Key Events This Week
2 Feb: Stock opens at Rs.385.60 with 1.65% gain despite Sensex decline
3 Feb: Continued gains to Rs.392.55 amid Sensex rally
4 Feb: Intraday high of Rs.406.55 and Mojo upgrade to Hold
5 Feb: Q3 FY26 results reveal steady earnings growth with margin pressure
6 Feb: Week closes at Rs.419.20, up 1.01% on the day
2 February 2026: Positive Start Amid Broader Market Weakness
Power Finance Corporation Ltd began the week on a strong footing, closing at Rs.385.60, up Rs.6.25 or 1.65% despite the Sensex falling 1.03% to 35,814.09. The stock’s outperformance was notable given the broader market weakness, signalling early buying interest. Volume of 348,345 shares indicated healthy participation, setting a positive tone for the days ahead.
3 February 2026: Gains Continue with Market Rally
On 3 February, PFC extended its gains, rising 1.80% to close at Rs.392.55, supported by a Sensex rally of 2.63% to 36,755.96. The stock’s volume increased to 372,918 shares, reflecting sustained investor interest. This day’s performance aligned with improving market sentiment, reinforcing the stock’s upward trajectory.
4 February 2026: Intraday High and Mojo Upgrade Boost Confidence
4 February marked a pivotal day for PFC as it hit an intraday high of Rs.406.55, a 3.1% surge from the previous close, before settling at Rs.414.45 (+5.58%). This strong intraday performance outpaced the Sensex’s modest 0.37% gain. The stock’s rise was supported by sustained buying interest and technical strength, trading above all key moving averages including 5-day, 20-day, 50-day, 100-day, and 200-day averages.
Simultaneously, MarketsMOJO upgraded PFC’s rating from ‘Sell’ to ‘Hold’ citing improved technical indicators and fair valuation metrics. The upgrade reflected a shift in technical trend from mildly bearish to sideways, with weekly MACD and KST oscillators turning mildly bullish. Valuation metrics also improved, with a price-to-earnings ratio of 5.23, significantly lower than peers Bajaj Finance and Bajaj Finserv, indicating attractive pricing.
Despite flat quarterly results, the company’s longer-term financial trends remain positive, with a 16.8% increase in profits over the past year and a dividend yield of 3.64%. Institutional investors hold a substantial 33.81% stake, underscoring confidence from sophisticated market participants.
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5 February 2026: Q3 FY26 Results Show Steady Earnings Amid Margin Pressure
On 5 February, PFC reported its Q3 FY26 financial results, revealing steady earnings growth but with some margin pressure. Profit after tax declined 5.5% to ₹5,743.25 crore compared to the previous four-quarter average, indicating some near-term challenges. Despite this, the company’s longer-term profit trajectory remains positive, with a 16.8% increase over the past year.
The stock closed marginally higher at Rs.415.00 (+0.13%) on moderate volume of 575,420 shares, while the Sensex declined 0.53%. This divergence highlighted the stock’s relative resilience amid mixed market conditions and earnings concerns.
6 February 2026: Week Closes Strong with Continued Momentum
Power Finance Corporation Ltd concluded the week at Rs.419.20, up 1.01% on the day, supported by a volume of 686,041 shares. The Sensex closed slightly higher by 0.10% at 36,730.20. The stock’s weekly gain of 10.50% far outpaced the Sensex’s 1.51%, underscoring strong investor appetite and positive sentiment despite broader market volatility.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.385.60 | +1.65% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.392.55 | +1.80% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.414.45 | +5.58% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.415.00 | +0.13% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.419.20 | +1.01% | 36,730.20 | +0.10% |
Key Takeaways
Strong Weekly Outperformance: PFC’s 10.50% weekly gain significantly outpaced the Sensex’s 1.51%, reflecting robust investor demand and positive momentum.
Technical Strength and Rating Upgrade: The upgrade from ‘Sell’ to ‘Hold’ by MarketsMOJO on 4 February was driven by improved technical indicators and fair valuation, signalling a more balanced outlook.
Valuation and Dividend Appeal: With a low PE ratio of 5.23 and a dividend yield of 3.64%, PFC offers attractive valuation and income characteristics relative to peers.
Steady Financials Amid Margin Pressure: Q3 FY26 results showed steady earnings growth but some margin pressure, highlighting the need to monitor upcoming quarters for margin recovery.
Mixed Technical Signals: Weekly indicators suggest mild bullishness, but monthly metrics remain cautiously bearish, indicating a consolidation phase with potential for further gains if resistance levels are breached.
Conclusion
Power Finance Corporation Ltd’s strong 10.50% weekly gain amid a modest Sensex rise underscores its resilience and positive momentum in early February 2026. The combination of a technical upgrade, attractive valuation, and steady earnings growth despite margin pressures provides a nuanced picture of the stock’s current standing. While short-term technical signals are encouraging, mixed monthly indicators counsel caution. Investors should continue to monitor quarterly results and technical developments to assess whether PFC can sustain its upward trajectory in the coming weeks.
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