Power Finance Corporation stock soars 4%; Motilal Oswal sees more upside Power Finance Corporation’s (PFC) stock price surged 4% to ₹434.85 on the BSE on Wednesday, driven by heavy trading volumes. The stock approached its 52-week high of ₹443.95, which it last touched in April 2025. Over the past three months, PFC outperformed the broader market, rising 28% compared to a 9.4% decline in the BSE Sensex. The rally follows the company’s board approval to raise ₹1.6 trillion in FY27 through bonds, term loans, and commercial paper, excluding funds from the Extra Budgetary Resource (EBR). The merger of PFC and Renewable Energy Corporation (REC) is a key catalyst for the stock’s performance. The Union Budget 2026 proposed restructuring PFC and REC to create a unified entity, aiming to enhance efficiency and scale within public sector non-banking finance companies (NBFCs). PFC acquired a 52.63% stake in REC in 2019, making it a subsidiary. The merger is expected to consolidate overlapping functions, reduce operational costs, and strengthen bargaining power with lenders. The combined entity would become India’s largest power sector financier, with improved balance sheet strength and capital efficiency to support large-scale funding for the power sector. The merged entity is positioned to address India’s growing energy needs, particularly as the country advances toward its Viksit Bharat 2047 goals. Future investments will focus on renewable energy and emerging technologies like green hydrogen, carbon capture and storage (CCUS), small modular nuclear reactors, and energy storage solutions. The combined entity’s technical expertise and sector knowledge are expected to position it to capitalize on these opportunities effectively.#motilal_oswal #union_budget_2026 #power_finance_corporation #renewable_energy_corporation #viksit_bharat_2047
