ATH Breakout: This Multibagger Large-Cap is Not Slowing Down!

  • Stock Market Analysis
  • Editors Pick

One of the counters that has been creating serious wealth for investors for the last two years is Power Finance (NS: PWFC ) Corporation Limited. It is a specialized finance company that primarily caters to the power sector and has a market capitalization of INR 1,54,807 crore. The entire power sector is doing great for investors and yesterday India’s peak power demand hit the season’s new high of 236.59 GW.

PFC is in a sweet spot as it provides financial assitance to power companies and it is racking up good profits. In FY24, the company posted a record high revenue and profit of INR 91,174.87 crore and INR 19,761.16 crore, respectively. This translates into net income margins of 21.67%, the highest since FY16.

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The easiest way to know whether the stock is good for the portfolio or not, investors can simply look at the financial health score of it. If this score is 2 or less, they can make it a point to steer clear of it. This is one of my favorite metrics to gauge the viability of any stocks getting entry in my portfolio.

Image Description: Daily chart of PFC with volume bars at the bottom

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Today, the stock jumped 5.22% to INR 491.65 which is the highest closing in the history of the stock. Earlier, the stock faced some hurdle around INR 480 a couple of times, but today’s sharp rally with a weekly closing above this resistance is painting a bullish picture for the counter.

The volume backing today’s move was a hefty 33.46 million shares on the NSE, which is 192% of the 10-day average volume of 17.37 million shares. Despite a 269% rally in the last one year, the stock is still garnering investors’ interest and that too at an all-time high level.

Looking at the brief consolidation which had been taking place during the last 4 months, the stock is all set to rally to the next level of INR 610 in the future. As this is a large-cap counter, investors should understand that the counter might take its own sweet time to reach there but the overall bull run is clearly intact.

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Also Read: A Guide to Finding Undervalued Stocks With HIGH Accuracy

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  • Rajinder Choudhuri @Rajinder Choudhuri
    I think it has PE of less than 10
    Like 1
  • sweety jagota @sweety jagota
    not a proper breakout
    Like 0
  • vineet sehgal @vineet sehgal
    saata chal raha hai.. election ke baad dekhe ge
    Like 0

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