Edelweiss recommended hold rating on Power Finance Corporation with a target price of Rs 155 in its research report dated February 13, 2017.
Edelweiss' research report on Power Finance Corporation
Going ahead, there are further repayment dues under UDAY which will exert further pressure on growth and NIMs. Asset quality improved marginally with GNPLs at 3.07% (3.21% in Q2FY17) and restructured book at INR 294bn (INR 299bn in Q2FY17). Despite favourable valuations (0.9x FY19E P/ABV), near- to medium-term challenges and uncertainties relating to riskier impaired loans could test high returns profile. Maintain ‘HOLD’.
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