Investors are rejoicing as Power Finance Corporation (PFC) share prices surge to new highs keeping stock markets in India on their toes. PFC has now become one of the hottest and highest performing stocks of the day. In Tuesday’s intra-day trade, PFC hit an all time high of Rs 157.80 with a mammoth 5 per cent surge. Over the past week, the company’s stock has surged by an impressive 15 per cent and is trading at its highest level since May 2017.
An Overview of Power Finance Corporation
Power Finance Corporation Limited (PFC) is a leading public sector financial institution based in India. It acts as the government’s trusted partner by making accessible and affordable financial solutions to various sectors such as energy, road, renewable and telecom. Its principal business activity is to provide long-term finance to power projects across India. As of now, PFC is a listed entity on the National Stock Exchange (NSE).
Why is the PFC Share Price Surging?
The rise in the price of PFC shares can be attributed to the company’s strong performance in the previous financial year. As per the recent financial report, the company recorded an impressive 7 per cent year-on-year growth in its operating income. The financial results also showed an impressive decrease in the profit margin which rose to 23.6 per cent in FY2020-21 compared to 12.3 per cent a year ago. This performance has instilled investors with confidence in the company and its capacity to deliver on its promises.
Analysis of the PFC Share Price
When it comes to share price analysis, one must look at the factor of book-to-market value (BTMV) ratio. As of now, the PFC share is trading at 0.54 times more than its book value. Another indicator for investors to watch for is the price-to-earnings (P/E) ratio which currently stands at 8.33 for PFC. This ratio is a metric for evaluating a company’s financial health based on its current share price relative to its earnings per share.
Market News and Exchange Related Updates
The Securities and Exchange Board of India recently relaxed the dynamic price band of 10 per cent applicable to securities in derivatives or securities included in indices on which derivative products are available. This relaxation is applicable intra-day in the event of a market trend in either direction (upper/lower) in co-ordination with other Exchanges. This news has further bolstered investor’s confidence in the stock and added fuel to the price surge.
Overall, the PFC share is gaining a strong support from the market due to its impressive growth and strong financials which has resulted in the recent surge in its share price. This surge in the price of PFC shares has provided investors with the opportunity to lock in huge profits if they have been holding the stock for a longer period of time. The latest updates from the stock exchange and market news have further increased investor’s interest in the stock and will drive the PFC share price even further.