UBS recommends PFC and REC shares as potential multibaggers due to renewable energy growth in India.

UBS, a foreign brokerage firm, has initiated coverage on PFC and REC, state-owned power sector financiers, recommending their shares as potential multibaggers. Both companies are seen as financiers of high growth renewable power generation and infrastructure, with nearly 20% of their total loan book currently in renewables and infrastructure, expected to reach 40% by FY29. UBS has given both stocks a 'Buy' rating and target prices of Rs 670 for PFC and Rs 720 for REC. The firm anticipates robust growth for PFC and REC due to India's energy transition-related capex and participation in state-backed infrastructure projects.