Power Finance Corporation (PFC) shares jumped over 2% after Macquarie reaffirmed its ‘Outperform’ rating, citing strong fundamentals and an intact structural growth story. As of 11:19 AM, the shares were trading 2.15% higher at Rs 404.25.
The recent dip in PSU stocks, according to the brokerage, is unjustified, and concerns over a potential earnings slowdown are overblown.
Despite fears of a decline in loan growth, rising competition, and lower power demand, Macquarie remains bullish on PFC. The firm highlights that PFC’s strong loan portfolio ensures lower credit risk, while its robust earnings continue to support double-digit return on equity (ROE). Additionally, PSU financial stocks, including PFC, trade at attractive valuations despite their strong balance sheets.
Macquarie has set a price target of ₹680 for PFC, reinforcing its confidence in the stock’s growth potential. As one of the best plays in the power finance sector, PFC stands out with a low-risk, high-ROE profile, making it an appealing option for long-term investors.
PFC shares opened at ₹405.00, reaching a high of ₹408.80 and a low of ₹400.10. The stock remains volatile, trading well below its 52-week high of ₹580.00 but above the 52-week low of ₹351.70.
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