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PFC Stock Tumbles Over 5% on Q1 Results
10 Aug
Summary
- PFC's Q1 FY27 net profit rose 2% YoY to Rs 7,012 crore.
- Shares dropped over 5% after the company reported results.
- Motilal Oswal maintained a 'Buy' rating but cut target to Rs 500.
Power Finance Corporation (PFC) shares saw a sharp decline of over 5% on Monday, reaching Rs 398, their lowest point in more than four months. This market reaction followed the company's Q1 FY27 financial results, which revealed a 2% year-on-year increase in consolidated net profit, amounting to Rs 7,012 crore. Revenue from operations saw a slight dip to Rs 28,527 crore from Rs 28,539 crore in the same quarter last year.
PFC also declared an interim dividend of Rs 3.90 per share, with a record date set for August 27. Motilal Oswal Financial Services noted that while PFC's standalone net profit exceeded estimates with a nearly 5% YoY growth to Rs 4,750 crore, the net interest income declined by 4%, missing expectations. The brokerage adjusted FY27 and FY28 earnings per share estimates downwards by 2% and 5% respectively, due to anticipated lower loan growth and margin contraction, while maintaining a 'Buy' rating with a reduced target price of Rs 500.
