PTC trying to diversity into roads, etc. because of loan recovery problems in the power sector.
https://www.pressreader.com/india/mint-st/20170214/281702614467524
PFS Q4 net profit jumps over two-fold to Rs. 110 cr
Hi @Mehnazfatima - Are you still invested in PFS? Any technofunda views on it at present? Its corrected nicely and hovering around good support levels.
Cheers!
Regards,
Niranjan
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yes, I am still holding quite a good quantity of PFS. To me it appears to be a good stock to hold for long term. If we look at the quarterly chart of PFS (BSE),then it does not appear to be a price breakdown but just a prolonged range bound price movement / consolidation.
I think the stock may go up significantly in the next few quarters. I am told that it is the latest addition to moneylife antelope list and that very reassuring for practitioners of slow investing like yours truly.
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Thanks! I feel so too that PFS could do well over next few years. Technically whats the levels to watch out for that can provide a support?
Niranjan
Disc: Invested
Have a look at the monthly chart of PFS, with bollinger bands and momentum indicatorâŚthe stock is under band squeeze but the momentum indicator has turned down. It may take PFS around 1-3 months for the rally to beginâŚit can even take longer. But still, its a good time and price to accumulate PFSâŚ
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In my view the results are just average, reasons being:
a. Year on year revenue growth of 11% to Rs 301 crores.
b. Outstanding loan book growth of 16.7% to Rs 10,963.
c. NIMs have shrunk significantly over the years
First two things indicate a general slowdown in lending despite dropping interest rates. It seems to me that the company is trying to project a higher outstanding loan book by including ânon-fund based commitment against sanctioned loansâ (what does that mean??), though in realty a quick reversal of their NPA calculation percentage shows the current loan book to be approx Rs 10,963 crores.
The management may be doing their best but the sector fundamentals donât seem so great any more. Renewables are going strong from a consumerâs perspective but the current per unit pricing and the regulatory issues donât inspire much confidence as a lender. Another area of concern is the net NPA amount of Rs 442.14 Crores. A significant part of it has been sitting on the books for quite some time now (Rs 405.71 Crores as on 30/6/16) and the company may have to increase the provisioning which would lead to a significant hit on the profitability. Current YoY profit growth of 17% looks good but this is a bit illusory as the provisioning has been kept low.
Disclosure: Invested since IPO
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For those of us who do not know technicals a short explanation of what the chart indicates would be very helpful. Is this chart indicating that the stock price is about to fall?
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sorry i didnât explain âŚit is bullish falling wage pattern bullish in itself breakout had happen with volume âŚmay test all time high
dis; taken position on breakout will track quarterly now
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Yes itâs a breakoutâŚthe stock was in downtrend and making lower highs and lows lowsâŚnow if and when it closes above 43, it would be a first higher highâŚitâs quite bullish now.
DiscâŚinvested
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You have not taken into account the dividend factor. Hence, today, after the book closure for dividend the breakout has shown its colour. Probably it will be back to the pavillion.
finally, after a failed breakout in March / April, PFS is again poised for an uptrend and that too just before the Q2 results. If the result is good, then I expect this stock to complete the bottom formation and continue to move upâŚthe way the short term and longb term trend indicators have turned up shows that the market is anticipating good Q2 performance.
Technical prediction failed?? Fundamentals always overtake the tech trends
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