PFC Trading Below Book Value! Is This The Best Dividend PSU Bet Now?

Power Finance Corporation (PFC), a Navratna PSU, is drawing investor attention as it trades below its book value of ₹385, currently around ₹351, offering an attractive dividend yield of 4.5%. Supported by strong tailwinds in the power sector and robust profitability, PFC has demonstrated impressive profit CAGR of 14% over 10 years and 26% over the last five years. While timing a reversal remains uncertain, experts suggest this may be a compelling opportunity for staggered accumulation, especially with many PSU companies expected to announce interim dividends in December–January, aligning with government budgeting requirements. Analysts highlight that value opportunities are emerging across the PSU pack, focusing on high dividend yield and beaten-down stocks well off their highs - potentially offering favorable risk-reward setups.