
Finance
Size: It is among the top 200 market size companies of india.
Profitability: Very strong Profitability. One year profit margin are 29%.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Pays a strong dividend yield of 5.12%.
Growth: Good revenue growth. With 48.1% growth over past three years, the company is going strong.
Past Returns: Outperforming stock! In past three years, the stock has provided 59.4% return compared to 11.2% by NIFTY 50.
Technicals: SharesGuru indicator is Bearish.
Momentum: Stock has a weak negative price momentum.
Smart Money: Smart money looks to be reducing their stake in the stock.
Valuation | |
|---|---|
| Market Cap | 98.22 kCr |
| Price/Earnings (Trailing) | 5.83 |
| Price/Sales (Trailing) | 1.69 |
| EV/EBITDA | 1.73 |
| Price/Free Cashflow | -2.51 |
| MarketCap/EBT | 4.58 |
| Enterprise Value | 97.99 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 58.17 kCr |
| Rev. Growth (Yr) | 13.2% |
| Earnings (TTM) | 16.89 kCr |
| Earnings Growth (Yr) | 29.1% |
Profitability | |
|---|---|
| Operating Margin | 37% |
| EBT Margin | 37% |
| Return on Equity | 21.55% |
| Return on Assets | 2.75% |
| Free Cashflow Yield | -39.89% |
Growth & Returns | |
|---|---|
| Price Change 1W | -1.9% |
| Price Change 1M | 0.50% |
| Price Change 6M | -7.3% |
| Price Change 1Y | -31.5% |
| 3Y Cumulative Return | 59.4% |
| 5Y Cumulative Return | 38.4% |
| 7Y Cumulative Return | 25.4% |
| 10Y Cumulative Return | 14.2% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -1.27 kCr |
| Cash Flow from Operations (TTM) | -39.1 kCr |
| Cash Flow from Financing (TTM) | 40.03 kCr |
| Cash & Equivalents | 233.57 Cr |
| Free Cash Flow (TTM) | -39.18 kCr |
| Free Cash Flow/Share (TTM) | -148.8 |
Balance Sheet | |
|---|---|
| Total Assets | 6.15 LCr |
| Total Liabilities | 5.36 LCr |
| Shareholder Equity | 78.38 kCr |
| Net PPE | 625.99 Cr |
| Inventory | 0.00 |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.00 |
| Debt/Equity | 0.00 |
| Interest Coverage | -0.39 |
| Interest/Cashflow Ops | -0.12 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 19.1 |
| Dividend Yield | 5.12% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Updated May 29, 2025
Shares of REC Ltd. declined 1.5% to ₹386.6, reflecting the broader market trends.
Despite a strong financial report, the stock still faced a downturn, highlighting market volatility.
Market fluctuations have affected REC Ltd.’s share price, despite positive growth indicators.
Brokerage CLSA has maintained a 'high conviction outperform' rating for REC Ltd., projecting a 35% upside potential.
REC Ltd. reported a 5.5% increase in consolidated net profit for Q4, reaching ₹4,236 crore.
The company has shown robust asset quality with no slippages over the past three years, and analysts have a unanimous 'buy' rating on the stock.
Change in Management • 07 Oct 2025 Intimation regarding change in Senior Management. |
Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018 • 06 Oct 2025 Certificate under Regulation 74(5) of SEBI (DP) Regulations, 2018. |
Change in Directorate • 03 Oct 2025 Intimation regarding change in Board of Directors of REC Limited. |
General • 30 Sept 2025 Intimation of incorporation of subsidiary companies. |
General • 29 Sept 2025 Intimation of sale and transfer of project specific SPV/ Subsidiary. |
General • 25 Sept 2025 Intimation of incorporation of subsidiary company. |
General • 24 Sept 2025 Intimation of sale and transfer of project specific SPV/ Subsidiary. |
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Summary of REC's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated:
Outlook by Management:
Growth Targets:
Financial Performance:
Sectoral Focus:
Key Initiatives:
Risk Management:
Funding & Margins:
Major Highlights:
Last updated:
What were the major questions asked and their answers?
Question 1: How will REC manage NPA risks while diversifying into non-power infrastructure sectors?
REC emphasized cautious diversification, targeting state-guaranteed projects (e.g., metro, expressways) and strengthening manpower/expertise. Due diligence ensures cash flow-backed projects with payment security. No new NPAs added in the last 8 quarters, and resolution of stressed assets (e.g., Dans Energy, Meenakshi) is prioritized.
Question 2: Can REC achieve Rs 12"“13 lakh crore AUM by 2030 instead of the Rs 10 lakh crore target?
REC expressed confidence in surpassing the Rs 10 lakh crore AUM target by 2028"“29, citing strong growth (20% YoY), renewable energy MOUs (Rs 2.86 lakh crore signed), and diversification into infrastructure. Disbursements are expected to accelerate with sanctioned projects in renewables, thermal power, and distribution reforms.
Question 3: What is REC's Q3 performance vs. Q2, and what is the dividend policy?
Q3 PAT rose to Rs 3,269 crore (vs. Rs 3,100 crore in Q2 after adjusting for one-time reversals). Return on assets is ~2.8%. Dividend policy aligns with DIPAM guidelines: 30% of PAT or 5% of net worth (whichever is higher). Interim and final dividends will be declared.
Question 4: What is the RBPF line item, and how does it relate to the LPS scheme?
RBPF (Revolving Bill Payment Facility) is a short-term loan for current dues (post-June 2022) under the LPS scheme. LPS addresses legacy dues, while RBPF ensures timely payments for ongoing power purchases. RBPF is revolver-style, repayable within a year, with no overlap in tenor or purpose with LPS.
Question 5: What were recoveries from resolved NPAs like Meenakshi Energy and Dans Energy?
Dans Energy: 113% recovery (Rs 415 crore vs. Rs 367 crore exposure). Meenakshi Energy: 30% recovery (Rs 213 crore vs. Rs 710 crore exposure, 80% provisioned). Classic Global: 86% recovery. TRN Energy, Bhadreshwar, and Lanco Amarkantak resolutions are targeted by FY24.
Question 6: How will RBI's draft guidelines on NBFC exposure norms impact REC?
REC stated compliance with exposure limits (30% for single borrower, 50% for group). Government-guaranteed loans are excluded from exposure calculations. Current portfolio aligns with RBI norms, and no adjustments are needed.
Question 7: What is REC's FY25 loan growth outlook, and which segments will drive disbursements?
FY25 AUM is projected at Rs 6 lakh crore (~17% growth). Renewables (sanctioned Rs 1.75 lakh crore), thermal power, RDSS-linked distribution projects, and non-power infrastructure (roads, metros) will drive disbursements. Rooftop solar financing (RESCO model) may add Rs 15,000"“20,000 crore.
Question 8: How will REC fund the rooftop solar mission, and what is the revenue model?
REC will finance CPSEs implementing rooftop solar under the RESCO model (not retail). Target: 40 GW by 2026. Fees (0.4"“0.5% of project cost) and loans to vendors/aggregators (Rs 15,000"“20,000 crore) will contribute. Subsidy (20"“40%) is managed by MNRE, with state focus cities prioritized.
Question 9: How does REC ensure Discom loan safety (e.g., Tangedco's Rs 40,000 crore losses)?
Loans to Discoms are secured via state guarantees, ARR-backed cash flows, and RDSS reforms. Tamil Nadu's Tangedco receives annual state support (loss coverage), tariff hikes, and subsidy adherence. LPS/RBPF disbursements are government-guaranteed, minimizing risk.
Question 10: What explains Q3's lower headline profit despite improved asset quality?
Q3 included Rs 56 crore in ECL provisions (vs. Q2's Rs 670 crore reversal). Improved asset quality (Net NPA 0.82% vs. 0.96% in Q2) and resolutions led to write-backs. Higher reversals are expected in Q4 from large NPA resolutions (e.g., TRN Energy).
Understand REC ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| POWER FINANCE CORPORATION LTD | 52.63% |
| NPS TRUST- A/C LIC PENSION FUND SCHEME - STATE GOVT | 1.39% |
| NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA GROWTH FUND | 1.37% |
| ICICI PRUDENTIAL EQUITY ARBITRAGE FUND | 1.19% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of REC against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| IRFC | Indian Railway Finance Corp | 1.65 LCr | 27.31 kCr | +0.20% | -16.50% | 24.75 | 6.05 | - | - |
| PFC | Power Finance Corp | 1.33 LCr | 1.1 LCr | +1.50% | -14.40% | 5.48 | 1.21 | - | - |
| HUDCO | Housing &Urban Development Corp | 46.53 kCr | 11.1 kCr | +7.40% | +3.20% | 16.72 | 4.19 | - | - |
| IREDA | Indian Renewable Energy Development Agency | 42.45 kCr | 7.2 kCr | +2.40% | -35.30% | 26.05 | 5.89 | - | - |
| IFCI | IFCI | 15.58 kCr | 2.1 kCr | +8.00% | -5.90% | 47.39 | 7.4 | - | - |
| SBILIFE | SBI Life Insurance Co. | - | - | -1.40% | +4.20% | - | - | - | - |
Comprehensive comparison against sector averages
RECLTD metrics compared to Finance
| Category | RECLTD | Finance |
|---|---|---|
| PE | 5.83 | 17.03 |
| PS | 1.69 | 3.22 |
| Growth | 17.3 % | 8.1 % |
REC is a prominent financial institution in India, known by its stock ticker RECLTD and boasting a market capitalization of Rs. 114,031.6 Crores. Established in 1969 and based in Gurugram, REC Limited, formerly known as the Rural Electrification Corporation Limited, was rebranded in October 2018.
The company's primary focus is on providing financing services tailored for the power generation, transmission, and distribution sectors. Its offerings include:
Additionally, REC plays a significant role as a nodal agency for various government electrification schemes, such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana and the Deen Dayal Upadhyaya Gram Jyoti Yojana. It also serves as a coordinator for tariff-based competitive bidding processes regarding transmission service providers.
With a strong revenue stream of Rs. 53,792.3 Crores over the past year, REC showcases a profitability of Rs. 15,653.4 Crores in the last four quarters and highlights a remarkable revenue growth of 38% over the past three years.
In terms of investor relations, REC distributes dividends, offering a yield of 5.75% per year, and returned Rs. 24.9 in dividends per share over the last year. The company primarily serves central and state government power utilities, along with private sector counterparts, reinforcing its position as a leader in the Indian financial landscape. REC Limited is a subsidiary of the Power Finance Corporation Limited.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
RECLTD vs Finance (2021 - 2025)