NSE Symbol: PFC | BSE Code: 532810
PFC Share Price Performance in 2018
Stock Trends in 2018::
On January 2, 2018, the opening Power Finance Corporation share price was Rs.124.95 on the National Stock Exchange. Over the course of the month, the rate dropped slightly to enter in the Rs.110 range. The closing price at the month end was Rs.116.80. A similar decline was reported in the month of February as well. The scrip lost a little 5% in four weeks, with the closing PFC Ltd share price on 28th February being Rs.105.
In the March beginning, the Power Finance Corporation share price came down by 15%. Things didn’t turn around in this month as the scrip continued to drop points. An interim 18% PFC Ltd dividend was announced in the month, but that didn’t result in boosting the confidence of investors. The PFC Ltd stocks dipped down to be traded at Rs.88 for the entire month.
Things remained relatively the same in April as well. The prices changed above Rs.80 range, but they didn’t make any substantial gains to recover from the previous losses. It wasn’t until May when the prices went down again, and this time, it reached a 52-week down of Rs.71.05. The closing PFC Ltd share price on May 31, 2018, was Rs.80.55.
Listings of PFC Share Price on NSE, BSE, and other Indices:
The PFC Limited shares are available for purchase and trading on major stock exchanges of the country - the National Stock Exchange of India Limited and the BSE, Mumbai. The respective codes for the indices are as follows:
NSE Code: PFC
BSE Code: 532810
Sector: Finance - Term Lending Institutions
The company is also listed on the following stock indices:
NIFTY Next 50
S&P BSE AllCap
S&P BSE 100
S&P BSE 200
S&P BSE 500
S&P BSE LargeMidCap
Information about the company:
Power Finance Corporation Limited is a prominent NBFC which specializes in the power sector. It is entirely owned by the GoI and is under the administrative control of the Ministry of Power. The PFC Limited conferred the status of Navratna Company in June 2007.
It provides financial aid and consultancy services to the power projects across the country, covering generation, transmission, and distribution aspects. It also offers financial support for infrastructure projects which are linked to the power sector indirectly. PFC Ltd has been deemed as a nodal agency for the execution of Integrated Power Development Scheme, Ultra Mega Power Projects, and the Independent Transmission Projects. Currently, on NSE from last five days, the PFC share price is Rs 81.80.
PFC Limited was founded on July 16, 1986, under the Companies Act as a Public Ltd. The company started its lending operations in the year 1988 and eventually made its plan to identify areas that require the financial assistance. In 1996, the company began funding to private power projects and just after two years, PFC Ltd was registered as a non-banking finance company. In 1999, the company introduced its consultancy services, which was available to state-owned and private power companies. The Power Finance Corporation signed MoU with the public sector banks, in addition to listing its equity shares on the stock markets in 1999.
Mr. Rajeev Sharma - Chairman and MD
Mr. Rajeev Sharma, IAS, has been a part of PFC Ltd since October 2016. Before associating with the company as the MD in PFC Ltd, Mr. Sharma worked as the MD of Rural Electrification Corporation Limited for five years tenure. He has been working in the power sector for more than 26 years now and has held numerous essential positions. Some of the critical areas include the Director of Projects at PFC Limited from March 2009 to November 2011. He has also worked as the Chairman and Director of Energy Efficiency Services Limited. He has a B.Tech in electrical engineering, followed by an MBA from Delhi University and a Masters degree in electrical engineering, IIT, Roorkee.
Mr. Chinmoy Gangopadhyay - Director, Projects
Mr. Gangopadhyay was appointed as the Director of Projects of PFC Limited on January 2017. He has been the part of the power sector for more than 35 years and has worked with several reputed organizations like National Thermal Power Corporation Limited, PFC, and PFC Consulting Limited (PFCCL). He has been associated with the PFC group for more than 25 years, and in his impressive tenure, he has exerted on several vital roles. In addition to this, he has also worked as the Director of JIL and Odisha Infrapower Limited.
Mr. N.B Gupta - Director, Finance
Mr. N.B Gupta was appointed the Director of Finance in PFC Limited on August 2017. He has been working in the power sector for more than 30 years. He primarily specialized in the fields of fundraising, internal audit, international finance, and accounts. Before his appointment as Director, Mr. Gupta exerted as the Executive Director of Finance in PFC Limited. He was associated with the company in 2005 as a Chartered Account.
Market Capitalisation of PFC Ltd:
The market capitalization of Power Finance Corporation, as of June 21, 2018, is a little more than Rs.21,500 crore.
Company’s Wealth Performance:
For the Q4 of the financial year 2017-18, standalone revenue from operations of the company was recorded to be at Rs.6,162.38 crore. It is a marginal decrease over the income recorded for the December quarter. However, as compared to the corresponding quarter of the last year, this figure has increased by over 5%.
The consolidated revenue from operations for the financial year ended on March 31, 2018, was stated to be Rs.25,870 crore in comparison to Rs.26,330 crore for the last fiscal year.
Despite the marginal reduction in revenue, PFC still managed to generate a healthy profit. It came on account of the decrease in total expenses for the period. The profit of the March quarter was revealed as Rs.935.60 crore which is a significant improvement over the loss of Rs.3,400 crore which was the case in the corresponding quarter of the previous year.
The net PAT for the year was recorded to be Rs.5,844 crore in comparison to the Rs.2,236.10 cr profit reported in the Fiscal Year 2016-17.
The consolidated long-term borrowing of PFC Limited was reported to be of worth Rs.1,92,055 crore - an increase in roughly 10% over the last year. It is worth mentioning that the long-term debt constitutes more than 60% of the overall liabilities and equity.
As of March 31, 2018, the debt-equity ratio was reported to be 5.76, as compared to 5.55 over the last year.
Why invest in PFC Limited?
Power Finance Corporation Ltd is a public-sector undertaking owned by the GOI. As an NBFC, it provides financial support to power projects in India. However, many of these projects in the country are facing the insolvency proceedings, which is why they are unable to pay their loans.
To resolve these issues, the RBI has come up with strict norms. PFC Limited need to consider these norms and should make an attempt to reduce the number of bad loans in their books. In the upcoming fiscal year, the company plans to deduct the NPA count by 10%. At the same time, the private sector loans of worth Rs.17,000 crore are at the risk of getting classified as non-performing loans.
Considering the financial performance, the company made a profit in the March quarter after reporting the staggering loss in that particular quarter of the last year. However, the long-term debts have inclined by 10% over the previous year, amounting to Rs.1,92,000 crore. The debt-equity ratio is also considerably high, standing at 5.76 as of March 31, 2018. It indicates that the company has been aggressive in financing its growth with debt.
Even the PFC Ltd stock price has taken a hit with the scrip losing more than 30% since January 2017. However, there may be some rays of hope for the investors as the GOI is working hard to rejuvenate the growth of power sector in India. From a long-term perspective, it may be a good idea to invest in PFC stocks. However, it is strongly advisable to research before investing.