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Economic Times
10-07-2025
- Business
- Economic Times
REC, PFC shares rally up to 3% after Morgan Stanley initiates coverage with overweight rating
Shares of power financing PSUs REC Ltd and Power Finance Corporation (PFC) climbed up to 3% on Thursday after Morgan Stanley initiated coverage on the two stocks with an 'overweight' rating, citing attractive valuations, robust loan growth, and stable asset quality. ADVERTISEMENT The global brokerage has set a price target of Rs 485 for REC and Rs 508 for PFC, implying a potential upside of 23% and 21%, respectively, from their previous closing levels. Shares of Power Finance Corporation (PFC) climbed as much as 3.1% to Rs 430.75 on the BSE, while REC shares jumped as much as 2.6% to Rs 401.65. 'PFC and REC should each achieve 12% F25-28e loan CAGRs and 17-19% average ROE,' Morgan Stanley said in a note titled India Financials | PFC and REC: Attractive entry point; initiate with Stanley said it expects both PFC and REC to deliver compound annual loan growth of 12% between FY25 and FY28, along with an average return on equity (ROE) of 17–19%.'At a F27e P/E of 5-6x for self-sustaining low-mid teens loan growth and a 3.8-4.5% dividend yield, with asset quality likely to be stable, we find risk-reward compelling vs. our coverage,' the brokerage said. ADVERTISEMENT The rally in REC and PFC comes despite a broader correction in their share prices over the past year. While non-banking financial company (NBFC) stocks have broadly rallied year-to-date, shares of REC and PFC have declined between 24% and 35% in the past 12 months. In contrast, the benchmark Sensex has risen 4.7% during the same period. ADVERTISEMENT From a technical perspective, the two stocks are currently trading with contrasting momentum signals. PFC shares are showing bullish undertones, trading above seven of their eight key simple moving averages (SMAs), including the 5-day to 150-day averages, and only below the 200-day SMA. The Relative Strength Index (RSI) stands at 52.6, suggesting the stock is neither overbought nor oversold, while the MACD at 1.6 remains above both the center and signal lines, indicating ongoing bullish momentum. ADVERTISEMENT REC, on the other hand, remains under technical pressure. The stock is trading below five of its eight key SMAs, namely the 30-day, 50-day, 100-day, 150-day, and 200-day averages, though it is above the 5-day, 10-day, and 20-day SMAs. The RSI at 42.2 and MACD at -3.2, which is below both the center and signal lines, point to a bearish Stanley highlighted the companies' ability to sustain operations while delivering strong shareholder returns. 'PFC and REC should each achieve 12% F25-28e loan CAGRs and 17-19% average ROE,' the brokerage said. It also noted that both stocks offer current dividend yields in the range of 3.8-4.5%, based on a 30% payout ratio. ADVERTISEMENT Despite recent underperformance, the brokerage sees this as an 'attractive entry point,' underpinned by the combination of steady fundamentals and inexpensive valuations. Also read | Eternal shares up 30% since March. Investors are feasting, but can Zomato's parent justify the appetite? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
10-07-2025
- Business
- Time of India
REC, PFC shares rally up to 3% after Morgan Stanley initiates coverage with overweight rating
Live Events Technical signals diverge Valuation case (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of power financing PSUs REC Ltd and Power Finance Corporation (PFC) climbed up to 3% on Thursday after Morgan Stanley initiated coverage on the two stocks with an 'overweight' rating, citing attractive valuations, robust loan growth, and stable asset global brokerage has set a price target of Rs 485 for REC and Rs 508 for PFC, implying a potential upside of 23% and 21%, respectively, from their previous closing of Power Finance Corporation (PFC) climbed as much as 3.1% to Rs 430.75 on the BSE, while REC shares jumped as much as 2.6% to Rs 401.65.'PFC and REC should each achieve 12% F25-28e loan CAGRs and 17-19% average ROE,' Morgan Stanley said in a note titled India Financials | PFC and REC: Attractive entry point; initiate with Stanley said it expects both PFC and REC to deliver compound annual loan growth of 12% between FY25 and FY28, along with an average return on equity (ROE) of 17–19%.'At a F27e P/E of 5-6x for self-sustaining low-mid teens loan growth and a 3.8-4.5% dividend yield, with asset quality likely to be stable, we find risk-reward compelling vs. our coverage,' the brokerage rally in REC and PFC comes despite a broader correction in their share prices over the past year. While non-banking financial company (NBFC) stocks have broadly rallied year-to-date, shares of REC and PFC have declined between 24% and 35% in the past 12 months. In contrast, the benchmark Sensex has risen 4.7% during the same a technical perspective, the two stocks are currently trading with contrasting momentum signals. PFC shares are showing bullish undertones, trading above seven of their eight key simple moving averages (SMAs), including the 5-day to 150-day averages, and only below the 200-day SMA. The Relative Strength Index (RSI) stands at 52.6, suggesting the stock is neither overbought nor oversold, while the MACD at 1.6 remains above both the center and signal lines, indicating ongoing bullish on the other hand, remains under technical pressure. The stock is trading below five of its eight key SMAs, namely the 30-day, 50-day, 100-day, 150-day, and 200-day averages, though it is above the 5-day, 10-day, and 20-day SMAs. The RSI at 42.2 and MACD at -3.2, which is below both the center and signal lines, point to a bearish Stanley highlighted the companies' ability to sustain operations while delivering strong shareholder returns. 'PFC and REC should each achieve 12% F25-28e loan CAGRs and 17-19% average ROE,' the brokerage said. It also noted that both stocks offer current dividend yields in the range of 3.8-4.5%, based on a 30% payout recent underperformance, the brokerage sees this as an 'attractive entry point,' underpinned by the combination of steady fundamentals and inexpensive valuations.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
India Today
20-06-2025
- Business
- India Today
Power Finance Corporation share price jumps 6% today. Here's why
Shares of Power Finance Corporation (PFC) saw a sharp rise of nearly 6% on Friday, climbing to Rs 412 during the day's rally in the stock came after the Reserve Bank of India (RBI) finalised new guidelines on project finance, which are seen as a positive move for companies with large exposure to infrastructure PFC has faced some pressure in recent months, with its stock falling 9.14% in the last six months and 14.44% over the past year, Friday's gain marks a strong rebound following the regulatory main reason behind the share price jump is the RBI's decision to ease provisioning norms for under-construction infrastructure projects. Under the new rules, lenders including banks and non-banking financial companies (NBFCs) like PFC will need to set aside less money as a cushion for possible loan defaults on such financial institutions had to keep a higher amount of funds as a safeguard, even when loans were not yet overdue. This impacted the funds available for fresh lending. Now, with reduced provisioning requirements, lenders will be able to free up more capital and offer more loans, especially in areas such as power, housing, roads, railways, and other key infrastructure is particularly beneficial for PFC, as it plays a key role in financing power and energy infrastructure in India. The company often deals with long-term loans tied to large projects, many of which are under construction for years before they start generating RBI's decision is being viewed as a step toward supporting infrastructure development by improving access to credit. The new rules may help in speeding up the pace of project financing, reduce the burden on lenders, and bring more confidence to the responded positively to the development, leading to strong buying in PFC shares. As a result, the stock not only recovered some of its past losses but also gained attention for potential upside in the near term. advertisement
Business Upturn
20-06-2025
- Business
- Business Upturn
PFC shares jump over 3% as RBI issues project finance norms for banks, NBFCs
By Aman Shukla Published on June 20, 2025, 09:31 IST Shares of Power Finance Corporation (PFC) rose over 3% in early trade on Friday, reacting positively to the Reserve Bank of India's (RBI) finalised project finance guidelines released on June 19. As of 9:28 AM, the shares were trading 3.19% higher at Rs 402.80. The updated norms ease provisioning requirements for lenders, which had been a concern under the earlier draft guidelines proposed in May 2024. Under the new rules, banks and financial institutions must maintain a 1.25% general provision on loans linked to commercial real estate (CRE) projects during the construction phase. For CRE-Residential Housing (CRE-RH) and other infrastructure projects under construction, the requirement is set at 1%. During the operational phase, the provisioning is further relaxed to 1% for CRE, 0.75% for CRE-RH, and 0.40% for other projects. The final guidelines are notably less stringent than the draft, which had recommended a uniform 5% provision for under-construction projects. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Upturn
13-06-2025
- Business
- Business Upturn
ACME Solar commissions additional 19.8 MW at Shapar wind project
ACME Solar Holdings Limited has commissioned an additional 19.8 MW of wind power capacity at its ongoing project in Shapar, Gujarat. This follows the earlier commissioning of 26.4 MW in May 2025, taking the total installed capacity at the site to 46.2 MW out of a planned 50 MW. The Shapar wind project, located in a high wind resource region of Gujarat, is being implemented under ACME Pokhran, a special purpose vehicle (SPV) of the company. The project is financed by Power Finance Corporation (PFC). Electricity generated from the project is being supplied under a 25-year Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL). ACME Solar is executing the project using its in-house Engineering, Procurement, and Construction (EPC) capabilities. The wind energy generated is evacuated through a dedicated single-circuit 220 kV transmission line to the Shapar substation. A 33/220 kV pooling station is used to step up the voltage for grid integration. The substation will also support ACME's other upcoming wind project, currently in advanced stages of development. With this commissioning, ACME Solar's total operational capacity has increased to 2,826.2 MW. Full commissioning of the 50 MW Shapar wind project is expected in the coming days. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
