PFC Q4 Results Review: Healthy Quarter But Weak Outlook On Loan Growth, Says Motilal Oswal, Maintaining 'Buy'

Power Finance Corporation’s Q4 FY25 PAT grew ~24% YoY to Rs 51.1 billion (~17% beat). FY25 PAT jumped ~20% YoY to Rs 173.5 billion. The earnings beat was primarily driven by the write-back of ~Rs 12 billion in interest income from the resolution of KSK Mahanadi..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Power Finance Corporation Ltd. delivered a healthy quarter, supported by robust operational performance across key metrics. Disbursements remained healthy, fueling steady loan growth. Asset quality improved further, aided by the resolution of stressed assets, while net interest margins remained largely stable on a sequential basis.PFC (standalone) trades at 0.9 times FY27E price/book value and ~5x FY27 P/E, and we believe that the risk-reward is attractive considering decent visibility on loan growth, further stressed asset resolutions, and healthy RoE of 18-19% in FY26-27E.We reiterate our Buy rating with an SoTP (Mar’27E)-based target price of Rs 485 (based on 1.1x target multiple for the PFC standalone business and Rs 193/ share for PFC’s stake in REC after a hold-co discount of 20%). Key risks: weaker loan growth driven by higher prepayments; increase in exposure to power projects without PPAs; compression in spreads and margins due to an aggressive competitive landscape; and a slowdown in the offtake of renewable energy projects, driven by weak power demand..Click on the attachment to read the full report:.Gland Pharma Q4 Results Review: Core Weakness, Cenexi Hurdles Weigh On FY25 — Motilal Oswal Maintains 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PFC Q4 Results Review: Healthy Quarter But Weak Outlook On Loan Growth, Says Motilal Oswal, Maintaining 'Buy'

Motilal Oswal maintains 'Buy' on PFC, but cuts target price

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP