One of India’s top NBFCs and largest infrastructure financing PSU surged 7.3 percent to a 52-week high of Rs 244 per share after the company signed a Rs 2.37 Lakh crore MOU in the renewable energy industry.
At 1:34 p.m., Power Finance Corporation Ltd shares were trading at Rs 242.70 a share on the National Stock Exchange, up Rs 15.70 or 6.92 percent,with a market capitalization of Rs 64,101 crores.
According to the company’s BSE filings, the company has signed various Memorandum of Understanding (MOU) worth 2.37 Lakh Crore with 20 Companies both in the public and private sectors. These agreements, which are part of the company’s plan to position itself as the leading funding agency for energy transition, were signed with companies in the solar, wind, green hydrogen, battery storage, and electric vehicles space, as well as green energy equipment manufacturers.
The MOU is significant in light of ongoing deliberations on energy transition under India’s G20 presidency.
The company’s share price climbed from Rs 113.15 to current values during the last year, yielding multibagger returns of 114 percent. As a result, if an investor bought 1 lakh company shares in the previous year, their holdings are now worth 2.14 lakhs!
Power Finance Corporation (PFC) is a financial organisation that specialises in power sector finance, offering financial support to power projects in India such as power generation, transmission and distribution.
The company’s profitability ratio has marginally increased for fiscal years 22-23, with a return on equity ratio of 18.88 percent and a return on capital employed ratio of 65.09 percent, with a net profit margin of 27.30 percent and an operating margin of 94.77 percent.
Company’s revenue increased by 2 percent year on year, from Rs 76,261 crore in FY 21-22 to Rs 77,568 crore in FY 22-23.During the same year, net profit climbed by 13 percent from Rs. 18,790 crore to Rs. 21,178 crore.
As per current shareholding pattern,the promoters holds 55.99 percent of the firm, while domestic institutional investors holds 18.14 percent and Foreign institutional investors holds 17.49 percent,
Written by Omkar Chitnis
