PFC Looks attractive for dividend Play

16 мая 2022 г.

The company was conferred with the status of Navratna PSU by Government of India on 22nd June, 2007. Under the Navratna status, the government has delegated enhanced powers to CPSEs having comparative advantage and the potential to become global players. The corporation is registered as a Non Banking Financial Company with the RBI.

PFC is providing large range of financial products and services like project term loan, lease financing, direct discounting of bills, short term loan, consultancy services etc for various power projects in generation, transmission, distribution sector as well as for renovation & modernisation of existing power projects.

The Ministry of Power, Central Electricity Authority and PFC are working together to facilitate development of Ultra Mega Power Projects with the capacity of about 4000 MW each under Tariff based competitive bidding route. Being large in size, these projects will meet the power needs of number of states through transmission of power on regional and national grids.

The company’s clients are State Electricity Boards, State Power Utilities, State Electricity/Power Departments, Other State Departments (like Irrigation Department) engaged in the development of power projects, Central Power Utilities, Joint Sector Power Utilities, Equipment Manufacturers and Private Sector Power Utilities

Some fundamental ratios :
Market Cap 27,681.25 Cr.
Earnings per share (EPS) 52.01
Price-Earning Ratio (PE) 2.02
Industry PE 3.22
Book Value / Share 285.08
Price to Book Value 0.37
Dividend Yield 9.54 %
No. of Shares Subscribed 264.01 Cr.
FaceValue 10

My view: This is one of My strategy where I plane to buy PSUs at above 10 % dividend yield. I bought REC around 90 where I saw a dividend Yield of 16% , If you see a PSU whose dividend Yiels is more than 15 % than , it is a great opportunity to capture the value.