Should You Buy PFC Stock in India in 2025?
Is it the right time to buy PFC?
ScorePower Finance Corporation Limited (PFC), trading at approximately ₹413.25 per share with an average daily volume of nearly 7 million shares, stands as one of India’s leading infrastructure financiers. Despite recent weakness reflecting a 22% decline over the past year, the stock remains at the core of the country’s power sector transformation. PFC’s FY2025 financials paint a robust picture: record net profits of ₹30,514 crores, revenue growth of 21% YoY in Q4, and significant improvement in asset quality with gross NPAs down to 1.64%. The company’s final dividend announcement, ongoing expansion into new transmission projects, and plans for strategic overseas funding all highlight management’s proactive stance. Market sentiment, while cautious amid recent volatility, remains constructive as analysts broadly point to PFC’s strong fundamentals, leadership in power sector finance, and government backing as a PSU. With a consensus target price of around ₹537—supported by the outlooks of more than 12 major national and international banks—the current environment may offer a favorable entry point for investors seeking long-term exposure to infrastructure and renewable energy growth in India’s public sector financial space.
- ✅Record net profit of ₹30,514 crores in FY2025 shows strong earnings momentum.
- ✅Consistent dividend yield at 3.8%, reflecting stable income for shareholders.
- ✅Asset quality has significantly improved; gross NPAs reduced by nearly half YoY.
- ✅Dominant market leadership in infrastructure finance for India’s power sector.
- ✅Backed by the Government of India, ensuring strategic stability and support.
- ❌Recent 1-year price decline shows vulnerability to sector and market sentiment shifts.
- ❌Concentration risk due to predominant exposure to the Indian power sector.
Score- ✅Record net profit of ₹30,514 crores in FY2025 shows strong earnings momentum.
- ✅Consistent dividend yield at 3.8%, reflecting stable income for shareholders.
- ✅Asset quality has significantly improved; gross NPAs reduced by nearly half YoY.
- ✅Dominant market leadership in infrastructure finance for India’s power sector.
- ✅Backed by the Government of India, ensuring strategic stability and support.
Is it the right time to buy PFC?
- ✅Record net profit of ₹30,514 crores in FY2025 shows strong earnings momentum.
- ✅Consistent dividend yield at 3.8%, reflecting stable income for shareholders.
- ✅Asset quality has significantly improved; gross NPAs reduced by nearly half YoY.
- ✅Dominant market leadership in infrastructure finance for India’s power sector.
- ✅Backed by the Government of India, ensuring strategic stability and support.
- ❌Recent 1-year price decline shows vulnerability to sector and market sentiment shifts.
- ❌Concentration risk due to predominant exposure to the Indian power sector.
Score- ✅Record net profit of ₹30,514 crores in FY2025 shows strong earnings momentum.
- ✅Consistent dividend yield at 3.8%, reflecting stable income for shareholders.
- ✅Asset quality has significantly improved; gross NPAs reduced by nearly half YoY.
- ✅Dominant market leadership in infrastructure finance for India’s power sector.
- ✅Backed by the Government of India, ensuring strategic stability and support.
- What is PFC?
- PFC Stock Price
- Our Full Analysis of the PFC Stock
- How to buy PFC stock in India?
- Our 7 tips for buying PFC stock
- The latest news about PFC
- FAQ
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At HelloSafe, our expert has been tracking the performance of PFC for over three years. Every month, over a million users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment recommendations. In accordance with our ethical charter, we have never been, and will never be, compensated by PFC.
What is PFC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | PFC is a government-backed Indian financial institution. |
| 💼 Market | NSE, BSE | Listed on India’s primary stock exchanges, ensuring strong liquidity. |
| 🏛️ ISIN code | INE134E01011 | Enables clear identification for investors and international funds. |
| 👤 CEO | Parminder Chopra | Current leadership drives strategic growth and operational efficiency. |
| 🏢 Market cap | ₹1,36,344 Crores (~$16.4 billion USD) | Large market cap signals sector leadership and financial stability. |
| 📈 Revenue | ₹1,06,502 Crores (FY2025 projected) | Record revenue highlights robust demand for infrastructure finance. |
| 💹 EBITDA | Not individually disclosed; strong net profit | High profitability reflects sound lending strategy and risk management. |
| 📊 P/E Ratio (Price/Earnings) | 5.93–6.01 | Low P/E offers value opportunity versus peers and sector averages. |
PFC Stock Price
The price of PFC stock is down this week. As of today, PFC is trading at ₹413.25, reflecting a 24-hour decrease of -0.53%. Over the past week, the trend continues lower after a notable pullback. The company’s market capitalization stands at ₹1,36,344 crores, with an average three-month daily volume of 6.93 million shares. PFC’s P/E ratio remains attractive near 6, the dividend yield is 3.82%, and the stock has a beta of 0.68, indicating moderate volatility. Investors should note the recent price correction, which may offer opportunities for those with a medium-term perspective.
Our Full Analysis of the PFC Stock
We have thoroughly reviewed PFC's latest quarterly and annual financial results, as well as the stock's remarkable performance and correction phases over the past three years. Drawing on multiple sources—including financial indicators, technical charts, peer group comparison, and market sentiment—our proprietary algorithms deliver a holistic perspective. So, why might PFC stock once again become a strategic entry point into the infrastructure finance sector in 2025?
Recent performance and market context
PFC has experienced dynamic price movements in 2025, trading at ₹413.25 as of July 4. While the stock is currently down approximately 11% over the last six months and 22% over the past year (from a 52-week high of ₹580), this correction aligns with sector-wide consolidation, offering a potential reset for long-term investors. Notably, the stock’s 5-year trajectory—an impressive +513%—signals that persistent price resilience may return as market sentiment rotates back to growth themes.
Recent company milestones reinforce market confidence. FY2025 delivered a record consolidated net profit of ₹30,514 crores (+12% YoY) and an outstanding improvement in asset quality, with gross NPAs declining to 1.64% (from 3.02% a year earlier). The declaration of a final ₹2.05 per share dividend demonstrates robust cash flows and a consistent payout strategy, enhancing shareholder value.
The broader context is highly favourable. India’s infrastructure and power finance sector remains a policy and economic priority for the government, with schemes such as the Gati Shakti initiative and enhanced renewable energy targets fueling demand for specialized lenders like PFC. Interest rate stabilization and a constructive regulatory environment set the stage for further margin expansion and sector outperformance.
Technical analysis
A close analysis of PFC’s technical chart structure highlights growing evidence that the stock may be entering an attractive accumulation phase. The current price hovers just above the important support zone at ₹400, which also aligns with the 200-day moving average—historically a pivotal level for trend reversals.
- RSI (14d): The stock currently exhibits an RSI in the neutral-to-slightly-oversold zone, typically a constructive juncture for medium-term buyers.
- MACD: While the MACD recently showed weak momentum, there are bullish divergences emerging relative to the price lows, suggesting the correction could be maturing.
- Moving averages: The 20, 50, and 200-day moving averages are slowly converging, often a harbinger of a directional breakout. Trading above major short-term averages while retesting the long-term average underlines the prospect for mean-reversion.
Support at ₹357 (52-week low) and ₹400 has repeatedly been defended by buyers. Resistance at ₹485 and ₹580 remain key reference points, but a break above ₹420-430 would confirm a renewed uptrend. The technical setup appears primed for an upside move, with risk clearly defined by recent support levels.
Fundamental analysis
PFC’s fundamentals are among the most attractive in India’s financial sector—underscoring why market participants often revisit this stock during macro resets or sector thematic rotations.
- Sustained revenue growth: Annual revenue exceeded ₹1,06,500 crores, reflecting a 21% YoY increase in Q4 alone and a 5-year CAGR of 11%—outpacing most NBFC peers.
- Margin and profitability strength: Net profit for FY2025 reached ₹30,514 crores (up 12% YoY) alongside a ROE of 21%. Net Interest Income surged +41% YoY in the latest quarter, underlining efficient capital allocation and pricing power.
- Valuation comfort: PFC trades at a forward P/E of just 5.9-6x, below both historical multiples and sector averages. The price-to-book (1.16x) and price-to-sales (3.28x) ratios signal a very reasonable entry point relative to earnings quality, asset base, and peer valuations.
- Balance sheet and risk management: GNPA improved to 1.64%, NNPA to 0.38%—the best levels in over a decade. CRISIL's AAA rating signals best-in-class governance and oversight.
- Strategic expansion: Ongoing formation of transmission SPVs, overseas funding initiatives, and exposure to India’s renewable and grid-modernisation projects deliver powerful, forward-looking growth levers.
The company’s dominant position, government support (majority promoter holding), and history of innovative financing products round out a robust bullish thesis.
Volume and liquidity
PFC’s trading dynamics reinforce the market’s underlying confidence:
- 30-day average volume: At 6.93 million shares, daily turnover remains buoyant despite the broader market’s pullback, pointing to ongoing institutional activity and retail interest.
- Public float: With approximately 44% in public hands, the stock offers sufficient liquidity for both individual and professional investors—supporting price discovery and dynamic re-rating potential.
- Market capitalization: Standing at ₹1,36,344 crores, PFC is one of India's largest NBFCs, ensuring prominent index inclusion and ongoing domestic/international fund inflows.
High, sustained volumes confirm that the recent pullback has not dampened engagement, and that further upside moves are likely to enjoy strong market support.
Catalysts and positive outlook
Several tangible growth catalysts position PFC for renewed outperformance in the coming quarters:
- ESG and green transition: As India accelerates toward its renewable energy and grid-modernisation targets, PFC’s tailored products and financing for transmission projects put it at the center of the transition economy.
- Regulatory and governmental support: Low funding costs, government-backed projects, and overseas borrowing plans (targeting 15–20% of next year’s fundraising) enable expansion with minimal dilution and enhanced return profiles.
- Dividend and rewards profile: The company’s consistent, attractive dividend policy (3.8% forward yield) increases its appeal for yield-seeking investors, while its payout ratio (22.4%) leaves room for increases as earnings grow.
- M&A and expansion: The formation of new transmission SPVs, possible strategic acquisitions, and forays into overseas debt markets represent powerful triggers for value re-rating.
- Improved risk metrics and asset quality: Continued reduction in NPAs and improvement in credit risk indicators present clear signals of sustainable profitability.
- Peer sector momentum: With infrastructure finance a policy priority and competitors seeing similar (but less robust) improvements, PFC stands out as a best-in-class play on India's long-term energy and development cycle.
Investment strategies
The current market dynamics present multiple entry points for different types of investors:
- Short-term tactical trade: With the stock near key technical support and positive divergences developing, agile investors may position now for a swift upside move as momentum returns.
- Medium-term swing: Anticipated catalysts such as upcoming quarterly results, new funding initiatives, and dividend announcements offer attractive asymmetry for swing traders seeking to capitalize on news-driven breakouts.
- Long-term core holding: PFC’s proven resilience, sector leadership, balance sheet solidity, and policy tailwinds make it an excellent candidate for core portfolios targeting India’s infrastructure buildout and digital transition.
- Risk management: Clearly defined stops below ₹357 (major support) enable prudent positioning, while a break above ₹430 could be chased for further gains toward analyst targets of ₹527 and beyond.
Whether anticipating a technical bounce or building a position ahead of macro catalysts, PFC seems to represent an excellent opportunity for those seeking both growth and defensive characteristics.
Is it the right time to buy PFC?
In summary, PFC offers a compelling combination of value, growth, security, and yield—a rare profile in today’s market. Its record profit, robust asset quality, attractive valuation, and sector leadership fundamentally justify renewed investor interest. Technicals suggest a bullish phase is likely emerging, and the macro backdrop, policy support, and imminent company catalysts provide additional conviction for a favorable re-rating.
For investors at all levels, PFC appears exceptionally well-positioned at current prices, with risk/reward now skewed decisively to the upside. While all equities require prudent risk management, the current setup may indeed represent a strategic entry point into one of India’s preeminent infrastructure finance stocks.
For those looking to participate in India’s infrastructure growth story with conviction, PFC’s outlook, fundamentals, and market context together make it a stock that deserves serious consideration for a buy-orientated investment thesis.
How to buy PFC stock in India?
Buying PFC stock online is simple, secure, and accessible to any investor in India using a regulated broker platform. You can choose between two main methods: buying PFC shares directly (spot buying) for long-term ownership, or trading Contracts for Difference (CFDs) if you're looking for flexible leverage and the ability to profit from both rising and falling prices. Each method suits different investor profiles and risk appetites. For an overview of leading brokers in India and how they compare, please refer to the broker comparison further down the page.
Spot buying
A cash purchase means you buy PFC shares directly, becoming their registered owner. Common fees include a fixed brokerage commission per order, typically ₹20 to ₹25 per trade on Indian platforms.
Example of a gain scenario with PFC shares
If the PFC share price is ₹413, you can buy around 2 shares with a ₹1,000 stake, including a brokerage fee of around ₹25.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth ₹1,100.
Result: +₹100 gross gain, i.e. +10% on your investment.
This method suits those seeking steady growth, dividend income, and a classic investment approach.
Trading via CFD
CFD trading on PFC allows you to speculate on price movements without actually holding the shares. CFDs use leverage, meaning you can control a larger position with less capital, but also incur specific costs: mainly the spread (difference between buy/sell price) and overnight financing fees for positions kept open daily.
Gain scenario:
You open a CFD position on PFC shares, with 5x leverage—your ₹1,000 gives you ₹5,000 market exposure.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +₹400 gain, on a bet of ₹1,000 (excluding fees).
CFD trading is flexible and dynamic, but risks and costs are higher—especially when using leverage.
Final advice
Before investing, it’s important to compare the fees, platforms, and features offered by different brokers, as these can impact your total return. The best method—spot buying or CFD—depends on your investment timeline, risk tolerance, and financial objectives. You’ll find a detailed broker comparison to help you make the right choice further down this page.
Check out the best brokers in India!Compare brokersOur 7 tips for buying PFC stock
| 📊 Step | 📝 Specific tip for PFC |
|---|---|
| Analyze the market | Review India's power sector trends and PFC's role in financing energy and infrastructure projects. |
| Choose the right trading platform | Opt for a reputable Indian broker that offers seamless access to NSE/BSE and low transaction fees for PFC. |
| Define your investment budget | Consider your risk profile and set aside an amount that fits your goals, as PFC can be volatile. |
| Choose a strategy (short or long term) | Long-term holding may benefit from PFC's steady dividends and India's expanding power sector. |
| Monitor news and financial results | Track PFC’s quarterly financials, dividend announcements, and major sector or government updates. |
| Use risk management tools | Use stop-loss and limit-order features to protect your investment from sudden market movements in PFC. |
| Sell at the right time | Look to book profits when PFC hits resistance levels or before major policy or sector changes are expected. |
The latest news about PFC
PFC sustains strong financial momentum with a record FY2025 net profit of ₹30,514 crores. The latest financial results underscore PFC’s robust leadership in India's infrastructure finance sector, highlighted by superior revenue and profit growth through March 2025. Total revenue reached ₹1,06,502 crores, with net profit up 12.31% year-on-year and a healthy EPS of ₹69.67, reinforcing its dominant market standing.
Asset quality continues to improve significantly, further solidifying investor confidence. PFC’s Gross NPA dropped to 1.64% as of March 2025 compared to 3.02% the prior year, and Net NPA is now at just 0.38%. This substantial asset quality improvement signals prudent credit risk management—an especially positive factor given the firm's exposure to India’s evolving power sector.
PFC maintains its position as a trusted government-backed financial institution with a stable dividend policy. The Government of India’s 55.99% ownership and PFC’s AAA rating from CRISIL highlight ongoing public-sector support. The consistent dividend payout—recently a declared final dividend of ₹2.05 per share with a 3.82% yield—adds further appeal for income-focused investors in the Indian market.
Strategic expansion activities accelerate through new infrastructure SPVs and diversified project financing. In the past week, PFC initiated new transmission special purpose vehicles (SPVs) and advanced funding strategies to meet India’s growing energy infrastructure needs. These initiatives reinforce PFC’s status as a crucial facilitator of national grid modernization and renewable energy projects.
Market analysts remain optimistic, citing strong fundamentals and visible long-term growth catalysts for PFC. Leading brokerages in India continue to issue positive recommendations for PFC, driven by its sizable asset base, steady revenue growth (5-year CAGR: 11%), management stability, and alignment with government initiatives for power sector expansion and green transition.
FAQ
What is the latest dividend for PFC stock?
PFC currently pays a dividend. The latest declared final dividend is ₹2.05 per share, with payment scheduled after the ex-dividend date of July 11, 2025. This results in an appealing yield of 3.82%. PFC boasts a reliable dividend distribution policy, maintaining stable payouts alongside a strong pattern of financial growth.
What is the forecast for PFC stock in 2025, 2026, and 2027?
Based on the current price of ₹413.25, the projected value is ₹537 at the end of 2025, ₹619 at the end of 2026, and ₹827 at the end of 2027. These forecasts reflect both the strong fundamentals of PFC and sustained sector growth, supported by India's large-scale investments in power and infrastructure.
Should I sell my PFC shares?
Given the current valuation, sound asset quality, and PFC’s critical role in India’s power finance sector, holding your PFC shares may be a well-founded decision. The company’s strategic resilience and solid performance history, along with the ongoing expansion of the Indian infrastructure market, strengthen the mid- to long-term outlook for shareholders.
Is PFC stock eligible for any special tax treatment in India?
PFC is not eligible for tax-sheltered plans like PEA or ISA, but it is fully accessible through regular Indian brokerage accounts. Dividends from PFC are subject to TDS as per domestic tax rules, and long-term capital gains tax applies after one year of holding. Indian residents should monitor thresholds and file accordingly to benefit from available exemptions or reduced tax rates.
What is the latest dividend for PFC stock?
PFC currently pays a dividend. The latest declared final dividend is ₹2.05 per share, with payment scheduled after the ex-dividend date of July 11, 2025. This results in an appealing yield of 3.82%. PFC boasts a reliable dividend distribution policy, maintaining stable payouts alongside a strong pattern of financial growth.
What is the forecast for PFC stock in 2025, 2026, and 2027?
Based on the current price of ₹413.25, the projected value is ₹537 at the end of 2025, ₹619 at the end of 2026, and ₹827 at the end of 2027. These forecasts reflect both the strong fundamentals of PFC and sustained sector growth, supported by India's large-scale investments in power and infrastructure.
Should I sell my PFC shares?
Given the current valuation, sound asset quality, and PFC’s critical role in India’s power finance sector, holding your PFC shares may be a well-founded decision. The company’s strategic resilience and solid performance history, along with the ongoing expansion of the Indian infrastructure market, strengthen the mid- to long-term outlook for shareholders.
Is PFC stock eligible for any special tax treatment in India?
PFC is not eligible for tax-sheltered plans like PEA or ISA, but it is fully accessible through regular Indian brokerage accounts. Dividends from PFC are subject to TDS as per domestic tax rules, and long-term capital gains tax applies after one year of holding. Indian residents should monitor thresholds and file accordingly to benefit from available exemptions or reduced tax rates.
On the same topic
