₹94.70 CMP :

Flash News Investment - - DIWALI RECOMMENDATION -

In­cor­po­rated in 1986, Power Fi­nance Cor­po­ra­tion (PFC) is a Sched­ule-A Navratna CPSE and is one of the lead­ing non-bank­ing fi­nan­cial com­pany (NBFC) in the coun­try. It is a spe­cialised fi­nan­cial in­sti­tu­tion in the power sec­tor and is a dom­i­nant player with a mar­ket share of 20 per cent. The com­pany has to­tal loan as­set book of Rs 2,78,000 crore, out of which 82 per cent is from the govern­ment sec­tor and the rest 18 per cent is from the pri­vate sec­tor. The power sec­tor has seen some signs of re­vival with im­proved fi­nan­cial and op­er­a­tional per­for­mance. Go­ing for­ward, the in­creased govern­ment fo­cus and spend­ing on the power sec­tor bodes well for the PFC. The stock of Power Fi­nance Cor­po­ra­tion had given a 'mega­phone' pat­tern break­down at Rs 110 level on Fe­bru­ary 27 and thereby plunged up to its 52-week low level of Rs 67.60 where it hit a dou­ble bot­tom on July 16 and 17, fol­lowed by a bullish re­ver­sal. The stock had been wit­ness­ing mul­ti­ple re­sis­tances near Rs 90.50-91.50 ini­ti­ated since March 2018. It hit a high at Rs 90.70 on Septem­ber 10 and re­treated yet again near Rs 72.50, where it hit a triple bot­tom. The stock ral­lied sup­ported by a spurt in os­cil­la­tors from 38 to 72 and ris­ing vol­umes. The stock suc­ceeded in break­ing the mul­ti­ple re­sis­tances at the end of Oc­to­ber.

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