POWER FINANCE CORP.
₹94.70 CMP :
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.