Macquarie has initiated an outperform rating on Power Finance Corporation (PFC), setting a target price of ₹630, which suggests a potential upside of 35% from the current market price (CMP) of ₹467.55. The brokerage views PFC as a cyclical play with attractive valuations and favorable growth prospects.
Macquarie highlights that recent regulatory overhauls in response to power shortages have lowered credit risks and boosted growth momentum for power financiers like PFC. Despite the recent rally in PFC’s stock, the brokerage expects a rerating due to asset resolutions, reduced slippages, and an increasing share of renewable energy in its portfolio.
Macquarie also notes that the risk-reward profile for PFC is currently more favorable compared to REC, making it an attractive investment in the sector.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
