Shares of Power Finance Corporation rose 6.5 percent on Monday, July 24 to hit a new 52-week high after the company informed through an official filing that it has entered into loan agreements worth more than ₹2.37 lakh crore with 20 companies.
As part of its strategy to establish itself as the primary funding agency for the energy transition, the company has signed agreements with various companies operating in the solar, wind, green hydrogen, battery storage, and electric vehicles sectors, as well as manufacturers of green energy equipment.
Among the companies involved are Adani Group, Greenco, ReNew Power, Continuum, Avaada, JBM Auto, Rajasthan Renewable Energy, Megha Engineering & Infrastructure, and several others.
During Monday’s trade, the stock opened at a price of Rs. 230 per share against the previous close of Rs. 227 per share and grew further during the early trading session to touch an intraday high of Rs. 241.90.
It was trading at ₹239.60, up by 5.55 percent at 12:10 p.m. on the NSE.
The stock touched a 52-week-low of Rs. 100.85 on October 17, 2022, indicating that at the current level, the stock is trading over 137 percent above its 52-week low.
The stock has grown nearly 20 percent in the last one month. Moreover, in the past six months, it has surged almost 60 percent. Furthermore, the stock yielded a positive return of over 184 percent in the last five years.
Recently, PFC expanded its loan portfolio to include infrastructure projects encompassing refineries, ports, roads, metro, biofuels, and waste-to-energy projects.
On July 21, the company introduced a public issue of ₹500 crore for non-convertible debentures (NCDs), with an additional greenshoe option of ₹4,500 crore, making the total issue size ₹5,000 crore.
In FY2023, PFC recorded consolidated revenue of ₹77,568.30 crore, increasing from ₹76,261.66 crore in the previous year. The company's net income amounted to ₹21,178.6 crore, as compared to ₹18,768.2 crore in the previous year.
Power Finance Corporation Limited is an India-based non-banking financial company primarily engaged in providing financial assistance to the power sector. The company’s fund-based products include project term loans, lease financing for the purchase of equipment, and short/medium-term loans to equipment manufacturers.
According to a MintGenie poll, an average of 8 analysts have a ‘STRONG BUY’ call on the stock.