PTC India Financial Services
ABOUT
PTC India Financial Services Ltd (PFS) is promoted by PTC India Ltd (PTC) as a special purpose investment vehicle to provide total financial services to the entities in energy value chain, which inter-alia includes investing in equity and/or extending debt to power projects in generation, transmission, distribution; fuel sources, fuel related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers and EPC contractors etc.
CURRENT MARKET PRICE - Rs. 47.90
52 WEEK HIGH - Rs. 73.15
52 WEEK LOW - Rs. 37
BOOK VALUE -26.86
EPS - 2.86
PREVIOUS QUARTER RESULTS
INVESTMENT RATIONALE
1. Stock has corrected about 40% From its 52 week high.
2. Company has been consistently giving profit growth for last 5 years.(Over 80% growth in profits)
3. PFS recently divested entire stake in Ind-Barath energy, gaining a profit of over 200crores ! If this is a sign of things to come , we are in for a great ride.
4. Solar sector is being keenly pushed for development by the Modi government. It is one of their priority sectors. This will directly impact PFS's growth . More push, will give rise to more business activity in this sector, which gives rise to need of more capital and thereby resulting in more business.
5. FII and domestic institutional investors have increased their stake in the past year. Clearly, they are seeing the potential.
6. A rate cut is very much expected in the coming months, which will lower PFS's borrowing costs and thereby improve margins and returns.
EXPECTED TARGETS
From the present levels of 42, i expect this stock to first touch approximately 90-100. This should come within the next 24 months.
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