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Home » PFC shares tumble 5% to 4-month low after weak Q1 earnings. Why Motilal Oswal still recommends Buy
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PFC shares tumble 5% to 4-month low after weak Q1 earnings. Why Motilal Oswal still recommends Buy

Business Circle TeamBy Business Circle TeamAugust 10, 2026No Comments3 Mins Read
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The shares of Energy Finance Company (PFC) dropped greater than 5% on Monday after the corporate reported a 2% year-on-year improve in consolidated web revenue to Rs 7,012 crore for the primary quarter of FY27, with Motilal Oswal Monetary Providers slashing earnings estimates.

PFC shares dropped to Rs 398 apiece on the NSE on Monday morning, the bottom degree seen by the inventory in additional than 4 months. On Friday, the corporate reported a slight decline in income from operations to Rs 28,527 crore in Q1 FY27, from Rs 28,539 crore within the corresponding quarter of the earlier monetary 12 months.

Together with the Q1 outcomes, PFC introduced an interim dividend of Rs 3.90 per share with a face worth of Rs 10 every for the continued monetary 12 months 2027. The document date to find out the eligibility of shareholders set to obtain the dividend has been fastened on August 27 (Thursday).

Additionally learn |From Titan to Lupin, Motilal Oswal analysts charge purchase, maintain or skip on 11 shares submit Q1

Motilal Oswal on PFC share worth

Motilal Oswal Monetary Providers famous that the corporate’s standalone web revenue grew practically 5% YoY to Rs 4,750 crore, beating estimates. Internet curiosity earnings (NII), nevertheless, declined 4%, lacking expectations.

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PFC indicated that the decline in lending yields throughout the quarter was consistent with expectations, reflecting decrease lending charges on each the present and incremental mortgage portfolio amid the declining rate of interest surroundings, Motilal famous. Going ahead, the corporate will proceed to calibrate its lending charges consistent with market circumstances whereas balancing progress and spreads, it added.

The home brokerage reduce its FY27 and FY28 EPS estimates for PFC by 2% and 5%, respectively, primarily to replicate decrease mortgage progress and margin contraction, partly offset by decrease credit score prices. It maintained its ‘Purchase’ ranking on PFC shares, however diminished its goal worth to Rs 500 per share. This suggests upside potential of greater than 19% from the inventory’s earlier closing worth of Rs 420 per share on NSE.

PFC share worth

PFC shares have fallen greater than 5% in every week and practically 2% in a month, however have general gained practically 10% in 2026 thus far. This comes as the corporate heads for its mega merger with REC.

In the long term, PFC shares have fallen 1.45% over one 12 months, however delivered constructive returns of 87% over three years and greater than 288% over 5 years. The corporate at the moment has a market capitalisation of practically Rs 1.32 lakh crore.

Additionally learn | SBI shares rise practically 2% after Q1 beat. Here is what Nomura, Morgan Stanley and different prime brokerages count on subsequent

(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t symbolize the views of The Financial Occasions)



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