PFC share price continued with its recovery on Thursday as the PSU counter closed 2.26 percent higher. PFC stock touched intraday high at Rs 408.8 and closed at Rs 404.70. The stock has witnessed strong recovery from 52-week low touched recently at Rs 351.70. The yearly low will now act as a strong support on technical charts for PFC. TopNews Team has reviewed technical levels for PFC for traders and short term investors.

Stock Performance Overview

PFC’s stock has exhibited notable price fluctuations over the last year, moving within a 52-week range of Rs 351.70 to Rs 580.00. This price movement reflects market volatility as well as the company's adaptive strategies. In its latest trading session, the stock:

CLSA Upgrades Power Finance Corporation (PFC) to ‘High Perform’

One of the primary factors driving CLSA’s upgraded rating is PFC’s strong pipeline of undisbursed loans.

59% of sanctioned loans over the past 2.75 years remain undisbursed, providing a solid base for double-digit loan growth in FY26-27.
With fresh disbursals expected to accelerate, CLSA anticipates mid-teen loan growth for PFC, reinforcing the company’s financial resilience.

The stock is trading at just 0.76 times its FY27 price-to-book ratio, making it a value buy for long-term investors.

Both CLSA and Macquarie maintain a positive outlook for Power Finance Corporation, citing robust loan growth, strong financial metrics, and reduced credit risks.

With a revised target price of Rs 525, CLSA sees significant upside potential in PFC, while Macquarie’s reaffirmation of an ‘Outperform’ rating underscores its long-term strength.

Macquarie Reaffirms ‘Outperform’ Rating for PFC
In a separate report, Macquarie also reaffirmed its bullish stance on PFC, maintaining an ‘Outperform’ rating despite recent stock price fluctuations. Macquarie noted that the recent decline in PSU stock prices was largely driven by weak sentiment rather than any fundamental concerns. The brokerage dismissed fears over:

A decline in loan growth
Increased competition in the power financing sector
Softening demand for power
Instead, Macquarie highlighted that power demand is now gradually picking up, acting as a key growth catalyst for PFC.
Despite short-term volatility, Macquarie emphasized that PFC’s long-term growth trajectory remains intact due to:

Lower credit risk associated with its well-structured loan portfolio.
A strong ROE, which continues to drive shareholder value.
Attractive valuations, making PFC an appealing investment for institutional and retail investors alike.
The Macquarie report supports CLSA’s view that PFC remains undervalued, given its low-risk loan book and strategic role in power sector financing.

Analyst Perspectives

Market analysts maintain a bullish outlook on PFC, highlighting its strong financial position and growth prospects. Recent forecasts suggest a one-year price target ranging between Rs 475.00 and Rs 660.00, with an average estimate around Rs 561.17. Another set of projections places the stock’s expected value between Rs 479.75 and Rs 693.00, reinforcing positive sentiment toward its long-term performance.

Technical Analysis

Candlestick Patterns

Technical indicators show the formation of a bullish engulfing pattern on the daily candlestick chart, indicating a potential upward momentum. This pattern suggests that investor sentiment may be shifting toward a more optimistic outlook for the stock.

Fibonacci Retracement Levels

Applying Fibonacci retracement levels from the 52-week low to the high provides key insights into potential support zones:

These levels act as potential support zones in the event of a price correction.

Support and Resistance Levels

Identifying key support and resistance levels is crucial for traders looking to make informed entry and exit decisions:

• Immediate Support: Rs 400.00
• Primary Resistance: Rs 420.00

A break above Rs 420.00 could indicate further bullish momentum, while a dip below Rs 400.00 may trigger a bearish trend.