Multibagger in just 1 year: This infrastructure finance company receives incorporation of new special purpose vehicle (SPV) project from Ministry of Power!
The stock gave multibagger returns of 108 per cent in just 1 year and over 170 per cent in 3 years.
Power Finance Corporation Limited inform that the following Special Purpose Vehicle (SP) Company has been incorporated as a wholly owned subsidiary of PFC Consulting Limited (PFCCL) (a wholly owned subsidiary of Power Finance Corporation Limited (PFC):
PFCCL has been nominated as the 'Bid Process Coordinator' for the selection of a developer through tariff-based competitive bidding for Independent Transmission Projects (ITs) by the Ministry of Power, Gol. According to the provisions of tariff-based competitive bidding guidelines issued by the Ministry of Power, the BPC is responsible for preparing the project profile and initiating the process of land acquisition and forest clearance, if required.
These activities necessitate the incorporation of a Special Purpose Vehicle (SPV), which will undertake various preparatory activities for the transmission projects, such as survey and report preparation, as well as the initiation of land acquisition and forest clearance procedures, if necessary. The SPV must be transferred to the Successful Bidder selected through the International Competitive Bidding Process under the Tariff-Based Competitive Bidding Guidelines for Transmission Service, as issued by the Ministry of Power.
An intra-state transmission system has been proposed, consisting of the following substations: a 4400/220 kV, 2x500 MVA GIS Substation in Jewar, a 220/33 kV, 2360 MVA GIS Substation in Cantt (Chaukaghat) Varanasi, a 220/33 kV, 3x60 MVA GIS Substation in Vasundhara (Ghaziabad), and a 220/132/33 kV, 2x160+2x40 MVA Substation in Khaga (Fatehpur), along with associated lines.
The aforementioned SPV, established as a wholly owned subsidiary of PFCCL, will develop the transmission scheme. Approved by the Boards of Directors of PFCCL and PFC, the SPV will be transferred to the successful bidder after the bidding process. The selected bidder will carry out the project development.
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According to the financials, PFCL has a market cap of over Rs 60,000 crore and a 3-year stock price CAGR of 40 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 Tuesday, shares of Power Finance Corporation Limited gained 1.25 per cent to Rs 227.10 per share from its previous closing of Rs 224.30. The stock also traded at a new 52-week high of Rs 230.40 per share.
The stock has a PE of 5.10x and a ROE of 21 per cent. The stock gave multibagger returns of 108 per cent in just 1 year and over 170 per cent in 3 years. Investors should keep an eye on this PSU stock under the radar.