This NBFC stock gained 6% after the company announced bonus shares in the ratio of 1:4. The state owned company was earlier a Navaratna which was raised to Maharatna on 12 October 2021.
Share price of Power Finance Corporation closed at Rs. 272.90 per piece and traded 6% higher to reach its intra- day high of Rs. 273 levels, 1.5% lower than its 52- week high of Rs. 277.20 per share. The stock has given a multibagger return of 120.75% in the last year and 182.04% in the last three years.
According to a recent exchange filing, the company announced the record date as 21 September 2023 for bonus issue of shares in the ratio of 1:4. That means one equity share of Rs.10 each fully paid-up will be allotted for every four existing equity shares of Rs.10 each fully paid-up.
Although, this decision is subject to approval by the members at the 37th Annual General Meeting of the company which is scheduled to be held on 12 September 2023.
As per the company’s financial statements, it made a revenue of Rs. 20,992.49 crore in Q1FY24, an increase of 4.6% from Rs. 20,060.86 crore in Q4FY23. Its net profit recorded a fall of 2.1% from Rs. 4,676.11 crore in Q4FY23 to Rs. 4,576.32 crore in Q1FY24. The company has maintained a P/E ratio of 4.21 against its industry average ratio of 7.74. It also has a dividend yield of 4.87%.
Power Finance Corporation is a state owned company which acts as a non- banking finance corporation. The company provides affordable and competitive products. It provides financial assistance to power projects across the country related to transmission, generation and distribution.
Written by Bhumika Khandelwal
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
