Maharatna CPSE Power Finance Corp Declares 1:4 Bonus Shares, PAT Up 31% In Q1

Power Finance Corporation (PFC), a Schedule-A Maharatna CPSE that was established on July 16th, 1986, is one of the top non-banking financial institutions in the nation. The firm announced positive Q1 earnings and bonus shares for its eligible shareholders in a ratio of 1:4.

"The issue of Bonus shares to the shareholders of the Company in the ratio of 1:4, i.e. one (1 ) bonus equity share of Rs 10/- each fully paid-up for every Four (4) existing equity shares of Rs 10/- each fully paid- up, to the eligible members by capitalizing a sum not exceeding 660,02,03,520/- (Rupees Six hundred sixty crore two lakh three thousand five hundred twenty only) out of the sum standing to the credit of 'Securities Premium Account, subject to the approval of shareholders," said PFC in a stock exchange filing.

The firm announced that its consolidated net profit for the first quarter of the current fiscal year that ended in June (Q1FY24) jumped by 30.6% YoY to Rs 5,982.14 crore from Rs 4,579.53 crore in the same quarter of the previous year. In the quarter that ended in June, the company's total consolidated revenue from operations jumped 13.3% YoY to Rs 20,992.49 crores from Rs 18,532.25 crore in Q1FY23.

In the first quarter, the total income climbed to Rs 21,001.44 crore from Rs 18,544.04 crore in the corresponding period last year. According to the company's report, the operating margin for the quarter ended in June was 35.21% on a consolidated basis, and the net profit margin was 28.48%. According to the company, its consolidated loan asset book was at Rs 8,86,723 crore in the first quarter of FY24, up 17% from the Rs 7,58,074 crore reported in the first quarter of FY23. From 1.57 percent in Q1 FY23 to 1 percent in Q1 FY24, the net NPA has dropped. According to Power Finance Corporation (PFC), the gross NPA dropped by 148 basis points from 5.02 percent in Q1 FY23 to 3.54 percent in Q1 FY24.

Power Finance Corporation Share Price Target

PFC has witnessed a very bullish rally after 15 May 2023 however this stock got bottomed out in Nov 2023 and it was 5dading near 90 in Nov.

Currently, it is trading at nearly 265 and now a pull back is expected in it. In fact, its RSI is also in the overbought zone. Its daily RSI is above 70 and weekly RSI is above 80.

One can accumulate more near 230 a for target expectations from 280 to 570 range. suggested V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Disclaimer

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