Share of Power Finance Corporation Limited (PFC) is currently trading at around Rs.406/-Existing as well as Prospective Investors are asking for PFC Share Price Target 2025 as well as targets for 2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you about the PFC Share Price Target 2025 as well as targets for 2030, 2035 and 2040.
Discussion & Analysis of Business & Financial performance with future Business Prospects of Power Finance Corporation Ltd:
Power Finance Corporation Ltd (PFC), a leading state-owned non-banking financial company (NBFC) in India, has demonstrated robust financial performance in FY2023-24 and is strategically positioned for continued growth, particularly in the renewable energy sector.
Current Business Performance
In FY2023-24, PFC achieved a record standalone net profit of ₹14,367 crore, marking a 24% increase from ₹11,605 crore in the previous fiscal year. The consolidated net profit for the fourth quarter stood at ₹7,556 crore, reflecting a 23% year-on-year growth, primarily driven by the expansion of its loan portfolio .
The company’s loan asset book grew by 14%, reaching ₹4.81 lakh crore as of March 31, 2024. Notably, PFC’s renewable energy loan portfolio experienced a 25% year-on-year growth, surpassing ₹60,000 crore, thereby reinforcing its position as India’s largest renewable energy lender
PFC maintained strong asset quality, with its net non-performing asset (NPA) ratio declining to 0.85%, the lowest in six years, and gross NPA reducing to 3.34% . The company also upheld a healthy capital adequacy ratio of 25.41%, with Tier 1 capital at 23.18%, well above regulatory requirements.
In recognition of its strong performance, PFC declared a total dividend of ₹13.50 per share for FY2023-24, including a final dividend of ₹2.50 per share .
Future Business Prospects
Looking ahead, PFC plans to borrow between ₹1 trillion to ₹1.2 trillion in FY2024-25 to support its lending activities, with an expected loan book growth of 12% to 15% . The company is poised to benefit from India’s increasing demand for power infrastructure financing, particularly in the renewable energy sector, aligning with the nation’s clean energy objectives.
Analysts remain optimistic about PFC’s growth trajectory, citing its stable margins, healthy asset quality, and proactive resolution of stressed assets. For instance, the company is on track for full principal recovery from the KSK Mahanadi project, which is expected to result in a write-back of provisions .
However, potential risks include increased exposure to private infrastructure projects and the possibility of financing lower-quality power projects without long-term power purchase agreements. Despite these challenges, PFC’s strong financial foundation and strategic focus on sustainable energy financing position it well for future growth.
In summary, PFC’s impressive financial performance in FY2023-24, coupled with its strategic initiatives in the renewable energy sector and prudent risk management, underscore its pivotal role in India’s evolving energy landscape.
Share Price Targets:
PFC Share Price Target 2025
Based on the above discussion and analysis, the share price of Power Finance Corporation Ltd is likely to touch the level of around Rs.450-500 in 2025
PFC Share Price Target 2030
Based on the above discussion and analysis, the share price of Power Finance Corporation Ltd is likely to touch the level of around Rs.1000-1100 in 2030
PFC Share Price Target 2035
Based on the above discussion and analysis, the share price of Power Finance Corporation Ltd is likely to touch the level of around Rs.2200-2400 in 2035
PFC Share Price Target 2040
Based on the above discussion and analysis, the share price of Power Finance Corporation Ltd is likely to touch the level of around Rs.5000-5500 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
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