BUY Maharatna CPSE Stock That Fell By 19% YTD? Turned Ex-Dividend For Rs 3.65 Per Share; Next Target?

Power Finance Corporation (PFC), is a Maharatna CPSE that is engaged in providing financial services to the power sector of India. This NBFC has turned ex-dividend for its interim dividend of Rs 3.65 per share for FY26. It needs to be noted that PFC stock has been bearish throughout 2025 so far. Is a turnaround expected ahead? What should be the buying target price for PFC?

Power Finance Corporation Share Price:

After market hours on November 26, PFC stock price closed at Rs 362.45 apiece on BSE, up by 0.32% with market cap of Rs 1,19,612.19 crore.

At the latest price, PFC is near its 52-week low of Rs 357.25 apiece, and down by 31% from its 52-week high of Rs 523.65 apiece. Notably, PFC shares have dropped by 19.2% year-to-date.

At present, PFC's price-to-equity ratio is at 3.32x and return on equity is at 41.98%.

Power Finance Corporation Dividend:

PFC turned ex-dividend on November 26 for its interim dividend of Rs 3.65 per share for FY26. This is also the record date to determine eligible shareholders for the dividend.

The latest dividend payout will be the second dividend for the current fiscal. Earlier, PFC delivered an interim dividend for FY26.

As per Trendlyne data, the company has distributed up to 45 dividends since September 2007. Notably, PFC also has one of the highest dividend yield of 4.53% in the PSU basket.

BUY PFC Share Price?

The latest to recommend BUY on PFC is ICICI Securities. Analysts here said, "Power Finance Corporation (PFC) reported PAT at Rs 44.6 billion, up 2% YoY and flat QoQ, aided by higher dividend income and contained opex in Q2FY26. Loan book was up 2% QoQ and YTD book is up 3%; it maintains loan book growth guidance of 10-11% in FY26. Unlike its subsidiary, it has not received any prepayment from Kaleshwaram project and total exposure stands at Rs 260 billion (~4.5% of loans).

Further, the analysts explained that share of private sector in overall book stands at 24% versus. 20% YoY. Private sector book's three-year CAGR is ~31% vs. ~14% CAGR for overall book. Hence, given relatively faster growth in private sector book and new project financing norms, we model relatively higher credit cost of 15-
30bps in FY26/27E vs. ~10bps in FY25. In spite of that, we expect PFC to report RoE of 16-18% for FY26/27E.

Thereby, analysts added, "We maintain BUY with SoTP-based revised TP of INR 480 (earlier: INR 510) as we roll over to FY27E, and thereby, value PFC standalone at 1.1x FY27E BV (earlier: 1.3x FY26E BV) and add REC stake value (adjusted for REC stake purchase) after applying a 25% holdco discount."

About Power Finance Corporation Ltd:

Incorporated on July 16th, 1986, Power Finance Corporation Ltd. is a Schedule-A Maharatna CPSE, and is a leading Non-Banking Financial Corporation in the Country. PFC's registered office is located at New Delhi and regional offices are located at Mumbai and Chennai.

PFC plays a crucial role in the rise of India as a global player. Increasingly, a country's development is gauged by measuring its energy usage. With a large fraction of our nation still, unfortunately, without any access to electricity, PFC will become an increasingly important factor in the years to come.

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