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Power Finance Corporation Ltd

NSE: PFC BSE: 532810

413.80

(-1.62%)

Fri, 06 Mar 2026, 06:39 am

Power Finance Corporation Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.8x coverage).
  • Power Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Power Finance's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

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Pros

  • Power Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Power Finance is profitable, therefore cash runway is not a concern.
  • Power Finance is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1.1x debt.
  • Power Finance's cash and other short term assets cover its long term commitments.
  • Low level of unsold assets.
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • The level of debt compared to net worth has increased over the past 5 years (580.3% vs 813.8% today).
  • Power Finance's level of debt (813.8%) compared to net worth is high (greater than 40%).

management

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Pros

  • The tenure for the Power Finance management team is about average.
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Cons

  • The average tenure for the Power Finance board of directors is less than 3 years, this suggests a new board.

misc

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Pros

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    Cons

    • Power Finance is not covered by any analysts.
    • Power Finance has significant price volatility in the past 3 months.

    past

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    Pros

    • Power Finance's year on year earnings growth rate has been positive over the past 5 years.
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    Cons

    • Power Finance's 1-year earnings growth is less than its 5-year average (3.6% vs 15.3%)
    • Power Finance used its assets less efficiently than the IN Diversified Financial industry average last year based on Return on Assets.
    • Power Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Power Finance's earnings growth has not exceeded the IN Diversified Financial industry average in the past year (3.6% vs 13.5%).

    value

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    Pros

    • Power Finance's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • Power Finance's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • Power Finance is good value based on assets compared to the IN Diversified Financial industry average.
    • Power Finance is good value based on earnings compared to the IN Diversified Financial industry average.
    • Power Finance is good value based on earnings compared to the India market.
    • PFC outperformed the Diversified Financial industry which returned -37.3% over the past year.
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    Cons

    • PFC underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:PFC is down -1.6% underperforming the Diversified Financial industry which returned 10.8% over the past month.
    • NSEI:PFC is down -1.6% underperforming the market in India which returned 8% over the past month.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800