PFC was looking overvalued in February / January 2024 with P/B > 1.5, which is much higher as compared to its 3-5-10 year Median P/B of about 0.75.
I think, such overvaluations in PSU NBFC was looking stretched hence the necessary correction seems to have happened. There is no fundamental reason as its Gross NPA are under control as reported in Q3 FY24.
Market was in a hurry to factor further improvement in its Gross NPA and hence the overvaluation was there, which seems to have been rationalized now.
It has compounded its Net Profits at 30% CAGR where as Share Price has has gone up at over 55% CAGR in past 3 years, indicating that Market has re-rated it due to Gross NPA reduction but it seems that now some rationalization is happening in its share price.
Disclosure: I was holding it from low levels but decided to book profits in Feb 2024.
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