Buy PFC; target of Rs 300: Firstcall Research

Firstcall Research's report on Power Finance Corporation (PFC)

"Power Finance Corporation (PFC), total Income has increased from Rs. 56360.90 million for the quarter ended Mar 31st, 2014 to Rs. 64214.90 million for the quarter ended 31st Mar, 2015, registered a growth of 13.94% y-oy. In Q4 FY15, Net profit Jumps to Rs. 15607.60 million compared to Rs. 14114.10 million in Q4 FY14. In the same Dec quarter, Profits before interest, Depreciation and tax was Rs. 63989.70 million an increase of 15.29% y-o-y against Rs.55504.60 million over corresponding quarter of previous year. During the quarter, Disbursements in Generation were 47% whereas disbursements in Transmission 4% & for Distribution is 2% and Others (including Transitional Finance , Studies, Short Term Loans, Buyer Line of Credit, funding of regulatory assets) by 47% from the total amount disbursements."

"During the 4th Quarter of FY15, Loan Assets of the company increased by 15.09% to Rs. 2175160.00 million from Rs. 1889950.00 million. For the quarter end of 31st Mar 2015, Net worth increased by 17.69% of Rs. 322190.00 million compared to Rs. 273750.00 million for the quarter end of 31st Mar, 2014. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. Over FY2014-17E, we expect the company to post a CAGR of 16% and 12% in its top-line and bottom-line respectively. Hence, we recommend ‘BUY’ for the stock with a target price of Rs 300 on the stock", says Firstcall Research Report.

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