EQ: Power Finance Corporation (PFC) – Long term wealth creator or value trap?

I’ve been studying **Power Finance Corporation (PFC)** and it looks almost *too good to be true*, so I want to sanity-check it with this community. PFC is basically the **banker to India’s power sector** — it finances generation, transmission, renewables, state DISCOMs, etc. It is also a **Maharatna PSU** and the parent of **REC**. Here is what stands out to me: • ROE consistently \~18–22% • Net Interest Margin \~3.5%+ • GNPA down sharply in recent years • Loan book growing with India’s power capex • Dividend yield \~10–12% (!!) • P/E \~5–6 while private banks trade at 15–25 At current prices, it feels like you are getting a **profitable monopoly-like lender** at a junk valuation. But markets don’t give this kind of gift without risk. The usual concerns I see are: • PSU governance & government interference • Political risk with state DISCOMs • One bad power cycle can blow up NPAs • Market hates PSU financials My thesis: India is in a **multi-decade power expansion** (renewables, transmission, EVs, data centres, industrial growth). PFC sits right at the **money pipe** of that growth. Even if growth slows, the **dividend alone** recovers a big part of capital over time. I’m considering holding this for **10–15 years as a compounding dividend machine**. What am I missing? Is PFC a hidden gem or a value trap waiting to explode? Would love to hear from anyone tracking PSU financials, power sector, or holding PFC / REC.