,79675,77082,868
Total Liabilities169,330194,320228,912247,220259,537522,531628,869694,521775,707791,000896,1121,038,8771,103,361
Fixed Assets7572102198296161196238341719782764763
CWIP0124710512919928833653223953
Investments27275282,2303,1455,4934,6044,4043,4993,7745,97310,97113,219
Other Assets169,229194,220228,280244,745255,990516,749623,871689,590771,530786,454889,3341,027,1021,089,326
Total Assets169,330194,320228,912247,220259,537522,531628,869694,521775,707791,000896,1121,038,8771,103,361

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-25,102-22,473-21,455-13,2981,795-57,148-80,252-42,148-59,1434,904-74,717-97,820
Cash from Investing Activity +229-491-1,973-6671,409-13,463-731,741-547-1,694-3,409
Cash from Financing Activity +27,94717,67126,91610,3831,95052,01893,61643,39960,424-8,37175,537101,261
Net Cash Flow2,868-4,7934,970-4,8883,079-3,720-981,1793,023-4,014-87432

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow192.00589.00-186.00-198.00-197.00-435.00-538.00-589.00-652.00-652.00-747.00-888.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %20%21%20%18%6%17%23%15%21%21%20%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters55.99%55.99%55.99%55.99%55.99%55.99%55.99%55.99%55.99%55.99%55.99%55.99%
FIIs16.71%16.76%16.21%16.82%16.85%16.49%17.49%16.85%17.85%17.19%17.93%17.74%
DIIs13.58%13.58%12.74%17.22%17.87%18.63%18.10%17.86%17.47%18.21%17.04%17.43%
Public13.72%13.66%15.05%9.95%9.26%8.89%8.42%9.29%8.66%8.58%9.04%8.83%
No. of Shareholders3,83,0464,17,3374,45,8344,60,8934,19,1224,29,3974,32,0845,33,3755,97,3157,07,57910,04,15210,34,391

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan49,375,1612.421653.5730,500,1122024-11-2361.89%
HDFC Mid-Cap Opportunities Fund - Regular Plan37,237,0342.391247.0730,500,1122024-11-2322.09%
Nippon India Growth Fund30,500,1124.781021.4530,500,1122024-11-230%
HDFC Top 100 Fund - Regular Plan23,253,1802.81778.7530,500,1122024-11-23-23.76%
Sundaram Mid Cap Fund12,284,8974.43411.4230,500,1122024-11-23-59.72%
Sundaram Mid Cap Fund - Institutional Plan12,284,8974.43411.4230,500,1122024-11-23-59.72%
DSP Flexi Cap Fund10,289,2283.64344.5930,500,1122024-11-23-66.26%
Mirae Asset Large & Midcap Fund10,261,5281.13343.6630,500,1122024-11-23-66.36%
DSP ELSS Tax Saver Fund10,242,1362.72343.0130,500,1122024-11-23-66.42%
Mirae Asset Midcap Fund9,495,6522.48318.0130,500,1122024-11-23-68.87%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)59.8860.1953.0844.5026.98
Diluted EPS (Rs.)59.8860.1953.0844.5026.98
Cash EPS (Rs.)80.3480.4271.3159.6035.91
Book Value[Excl.RevalReserv]/Share (Rs.)406.92424.16364.67309.80250.62
Book Value[Incl.RevalReserv]/Share (Rs.)406.92424.16364.67309.80250.62
Revenue From Operations / Share (Rs.)276.04293.81288.86271.42235.56
PBDIT / Share (Rs.)277.58278.64258.13244.66208.10
PBIT / Share (Rs.)277.42278.45258.00244.57208.01
PBT / Share (Rs.)101.78100.3688.6575.3253.30
Net Profit / Share (Rs.)80.1880.2271.1759.5135.82
NP After MI And SOA / Share (Rs.)59.8860.1953.0844.5026.98
PBDIT Margin (%)100.5594.8389.3690.1488.34
PBIT Margin (%)100.4994.7789.3190.1088.30
PBT Margin (%)36.8734.1530.6827.7422.62
Net Profit Margin (%)29.0427.3024.6321.9215.20
NP After MI And SOA Margin (%)21.6920.4818.3716.3911.45
Return on Networth / Equity (%)19.5318.8819.5519.3314.41
Return on Capital Employeed (%)67.4465.0912.0911.1510.50
Return On Assets (%)1.901.771.771.511.02
Long Term Debt / Equity (X)0.000.006.508.179.23
Total Debt / Equity (X)8.528.939.2110.8612.08
Asset Turnover Ratio (%)0.090.060.060.060.06
Current Ratio (X)1.141.133.433.904.00
Quick Ratio (X)1.141.133.433.904.00
Dividend Payout Ratio (NP) (%)24.3816.6124.0117.9735.21
Dividend Payout Ratio (CP) (%)24.3116.5623.9517.9335.09
Earning Retention Ratio (%)75.6283.3975.9982.0364.79
Cash Earning Retention Ratio (%)75.6983.4476.0582.0764.91
Interest Coverage Ratio (X)1.581.561.521.451.35
Interest Coverage Ratio (Post Tax) (X)1.461.451.421.351.23
Enterprise Value (Cr.)1020484.17814942.50708078.39702506.88633468.96
EV / Net Operating Revenue (X)11.2010.519.289.8010.19
EV / EBITDA (X)11.1411.0810.3910.8811.53
MarketCap / Net Operating Revenue (X)1.410.510.380.410.39
Retention Ratios (%)75.6183.3875.9882.0264.78
Price / BV (X)1.270.470.410.490.49
Price / Net Operating Revenue (X)1.410.510.380.410.39
EarningsYield0.150.390.470.390.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Power Finance Corporation Ltd (PFC) as of November 24, 2024 is: 541.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Power Finance Corporation Ltd (PFC) is Undervalued by 13.36% compared to the current share price 478.00

Intrinsic Value of Power Finance Corporation Ltd (PFC) as of November 24, 2024 is: 609.76

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Power Finance Corporation Ltd (PFC) is Undervalued by 27.56% compared to the current share price 478.00

Last 5 Year EPS CAGR: 12.53%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Power Finance Corporation Ltd (PFC):
    1. Net Profit Margin: 29.04%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 67.44% (Industry Average ROCE: 9.95%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.53% (Industry Average ROE: 11.41%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.46
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.14
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 7.43 (Industry average Stock P/E: 36.16)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 8.52
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Power Finance Corporation Ltd. is a Public Limited Listed company incorporated on 16/07/1986 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L65910DL1986GOI024862 and registration number is 024862. Currently Company is involved in the business activities of Other credit granting. Company’s Total Operating Revenue is Rs. 38545.40 Cr. and Equity Capital is Rs. 2640.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Term Lending Institutions'Urjanidhi', 1, Barakhamba Lane, New Delhi Delhi 110001investorsgrievance@pfcindia.com
http://www.pfcindia.com
Management
NamePosition Held
Mrs. Parminder ChopraChairman & Managing Director
Mr. Rajiv Ranjan JhaDirector - Projects
Mr. Manoj SharmaDirector - Commercial
Mr. Sandeep KumarDirector - Finance
Mr. Prasanna TantriIndependent Director
Mrs. Usha Sajeev NairIndependent Director
Mr. Bhaskar BhattacharyaIndependent Director
Mr. Shashank MisraGovernment Nominee Director

FAQ

What is the latest intrinsic value of Power Finance Corporation Ltd (PFC)?

The latest intrinsic value of Power Finance Corporation Ltd (PFC) as on 24 November 2024 is ₹541.86, which is 13.36% higher than the current market price of ₹478.00.

What is the Market Cap of Power Finance Corporation Ltd (PFC)?

The Market Cap of Power Finance Corporation Ltd (PFC) is 1,57,589 Cr..

What is the current Stock Price of Power Finance Corporation Ltd (PFC) as on 24 November 2024?

The current stock price of Power Finance Corporation Ltd (PFC) as on 24 November 2024 is 478.

What is the High / Low of Power Finance Corporation Ltd (PFC) stocks in FY 2024?

In FY 2024, the High / Low of Power Finance Corporation Ltd (PFC) stocks is 580/309.

What is the Stock P/E of Power Finance Corporation Ltd (PFC)?

The Stock P/E of Power Finance Corporation Ltd (PFC) is 7.43.

What is the Book Value of Power Finance Corporation Ltd (PFC)?

The Book Value of Power Finance Corporation Ltd (PFC) is 333.

What is the Dividend Yield of Power Finance Corporation Ltd (PFC)?

The Dividend Yield of Power Finance Corporation Ltd (PFC) is 2.82 %.

What is the ROCE of Power Finance Corporation Ltd (PFC)?

The ROCE of Power Finance Corporation Ltd (PFC) is 9.85 %.

What is the ROE of Power Finance Corporation Ltd (PFC)?

The ROE of Power Finance Corporation Ltd (PFC) is 21.3 %.

What is the Face Value of Power Finance Corporation Ltd (PFC)?

The Face Value of Power Finance Corporation Ltd (PFC) is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Power Finance Corporation Ltd (PFC). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE