The Allahabad high court’s decision to deny relief to power companies facing debt servicing problems may have stoked fears of a fresh bout of write-offs for the banking sector. But the decision has triggered a rally in the shares of Power Finance Corp. Ltd (PFC), Rural Electrification Corp. Ltd (REC) and PTC India Financial Services Ltd. The stocks gained 6-8% over the last four days.
PTC India Financial Services, the smallest of the lot, continued the gains on Thursday, rising 6%. The company’s results for the June quarter showed sequential improvement in provisions and earnings. Compared to a loss in the March quarter, it reported a profit of about ₹55.9 crore.
PFC and REC are yet to release their financial results for the June quarter. But low valuations—all three are trading at a huge discount to their book value—and hope that the worst may be coming to an end are bringing these stocks back in the spotlight. Read More
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