52-week high alert: This multibagger power finance company receives 2 new special purpose vehicles (SPV’s) projects!

The stock is up 83 per cent in just 1 year and over 130 per cent in 3 years

On Monday, shares of Power Finance Corporation Limited gained 1.74 per cent to make a new 52-week high of Rs 202.20 per share from its previous closing of Rs 198.75.

PFCL announced that the following 2 Special Purpose Vehicles (SPV's) for the development of Independent Transmission Projects have been incorporated as wholly owned subsidiaries of PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited)

1) BIKANER III NEEMRANA TRANSMISSION LIMITED for development of "Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-1: Bikaner Complex) Part-A" on June 08, 2023.

2) NEEMRANA II BAREILLY TRANSMISSION LIMITED for development of "Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-1: Bikaner Complex) Part-D' on June 08, 2023.

Power Finance Corporation Limited is a Systemically Important Non-Deposit taking NBFC registered with the RBI as an Infrastructure Finance Company. It is engaged in extending financial assistance to the Indian power sector. 

According to the financials, PFCL has a market cap of over Rs 50,000 crore with a 1-year CAGR of 84 per cent. The company’s maximum stake is owned by The President of India (55.99 per cent) as of March 2023. The company reported excellent numbers in its Quarterly Results and annual results.

The stock has a PE of 4.52x and a ROE of 21 per cent. The stock is up 83 per cent in just 1 year and over 130 per cent in 3 years. Investors should keep an eye on this PSU stock under the radar.