Power Finance Corporation Ltd.

SECTOR: Finance Term Lending

80.8
₹ -0.95 (-1.16%)
Today's High: 83.2 Today's Low : 80.45
52 Week High: 138.80 52 Week Low : 74.20
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationAttractive
The stock is considerably attractive based on intrinsic value.
EfficiencyPoor
The company seems highly inefficient in case of asset management.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

 Company Essentials

Market Cap

21331.85777664 Cr.

P/E

3.37

P/B

0.45

Face Value

₹10

Div. Yield

0%

Book Value (TTM)

178.4993

Advances

303210.36 Cr.

Operating Revenue

28842 Cr.

Net Profit

6953 Cr.

Promoter Holding

55.99%

EPS (TTM)

24.0057

Sales Growth

11.03 %

ROE

17.33 %

ROCE

9.61 %

Profit Growth

58.50 %

No. of Shares

264.0081408 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Income Growth

1 Year11.03%
3 Year1.64%
5 Year6.02%

 Profit Growth

1 Year58.49%
3 Year4.39%
5 Year5.12%

 ROE

1 Year17.33%
3 Year11.72%
5 Year14.63%

 ROCE

1 Year9.61%
3 Year9.22%
5 Year10.11%

 ROA%

2.26

 PEG Ratio

0.06

  PAT Margin (%)

24.11

 EPS Growth(%)

58.5

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 55.99 0
Dec 2019 55.99 0
Sep 2019 56.16 0
Jun 2019 59.05 0
Mar 2019 59.05 0
* Figures given above are % of equity capital

 Strengths

  • PAT margin has surged by 7.22%.
  • The company is trading at 0.75 times the book value
  • The company has delivered substantial profit growth of 42.7471876850207% over past 3 years.
  • Promoters shareholding is 55.99%.

 Limitations

  • The company has delivered poor Operating Income growth of 1.64404108188274% over past 3 years.

 Quarterly Result (All Figures are in Crores.)

Particulars Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019
Operating Revenue 7380.24 7701.12 7580.62 8022.54 8210.66
Other Income 1.6 1.52 4.68 1.75 0.96
Interest Expended 4790.07 4979.93 5366.49 5439.13 5495.49
Operating Expenses -182.7 -195.22 276.46 854.49 318.22
Total Provisions 0 0 0 0 0
Depreciation 1.65 1.93 1.72 2.02 2.46
Profit Before Tax 2772.82 2916 1940.63 1728.65 2395.45
Tax 688.45 798.44 557.87 571.39 715.33
Net Profit 2084.37 2117.56 1382.76 1157.26 1680.12

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Operating Income 24899 27465 26908 25976 28842
Other Income 88 102 158 18 889
Interest 15444 16474 16460 16956 18982
Adjusted EPS 23 23 8 17 26
Total Provisions 1037 1891 5315 2930 629
PBT & Exceptionals 8378 9061 5110 5845 9816
Exceptional Items 0 0 0 0 0
Profit Before Tax 8378 9061 5110 5845 9816
Operating Expenses 128 141 181 263 304
Profit After Tax 5959 6113 2126 4387 6953

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 1320.04 1320.04 2640.08 2640.08 2640.08
Total Reserves 30899.17 34445.99 33830.13 34316.07 40647.91
Borrowings 164973.46 172549.7 174841.36 232989.87 285053.48
Other N/C liabilities 1486.67 2080.09 9055.92 -4547.26 -4060.73
Current liabilities 29985.07 36240.95 38093.96 9962.43 16514.22
Total Liabilities 228664.41 246636.77 258461.45 275361.19 340794.96
Assets
Loans 197842.91 200036.08 200333.01 266011.38 303210.36
Net Block 65.79 63.91 62.57 26.97 28.33
Capital WIP 0 0 0 0 0
Investments 347.28 2266.73 2265.6 2520.04 16586.2
Other Loans 209.39 296.11 540.14 508.12 628.59
Other N/C Assets 15.33 19.03 5028.35 235.48 242.09
Current Assets 30183.71 43954.91 50231.78 6059.2 20099.39
Total Assets 228664.41 246636.77 258461.45 275361.19 340794.96
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Company Presentations

 Power Finance Corp Stock Price Analysis and Quick Research Report

Is Power Finance Corp an attractive stock to invest in?

 

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

To understand the functions of the Power Finance Corp better, you must go through the following points:

Key Financials –

  • Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 24.11 Cr and the compounded growth of profit in the past 3 years is 42.7471876850207 %. The PAT margin of Power Finance Corp is 24.1069273975452 %.

  • EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Power Finance Corp , the EPS grew by 58.5 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a average ROE track record. The ROE of Power Finance Corp is at 17.3294149579022 % for the latest year.

  • P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Power Finance Corp is worth at the current levels at Rs 79.1. The stock is trading at a current P/E ratio of 4.67 and the average historical P/E for the last 5 years was 7.17.

  • P/B ratio can be one of the best metrics to value such companies. Currently, Power Finance Corp is trading at a P/B of 0.750161511310643 . The average historical P/B for the last 5 years was 0.834. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

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