PFC CMP 151 SL 143 Target 169
Company Description
PFC is the largest power finance com pany in India. It enjoys a sovereign rating, strong capital adequacy ratio of 18.9 per cent and negligible non-performing assets.
Power Finance Corporation is engaged in power sector financing, and the integrated development of the power and associated sectors. They provide large range of Financial Products and Services like Project Term Loan, Lease Financing, Direct Discounting of Bills, Short Term Loan, and Consultancy Services etc for various Power projects in Generation, Transmission, and Distribution sector as well as for Renovation & Modernization of existing power projects.
The company has loan book of over Rs 1, 04,050 crore with 84 per cent of the loans to generation sector. Higher exposure to low-risk power generation business compared to its peers (REC has 40 per cent exposure) places it better, given the concerns surrounding the power sector.
Technical Comments
Stock is trading above all short term moving averages (5, 20 & 50 DMA) and is also making an inverse head & shoulder. In last 2 days high volume delivery is seen in the stock. The stock is making higher lows and higher highs which can lead to a target of around Rs. 170 levels with a strict SL of Rs. 143.
