India's power financiers gain; Macquarie keeps "outperform" despite YTD slump

REC

06/03/2025 08:50

** Power Finance Corp PWFC.NS and REC RECM.NS gain 3.1% and 3.8%, respectively

** Macquarie keeps "outperform" on both, says cos had strong return on equity, lower credit risk and valuations were inexpensive

** YTD, PFC down 9%, REC loses 17%

** Says weak investor sentiment around state-run cos behind PFC, REC's fall

** Expects PFC, REC to deliver relatively better growth

** Nifty state-run enterprises index .NIFTYPSE drops 8.4% YTD, while state-run lenders lose 9.2%

** Both stocks rated "strong buy" on avg, per data compiled by LSEG

 (Reporting by Sethuraman NR in Bengaluru)

 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))