CLSA has reiterated its ‘Outperform’ rating on Power Finance Corporation (PFC), setting a target price of ₹610 per share, indicating a potential 35% upside from the current market price (CMP) of ₹450.80. The brokerage notes that PFC’s loan growth stands at 10% year-on-year. The company’s board has decided against extending a loan to the Shapoorji Pallonji Group. Additionally, PFC has resumed sanctions in the conventional generation segment, which CLSA views as a key positive. The stock’s adjusted price-to-book ratio of 1.1x for FY26 is considered inexpensive relative to its 18% return on equity profile.
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