Multibagger in just 1 year: This infrastructure finance company receives incorporation of new special purpose vehicles (SPV’s) project from Ministry of Power!

The stock is up 102 per cent in just 1 year and over 130 per cent in 3 years.

PFCL announced that Bikaner III Neemrana II Transmission Limited for the development of a transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-1: Bikaner Complex) Part-C, a 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) PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited) has been nominated as the 'Bid Process Coordinator' for selection of developer through tariff based competitive bidding for the Independent Transmission Projects (ITPs) by Ministry of Power, Gal. As per the provisions of tariff-based competitive bidding Guidelines issued by the Ministry of Power, the BPC has to prepare the project profile and initiate the process of land acquisition and forest clearance, if required.

For these activities, a Special Purpose Vehicle (SPV) is required to be incorporated which will take up various preparatory activities of the transmission projects e.g., survey and preparation of the report, initialization of the process of acquisition of land and also initiate the process of seeking forest clearance, if required. 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 52,000 crore with a 1-year CAGR of 98 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 0.31 per cent to Rs 197.20 per share from its previous closing of Rs 196.60 with an intraday high of Rs 198.40 and an intraday low of Rs 194.30.

The stock has a PE of 4.50x and a ROE of 21 per cent. The stock gave multibagger returns of 104 per cent from its 52-week low of Rs 97.15. The stock is up 102 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.