PFC Shares Zoom 4% As Brokerages Remain Bullish Over Strong Guidance
Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Congratulations!
You have successfully subscribed.

Power Finance Corporation’s shares opened 4% higher on Wednesday morning after the company recorded strong results in the June quarter which prompted brokerages to keep their bullish stance.

What Happened: PFC recorded a 23% year-on-year rise in net profit to ₹3,717 crore. The company's net interest income, a key financial metric was up 23% to ₹4,328 crore from the previous year while revenue from operations has increased 17% to ₹11,910 crore. 

The lender in the power sector also declared an interim dividend of ₹3.25 per share. The record date for the payment is August 30. 

Brokerage Views: Bernstein maintained an "outperform" call with a target price of ₹620. According to the brokerage firm, Q1FY25 was not a great quarter, but the guidance on growth was retained. The research firm elaborated that Q1 was disappointing due to a sequential decline in the loan book. The brokerage is confident in loan book growth coming in and sees the quarter as a temporary blip. 

See Also: Mazdock’s Share Price Band Revised From 10% By Exchanges

CLSA also maintained an "outperform" call with a target price of ₹610. Q1 net profit increase was 5% ahead of estimates due to forex gains. The brokerage said the loan growth was slow at a 10% year-on-year increase. "The management indicated it is undergoing transformation projects which should settle down soon", the brokerage said. The company has not seen new non-performing asset formation nor new resolutions in Q1, the brokerage added.

Philip Capital also maintained a “buy” call with a target price of ₹590. The research firm expects the company to deliver earnings growth of 16.4% and 6.8% in FY25 and FY26 which will translate into a return on equity of 19.6% and 18.1% in the fiscal respectively.

Price Action: Shares of PFC opened 4.31% higher than previous day’s close at ₹494.50 on Wednesday morning.

Read Next: Garden Reach Shipbuilders’ Share Price Band Revised Upwards By Exchanges

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
EquitiesLong IdeasNewsPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasPower Finance Corporation