This Maharatna Power Sector Stock Hit New 52-Week High

Power Finance Corporation Limited stock touched a new 52-week high of Rs 202.95 on the BSE on June 12, 2023 from its previous closing of Rs 198.75. The stock has been on a strong uptrend in recent months, rising by over 50% from its lows in March 2023. The rally in PFC stock was driven by the recent press release.

As per the press release, 2 Special Purpose Vehicles (SPVs) for the development of Independent Transmission Projects have been incorporated as wholly owned subsidiaries of PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited).

The company has been nominated as the Bid Process Coordinator (BPC) for the selection of developers through tariff-based competitive bidding for the Independent Transmission Projects (ITPs) by the Ministry of Power, Government of India.

The two projects are:
1. Bikaner Iii Neemrana Transmission Limited for development of "Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-1: Bikaner Complex) Part-A" on 08th June 2023.

2. Neemrana Ii Bareilly Transmission Limited for development of "Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-1: Bikaner Complex) Part-D' on 08th June 2023.

Additionally, Power finance corporation reported financial results for the March 2023 quarter, with a net profit of Rs 3,492 crore, rising by 43% year-on-year. The company's asset quality also improved, with the gross non-performing assets (NPAs) ratio falling to 7.4% from 8.5% in the previous quarter.

The overall market sentiment has been positive in recent months, which has also helped to boost the company's stock price. The Indian power sector is expected to see strong growth in the coming years, driven by government initiatives such as the UDAY scheme and the National Electricity Plan. This is expected to benefit power, which is one of the leading lenders to the power sector.

About Power Finance Corporation

Power Finance Corporation Ltd is a central public sector undertaking under the ownership of the Ministry of Power, Government of India. Established in 1986, it is the financial backbone of the Indian power sector. It provides financial assistance to power projects across India including generation, transmission, distribution, and RM&U projects. It was conferred with a Mahartna status in 2021 and has a market capitalisation of Rs 53,369.26 crores.

Share price movement

In the last one year, the share price of the company has surged by 92.8%, and in the last three years, it has 141.81%. The stock price closed at Rs 202.15, it was up 1.71% on an intraday basis.

Disclaimer

Please note that the above-mentioned data that the stock price has grown should be treated as purely informational and not an advisory to investing. These should not be construed as recommendations to either hold, buy, or sell in the stocks listed above. We have not done any detailed fundamental analysis, hence caution should be exercised while investing. Neither Greynium Information Technologies nor the author would be held responsible for the losses incurred due to any decision taken based on this write-up.