PFC, REC shares rally up to 3% after Emkay initiates coverage with up to 31% upside
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Shares of PSU power financiers REC Ltd and PFC rallied 2.8% on Friday after domestic brokerage firm Emkay Global initiated coverage on the two stocks saying that the controlled upcycle in power capex and lending is here to stay, and both players provide the optimal path to ride it. PFC shares rallied 2.8% to Rs 472.40 on BSE while REC share price also rose 2.8% to Rs 533.55 on the stock exchange. "We initiate coverage on PFC and REC with BUY and Dec-25E TP of Rs 600 and Rs 650 (31% and 25% upside, respectively), valuing REC at FY26E P/BV of 1.9x, and PFC at FY26E standalone P/BV of 1.5x and 25% holding company discount on its REC stake," Emkay said in a report. Citing sustained double-digit loan growth and stable margins, it said improving asset quality supports robust earnings visibility for companies in the sector. "Despite offering consistent dividend payouts and maintaining strong return ratios, we believe sector player...