Multibagger from its 52-week low: This PSU power finance company receives new special purpose vehicles (SPV’s) project from Ministry of Power!

The stock is up 98 per cent in just 1 year and over 130 per cent in 3 years.

PFCL announced that the following special purpose vehicle (SPV) for the development of independent transmission projects has been incorporated as wholly owned subsidiary of PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited)

TIRWA TRANSMISSION LIMITED for development of "Construction of 220/132/33 KV Tirwa (Kannauj) Substation with Associated Lines and LILO of One Circuit of 400 KV DIC (Twin Moose) Shamli-Aligarh Line at THDC 2*660 MW Khurja Power Plant.

PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited) has been nominated as the 'Bid Process Coordinator' for the selection of developers through tariff-based competitive bidding for the Independent Transmission Projects (ITs) by the Ministry of Power, Gol.

The SPV has to be transferred to the Successful Bidder selected through International Competitive Bidding Process under Tariff Based Competitive Bidding Guidelines for Transmission Service issued by the Ministry of Power.

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 53,000 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.

On Thursday, shares of Power Finance Corporation Limited gained 0.07 per cent to Rs 201.10 per share from its previous closing of Rs 198.75 with an intraday high of Rs 203.25 and an intraday low of Rs 199.50.

The stock has a PE of 4.57x and a ROE of 21 per cent. The stock gave multibagger returns of 109.21 per cent from its 52-week low of Rs 97.15. The stock is up 98 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.