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

Revenues for PFC are expected to drop compared to the previous year, which could be a cause for concern for investors. A decline in earnings may negatively impact the company's profitability, leading cautious investors to reconsider their positions, as it often signals challenges in overall financial health.

Financial Ratios:

currentRatio 287.366000
forwardPE 6.659241
debtToEquity 586.017000
earningsGrowth 0.108000
revenueGrowth -0.154000
grossMargins 0.992860
operatingMargins 0.933250
trailingEps 78.500000
forwardEps 65.097510

PFC's current ratio being 287.366 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
Power Finance Corporation Limited's high debt-to-equity ratio indicates a high level of leverage, meaning the company relies significantly on debt for financing. This can increase financial risk, particularly in times of economic instability or reduced profitability.
PFC's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
Power Finance Corporation Limited's positive gross and operating margins indicate strong financial performance. These margins show that the company is profitable and efficient in its operations, with effective cost control contributing to its overall financial success.
PFC's forward EPS being lower than its trailing EPS indicates that the company's earnings are projected to decrease. This suggests that PFC may struggle to maintain profitability at previous levels, potentially affecting its financial outlook.

Price projections:

Price projections for PFC
Price projections for PFC

Price projections for Power Finance Corporation Limited have consistently been revised upward, suggesting that analysts are increasingly optimistic about the company's performance. This trend reflects a positive outlook for Power Finance Corporation Limited's future.

Recommendation changes over time:

Recommendations trend for PFC
Recommendations trend for PFC


PFC has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see PFC as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.