PFC share price BSE, PFC share price target, PFC Q3 result 2024: Shares of Power Finance Corporation (PFC) traded with a sharp cut in the afternoon trade on Friday (February 9), even as global brokerage CLSA retained its buy view on the counter with an increased target of Rs 550 from Rs 490 earlier. The new target implies an upside potential of 17 per cent from the last closing price of Rs 468.45. At around 1 pm, shares of the financing company traded with a cut of Rs 47.1 apiece, or 10.05 per cent, at Rs 421.35.

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The drag in the stock comes a day after the company released its Q3 numbers on Thursday. The state-owned firm for the December-ended quarter posted an over 20 per cent increase in its consolidated net profit to Rs 6,294.44 crore on the back of higher revenues.

Total income in the quarter rose to Rs 23,593.40 crore from Rs 19,662.65 crore logged in the same period a year ago, the PTI report noted.

PFC share price target

Brokerage CLSA is of the view that PFC, during the review period, posted good margins; nevertheless, it recorded slower growth. Net profit at the firm is driven by a healthy 16 per cent year-on-year (YoY) growth in net interest income (NII) and dragged down by higher credit costs, it said.

Asset resolution in line with guidance led to a 15-bps decline in GNPA, and management guided two more project resolutions in the coming months, the brokerage added.

In light of the above, the brokerage moderated its FY24CL growth to 15 per cent and expects 17 per cent growth in FY25CL as new segments will start kicking in. PFC is currently trading at a 20 per cent discount to REC Ltd. on a price-to-book value (P/B) basis.

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