PFC (Power Finance Corporation Ltd) vs BSE Sensex 30 Comparison

PFC

BSE Sensex 30

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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PFC

BSE Sensex 30

Difference

1Y 3Y 5Y 10Y 15Y 20Y

PFC

BSE Sensex 30

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BSE Sensex 30

PFC

IRFC

RECLTD

8593

EFN

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1Y 3Y 5Y 10Y 15Y 20Y

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Power Finance Corporation Ltd
Glance View

Economic Moat

None

Market Cap

1.3T INR

Industry

Financial Services

Power Finance Corporation Ltd. (PFC) stands as a compelling narrative of transformation and influence in India’s power sector, a sector characterized by both its challenges and potentials. Born in 1986 under the auspices of the Indian government, PFC was envisioned to be more than just a financial institution; it aimed to be the financial backbone for a burgeoning nation requiring robust infrastructure. As an established non-banking financial company (NBFC), PFC serves primarily as a financier to the power sector, providing an essential flow of capital to state electricity boards, power generation companies, and various power projects across the nation. Its main arena is the funding of power generation, transmission, and distribution projects, effectively acting as a critical enabler for India's energy security and sustainability initiatives. The revenue engine of PFC turns by orchestrating loans of significant magnitude, tailored to meet the capital-intensive needs of the power sector. Its business model thrives on the spread between the interest costs at which it borrows funds from the market and the interest rates it charges to its clients. This spread is meticulously managed, given the volatility of interest rate environments and the credit risk inherent in the sector. PFC’s extensive portfolio consists not only of conventional energy projects but also increasingly of renewable energy endeavours, aligning with global and domestic shifts towards sustainable energy solutions. In this dual capacity, PFC doesn’t merely make money; instead, it crafts a narrative of development by empowering India’s ambitious energy landscape, facilitating a transition into a future that balances growth with environmental stewardship.

View PFC Analysis

PFC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

IN		Indian Railway Finance Corp Ltd NSE:IRFC	Add
IN		REC Limited NSE:RECLTD	Add
JP		Shinkin Central Bank TSE:8421	Add
JP		Mitsubishi HC Capital Inc TSE:8593	Add
CA		Element Fleet Management Corp TSX:EFN	Add
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Add
TW		Chailease Holding Company Ltd TWSE:5871	Add
IN		Housing and Urban Development Corporation Ltd NSE:HUDCO	Add
JP		Tokyo Century Corp TSE:8439	Add
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Add

IN		Indian Railway Finance Corp Ltd NSE:IRFC	Select
IN		REC Limited NSE:RECLTD	Select
JP		Shinkin Central Bank TSE:8421	Select
JP		Mitsubishi HC Capital Inc TSE:8593	Select
CA		Element Fleet Management Corp TSX:EFN	Select
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Select
TW		Chailease Holding Company Ltd TWSE:5871	Select
IN		Housing and Urban Development Corporation Ltd NSE:HUDCO	Select
JP		Tokyo Century Corp TSE:8439	Select
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Select

IN		Indian Railway Finance Corp Ltd NSE:IRFC	Add
IN		REC Limited NSE:RECLTD	Add
JP		Shinkin Central Bank TSE:8421	Add
JP		Mitsubishi HC Capital Inc TSE:8593	Add
CA		Element Fleet Management Corp TSX:EFN	Add
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Add
TW		Chailease Holding Company Ltd TWSE:5871	Add
IN		Housing and Urban Development Corporation Ltd NSE:HUDCO	Add
JP		Tokyo Century Corp TSE:8439	Add
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Add

MY	A	Axteria Group Bhd KLSE:AXTERIA	Add
US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
LU		Tenaris SA MIL:TEN	Add

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PFC

vs

BSE Sensex 30

Stocks Performance
PFC vs BSE Sensex 30

Performance Gap
PFC vs BSE Sensex 30

Performance By Year
PFC vs BSE Sensex 30

Competitors Performance
Power Finance Corporation Ltd vs Peers

Power Finance Corporation Ltd
Glance View

Company

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PFC vs BSE Sensex 30

Stocks Performance PFC vs BSE Sensex 30

Performance Gap PFC vs BSE Sensex 30

Performance By Year PFC vs BSE Sensex 30

Competitors Performance Power Finance Corporation Ltd vs Peers

Power Finance Corporation Ltd Glance View

Company

Help

Tools

Stocks

PFC

vs

BSE Sensex 30

Stocks Performance
PFC vs BSE Sensex 30

Performance Gap
PFC vs BSE Sensex 30

Performance By Year
PFC vs BSE Sensex 30

Competitors Performance
Power Finance Corporation Ltd vs Peers

Power Finance Corporation Ltd
Glance View