Power Finance Corporation Limited (NSE: PFC) was listed on the NSE on February 23, 2007. In the last five years, its stock has given a massive return of more than 500%. Will PFC continue to provide such great returns in the future as well? Let’s explore PFC’s growth potential and the PFC share price target 2025 to 2050 in this article.
About PFC
PFC (Power Finance Corporation) was founded in 1986. It is an Indian government-owned company under the Ministry of Power. PFC played an important role in funding power projects across the country. PFC provides loans to power companies, assists in the development of electricity infrastructure, and finances renewable energy projects.
PFC Business Model
- Fund-Based Financial Services: PFC offers long-term and short-term loans for power generation, transmission, and distribution projects to central and state sector power utilities, as well as private sector developers.
- Non-Fund-Based Services: The corporation provides services such as guarantees, letters of comfort, and consultancy services, which support clients in project implementation and financial planning.
- Renewable Energy Financing: PFC finances renewable energy projects, including solar, wind, and hydroelectric power initiatives.
PFC Fundamental Analysis
| Stock Name | Power Finance Corporation Ltd. |
|---|---|
| NSE Symbol | PFC |
| Market Cap | ₹ 1,37,862 Cr. |
| 52W High | ₹ 580 |
| 52W Low | ₹ 357 |
| Stock P/E | 6.18 |
| Book Value | ₹ 333 |
| Dividend Yield | 3.29 % |
| ROCE | 9.85 % |
| ROE | 21.3 % |
| Face Value | ₹ 10.0 |
| Industry PE | 22.7 |
| Price to book value | 1.25 |
| Debt to equity | 8.27 |
| PEG Ratio | 0.42 |
| Quick ratio | 1.33 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters + | 55.99% | 55.99% | 55.99% |
| FIIs + | 16.49% | 17.19% | 18.84% |
| DIIs + | 18.63% | 18.21% | 16.17% |
| Public + | 8.89% | 8.58% | 8.97% |
| No. of Shareholders | 4,29,397 | 7,07,579 | 11,26,259 |
Key Factors Driving PFC’s Future Growth
- Growing Power Demand: As India’s population and industries develop, so does the electricity demand, resulting in more projects for PFC.
- Expansion into Renewable Energy Financing: Aligning with India’s commitment to achieving 500 GW of non-fossil fuel capacity by 2030, PFC increases its focus on financing renewable energy projects. The company has allocated significant funds towards green projects, aiming to finance a total of 50 GW of renewable capacity by 2030.
- Diversification into Infrastructure Financing: While maintaining its core focus on the power sector, PFC has diversified its loan portfolio to include infrastructure projects, with a cap of 30% on such investments.
Pros of PFC
- High Return on Equity (ROE): PFC’s 5-year average ROE stands at 20.2%, indicating effective management and profitable operations.
- Low P/B Ratio (Undervalued Stock): PFC Price to Book Value (P/B) ratio is 1.25, which shows that its stock is trading close to its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: PFC’s PE ratio is 6.18, which is lower than the industry average of 22.7, making it relatively undervalued and potentially a good investment opportunity.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 18.84% in March 2025 from 18.04% in December 2024, which indicates growing confidence in the PFC’s future potential by the FIIs.
Cons of PFC
- Low Return on Equity (ROCE): PFC’s 5-year average ROCE is 9.18%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- High Financial Risk: PFC has a high debt-to-equity ratio of 8.27, indicating a strong dependency on debt. This increases financial risk, raises interest costs, and may have an impact on profitability.
- Low Interest Coverage Ratio: The interest coverage ratio of PFC is 1.60, which shows that the company is struggling to pay interest.
- Decrease in DIIs Holding: Domestic Institutional Investors (DIIs) have reduced their holding to 16.17% in March 2025 from 17.16% in December 2024, indicating a decline in DIIs’ confidence in the company’s future growth prospects.
PFC Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 2,640 | 3,300 | 3,300 |
| Reserves | 81,518 | 97,847 | 106,746 |
| Borrowing | 751,158 | 861,961 | 910,447 |
| Other Liabilities | 60,796 | 75,770 | 82,868 |
| Total Liabilities | 896,112 | 1,038,877 | 1,103,361 |
| Fixed Assets | 782 | 764 | 763 |
| CWIP | 22 | 39 | 53 |
| Investments | 5,973 | 10,971 | 13,219 |
| Other Assets | 889,334 | 1,027,102 | 1,089,326 |
| Total Assets | 896,112 | 1,038,877 | 1,103,361 |
In 2025, if PFC continues its current growth trajectory, maintains healthy loan book quality, and benefits from strong infrastructure spending and power sector reforms, then the PFC share price for 2025 is expected to be around ₹550 in normal conditions. In a bear market, it might be ₹520, and in a bull market, it may go up to ₹650.
| PFC Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 520 |
| 2nd Target | 550 |
| 3rd Target | 650 |
In 2026, the PFC share price is expected to be around ₹700 in a normal situation. In a bear market, it might be ₹650, and in a bull market, it may cross ₹850.
| PFC Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 650 |
| 2nd Target | 700 |
| 3rd Target | 850 |
According to our analysis, the PFC share price is expected to be around ₹800 in 2027. In a bear market, it might be ₹750, and in a bull market, it may cross ₹1100.
| PFC Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 750 |
| 2nd Target | 800 |
| 3rd Target | 1100 |
According to our analysis, the PFC share price may trade near ₹1050 by 2028; bearish conditions could pull it down to ₹900, while a strong bull run might lift it to ₹1400.
| PFC Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 900 |
| 2nd Target | 1050 |
| 3rd Target | 1400 |
In a normal situation, the PFC share price is projected to be approximately ₹1300 in 2029. In a bear market, the value may be as low as ₹1100, while in a bull market, it may rise to ₹1850.
| PFC Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 1100 |
| 2nd Target | 1300 |
| 3rd Target | 1850 |
By 2030, if PFC (Power Finance Corporation) continues to maintain its current growth trajectory, improve asset quality, and capitalizes on India’s expanding energy infrastructure, then the PFC share price target for 2030 is projected to be approximately ₹1500 under normal market conditions. In a bear market, the value may be as low as ₹1300, while in a bull market, it may rise to ₹2400, driven by robust earnings growth, higher disbursements, and improved investor sentiment in the power sector.
| PFC Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 1300 |
| 2nd Target | 1500 |
| 3rd Target | 2400 |
By 2035, the PFC share price is projected to be around ₹3500 under normal conditions. In adverse markets, the price could fall to ₹2600, while favorable conditions might push it up to ₹7200.
| PFC Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 2600 |
| 2nd Target | 3500 |
| 3rd Target | 7200 |
Under normal conditions, the PFC share price might hit ₹10,000 by 2040. A bearish trend could lower it to ₹5200, whereas a bullish surge could raise it to ₹21,600.
| PFC Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 5200 |
| 2nd Target | 10,000 |
| 3rd Target | 21,600 |
In 2050, the PFC share price is expected to be around ₹50,000 in a normal situation. In a bear market, it might be ₹20,800, and in a bull market, it may go up to ₹1,29,600.
| PFC Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 20,800 |
| 2nd Target | 50,000 |
| 3rd Target | 1,29,600 |
| Years | Target Price |
|---|---|
| PFC Share Price Target 2025 | ₹520 to ₹650 |
| PFC Share Price Target 2026 | ₹650 to ₹850 |
| PFC Share Price Target 2027 | ₹750 to ₹1100 |
| PFC Share Price Target 2028 | ₹900 to ₹1400 |
| PFC Share Price Target 2029 | ₹1100 to ₹1850 |
| PFC Share Price Target 2030 | ₹1300 to ₹2400 |
| PFC Share Price Target 2035 | ₹2600 to ₹7200 |
| PFC Share Price Target 2040 | ₹5200 to ₹21,600 |
| PFC Share Price Target 2050 | ₹20,800 to ₹1,29,600 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: Bank of Maharashtra Share Price Target 2025 to 2050
