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.

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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.

Outlook

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.

For all recommendations report, click here

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