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

PFC's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 36.447000
forwardPE 6.027487
debtToEquity 603.342000
earningsGrowth 0.083000
revenueGrowth 0.120000
grossMargins 0.993890
operatingMargins 0.949020
trailingEps 75.030000
forwardEps 59.502410

A current ratio of 36.447 for Power Finance Corporation Limited implies that the company has ample liquidity to meet its short-term debts. Power Finance Corporation Limited's cash reserves and current assets should easily cover these obligations, highlighting its financial stability and ability to manage short-term liabilities.
PFC's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
PFC's positive gross and operating margins suggest that the company is operating profitably. These strong margins indicate effective cost management and revenue generation, contributing to a solid financial foundation.
PFC's lower forward EPS compared to its trailing EPS indicates that the company may be less profitable in the upcoming year. This suggests a potential slowdown in earnings, which could be a sign of weaker financial performance ahead.

Price projections:

Price projections for PFC
Price projections for PFC

PFC's price has consistently hovered around the lower limit of price projections. This pattern suggests that the stock may be underperforming relative to expectations, which could lead to concerns among investors.

Recommendation changes over time:

Recommendations trend for PFC
Recommendations trend for PFC


Analysts have shown a buy bias for Power Finance Corporation Limited, marking it as a favorable investment option. This could inspire investors to see Power Finance Corporation Limited as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.