Buy Power Finance Corp; target of Rs 210: Emkay Global Financial
Emkay Global Financial is bullish on Power Finance Corp has recommended buy rating on the stock with a target price of Rs 210 in its research report dated January 14, 2021.
January 15, 2021 / 01:49 PM IST
Emkay Global Financial's report on Power Finance Corp
We believe that with the rising share of PSU exposure and stringent underwriting practices, PFC’s asset quality trend is likely to improve. Our account-byaccount analysis of stressed assets indicates that the current provision coverage is adequate for previous years’ NPAs. In our view, the government’s Aatmanirbhar Bharat package for discoms should boost loan growth in the near term.
We are initiating coverage on Power Finance Corp. (PFC) with a Buy rating and a TP of Rs210 (+73% upside). Our TP implies 1.0x FY23E adjusted standalone P/B multiple and 6x P/E.
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