2nd Interim Dividend of Rs.3.5 By Maharatna CPSE: 25.11 Record Date, Payable By 08.12; BUY PSU Stock?

Power Finance Corporation (PFC) Ltd., a schedule-A Maharatna CPSE and one of the nation's top non-banking financial corporations, was established on July 16th, 1986. The Ministry of Power has administrative authority over PFC. In October 2021, PFC received the designation of "Maharatna CPSE," and on July 28, 2010, the RBI designated it as an infrastructure finance company. PFC has regional offices in Chennai and Mumbai in addition to its registered office in New Delhi.

Power Finance Corporation Dividend

The Board of Directors considered and approved the "Declaration of 2nd interim dividend @ Rs.3.50/-(Rupees Three and fifty paisa only) per equity share (i.e. @ 35%) (subject to deduction of TDS) on the face value of the paid-up equity shares of Rs 10/- each for the FY 2024-25. Further, it is to inform that 25.11.2024 (Monday) shall be reckoned as the Record Date' for the purpose of ascertaining the eligibility of shareholders for payment of 2nd Interim Dividend for the FY 2024-25. The date of payment /dispatch of the aforesaid 2nd interim dividend shall be on or before 08.12.2024," said the company in a stock exchange filing.

Power Finance Corporation Financials

For the second quarter ending September 30, 2024, state-owned Power Finance Corporation Ltd. (PFC) announced an 8.9% year-on-year (YoY) rise in net profit of Rs 7,215 crore. According to a regulatory filing, Power Finance Corporation reported a net profit of Rs 6,628.2 crore for the corresponding quarter of the previous fiscal year. Compared to Rs 22,374.6 crore during the same period of the previous fiscal year, the company's revenue rose 15% to Rs 25,721.8 crore in Q2FY25. In the second quarter of the current fiscal year, EBITDA increased 10.5% to Rs 25,354.2 crore from Rs 22,942.4 crore in Q2FY24.

PFC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "PFC is currently trading at Rs 467 and is showing strong potential for a breakout from its recent consolidation phase, forming a classic rounding bottom pattern on the daily chart. The stock is also finding support at the 50-day EMA on the weekly chart, suggesting a solid base at current levels. Increased trading volumes accompanying this setup indicate a bullish build-up, pointing to growing buying interest as it approaches a breakout level."

"A close above Rs 490 could confirm the breakout, potentially setting the stage for a trend reversal. If this level is breached, we can expect upside targets of Rs 520 and Rs 540 in the short term. Immediate support zones are present at Rs 450 and Rs 425, which could serve as attractive entry points on any pullbacks. The RSI stands at 51.30, supporting a continuation of the uptrend with further room to move higher," the analyst stated.

"Additionally, PFC is trading above its 20-day EMA (short-term) and 200-day EMA (long-term), further reinforcing the bullish outlook. Given the favorable technical landscape, a buy at Rs 467 appears promising, with a prudent stop-loss at Rs 430 to limit downside risk. This setup presents a solid opportunity for traders looking to capitalize on PFC's potential breakout and ensuing momentum," Mandar Bhojane further commented.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.