Finance
Valuation | |
|---|---|
| Market Cap | 95.84 kCr |
| Price/Earnings (Trailing) | 5.56 |
| Price/Sales (Trailing) | 1.61 |
| EV/EBITDA | 1.58 |
| Price/Free Cashflow | -2.54 |
| MarketCap/EBT | 4.38 |
| Enterprise Value | 90.73 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 1.4% |
| Price Change 1M | 1.9% |
| Price Change 6M | -7.9% |
| Price Change 1Y | -15.1% |
| 3Y Cumulative Return | 46.8% |
| 5Y Cumulative Return | 28.6% |
| 7Y Cumulative Return | 21.6% |
| 10Y Cumulative Return | 17.5% |
| Revenue (TTM) |
| 59.62 kCr |
| Rev. Growth (Yr) | 10.6% |
| Earnings (TTM) | 17.27 kCr |
| Earnings Growth (Yr) | 9.3% |
Profitability | |
|---|---|
| Operating Margin | 37% |
| EBT Margin | 37% |
| Return on Equity | 20.68% |
| Return on Assets | 2.7% |
| Free Cashflow Yield | -39.41% |
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 | 5.1 kCr |
| Free Cash Flow (TTM) | -39.18 kCr |
| Free Cash Flow/Share (TTM) | -148.8 |
Balance Sheet | |
|---|---|
| Total Assets | 6.4 LCr |
| Total Liabilities | 5.57 LCr |
| Shareholder Equity | 83.48 kCr |
| Net PPE | 615.61 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) | 19.7 |
| Dividend Yield | 5.41% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
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.
Past Returns: Outperforming stock! In past three years, the stock has provided 46.8% return compared to 12.7% by NIFTY 50.
Growth: Good revenue growth. With 52.1% growth over past three years, the company is going strong.
Technicals: Bullish SharesGuru indicator.
Dividend: Pays a strong dividend yield of 5.41%.
Insider Trading: Significant insider selling noticed recently.
Smart Money: Smart money is losing interest in the stock.
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.
Past Returns: Outperforming stock! In past three years, the stock has provided 46.8% return compared to 12.7% by NIFTY 50.
Growth: Good revenue growth. With 52.1% growth over past three years, the company is going strong.
Technicals: Bullish SharesGuru indicator.
Dividend: Pays a strong dividend yield of 5.41%.
Insider Trading: Significant insider selling noticed recently.
Smart Money: Smart money is losing interest in the stock.
Investor Care | |
|---|---|
| Dividend Yield | 5.41% |
| Dividend/Share (TTM) | 19.7 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 65.45 |
Financial Health | |
|---|---|
| Debt/Equity | 0.00 |
Technical Indicators | |
|---|---|
| RSI (14d) | 36.82 |
| RSI (5d) | 40.44 |
| RSI (21d) | 53.15 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal | Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
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.
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.
Outlook by Management:
Growth Targets:
Financial Performance:
Sectoral Focus:
Key Initiatives:
Risk Management:
Funding & Margins:
Major Highlights:
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% |
| ICICI PRUDENTIAL EQUITY ARBITRAGE FUND | 2.08% |
| NPS TRUST- A/C LIC PENSION FUND SCHEME - STATE GOVT | 1.59% |
Distribution across major stakeholders
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 | 1.5 LCr | 26.73 kCr | -14.20% | -16.40% | 21.34 | 5.6 | - | - |
| PFC | Power Finance Corp | 1.19 LCr | 1.14 LCr |
Comprehensive comparison against sector averages
RECLTD metrics compared to Finance
| Category | RECLTD | Finance |
|---|---|---|
| PE | 5.56 | 17.20 |
| PS | 1.61 | 3.30 |
| Growth | 15.6 % | 9.9 % |
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 - 2026)
Brokerage CLSA has maintained a 'high conviction outperform' rating for REC Ltd., projecting a 35% upside potential.
General • 20 Jan 2026 Intimation of strike-off from the Register of Companies of a project specific SPV/ Subsidiary. |
General • 19 Jan 2026 Board comments on fine levied by the Exchanges. |
General • 09 Jan 2026 Intimation of sale and transfer of project specific SPVs/ Subsidiaries. |
General • 08 Jan 2026 Intimation of achievement of ''Excellent" rating by REC in MOU Performance for the financial year 2024-25. |
General • 07 Jan 2026 Intimation of incorporation of subsidiary company. |
Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018 • 06 Jan 2026 Certificate under Regulation 74(5) of SEBI (DP) Regulations. |
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
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).
Distribution across major institutional holders
| -7.20% |
| 4.82 |
| 1.05 |
| - |
| - |
| HUDCO | Housing &Urban Development Corp | 39.66 kCr | 11.82 kCr | -10.60% | -5.50% | 14.14 | 3.36 | - | - |
| IREDA | Indian Renewable Energy Development Agency | 36.21 kCr | 8.07 kCr | -8.60% | -31.00% | 18.84 | 4.49 | - | - |
| IFCI | IFCI | 15.15 kCr | 2.07 kCr | +5.20% | +8.50% | 39.31 | 7.32 | - | - |
| SBILIFE | SBI Life Insurance Co. | - | - | +1.00% | +43.10% | - | - | - | - |
| 2.2% |
| 9,131 |
| 8,934 |
| 8,768 |
| 8,837 |
| 8,506 |
| 8,020 |
| Depreciation and Amortization | -0.7% | 6.66 | 6.7 | 6.49 | 6.31 | 5.98 | 5.91 |
| Fees and commission expenses | -98.3% | 1.15 | 10 | 0.86 | 3.66 | 4.41 | 4.73 |
| Impairment on financial instruments | 122.8% | 140 | -609.79 | 776 | -83.4 | -138.24 | 467 |
| Other expenses | 19.4% | 210 | 176 | 221 | 288 | 166 | 183 |
| Profit Before exceptional items and Tax | -2.1% | 5,549 | 5,666 | 5,490 | 5,181 | 5,097 | 4,349 |
| Total profit before tax | -2.1% | 5,549 | 5,666 | 5,490 | 5,181 | 5,097 | 4,349 |
| Current tax | 11.8% | 1,164 | 1,041 | 1,040 | 1,045 | 1,059 | 956 |
| Deferred tax | -119.7% | -30.18 | 159 | 140 | 60 | 1.01 | -66.7 |
| Tax expense | -5.6% | 1,134 | 1,201 | 1,180 | 1,105 | 1,060 | 889 |
| Total profit (loss) for period | -1.1% | 4,415 | 4,466 | 4,310 | 4,076 | 4,038 | 3,460 |
| Other comp. income net of taxes | 127.1% | 669 | -2,464.16 | -1,050.14 | 703 | -1,251.9 | 83 |
| Total Comprehensive Income | 154% | 5,083 | 2,002 | 3,260 | 4,779 | 2,786 | 3,543 |
| Earnings Per Share, Basic | -1.2% | 16.77 | 16.96 | 16.24 | 15.48 | 15.33 | 13.14 |
| Earnings Per Share, Diluted | -1.2% | 16.77 | 16.96 | 16.24 | 15.48 | 15.33 | 13.14 |
| - |
| - |
| 68 |
| - |
| - |
| - |
| - |
| Other income | - | 68 | 0 | 45 | 98 | 23 | 64 |
| Total Expenses | 22.7% | 36,120 | 29,434 | 25,514 | 26,806 | 24,654 | 22,872 |
| Employee Expense | 14.6% | 245 | 214 | 182 | 159 | 145 | 176 |
| Finance costs | 14% | 34,135 | 29,949 | 23,738 | 22,053 | 21,489 | 18,997 |
| Depreciation and Amortization | 0% | 24 | 24 | 24 | 18 | 9.53 | 10 |
| Fees and commission expenses | -43.5% | 14 | 24 | 16 | 17 | 9.95 | 25 |
| Impairment on financial instruments | 174.9% | 1,019 | -1,358.39 | 115 | 3,473 | 2,420 | 890 |
| Other expenses | 17.6% | 683 | 581 | 1,439 | 1,086 | 581 | 2,748 |
| Profit Before exceptional items and Tax | 11.7% | 19,860 | 17,781 | 13,739 | 12,425 | 10,756 | 6,983 |
| Total profit before tax | 11.7% | 19,860 | 17,781 | 13,739 | 12,425 | 10,756 | 6,983 |
| Current tax | 21.8% | 4,012 | 3,295 | 2,521 | 3,047 | 2,907 | 1,616 |
| Deferred tax | -71.2% | 135 | 466 | 163 | -668.39 | -512.55 | 481 |
| Tax expense | 10.3% | 4,147 | 3,761 | 2,684 | 2,379 | 2,394 | 2,097 |
| Total profit (loss) for period | 12.1% | 15,713 | 14,019 | 11,055 | 10,046 | 8,362 | 4,886 |
| Other comp. income net of taxes | -245.5% | -1,516.8 | 1,044 | -971.04 | -59.07 | 457 | -549.79 |
| Total Comprehensive Income | -5.8% | 14,196 | 15,063 | 10,084 | 9,987 | 8,818 | 4,336 |
| Reserve excluding revaluation reserves | - | 0 | - | 55,046 | 49,011 | - | - |
| Earnings Per Share, Basic | - | - | 53.11 | 41.86 | 38.152595 | 31.755079 | 18.555046 |
| Earnings Per Share, Diluted | 12.4% | 59.55 | 53.11 | 41.86 | 38.152595 | 31.755079 | 18.555046 |
| Debt equity ratio | - | - | - | - | - | - | 0.0799 |
| -28.1% |
| 287 |
| 399 |
| 217 |
| 294 |
| 296 |
| 296 |
| Investment property | 0% | 48 | 48 | 0 | 0 | 0 | 0 |
| Property, plant and equipment | -1.7% | 568 | 578 | 621 | 630 | 635 | 639 |
| Capital work-in-progress | 38.7% | 105 | 76 | 49 | 24 | 6.63 | 2.72 |
| Total non-financial assets | 10.2% | 4,451 | 4,038 | 3,920 | - | - | - |
| Total assets | 4.2% | 639,371 | 613,555 | 594,395 | 547,440 | 512,460 | 464,877 |
| Equity share capital | 0% | 2,633 | 2,633 | 2,633 | 2,633 | 2,633 | 2,633 |
| Total equity | 6.6% | 82,739 | 77,638 | 72,893 | 68,783 | 63,117 | 57,680 |
| Derivative financial instruments | 143.4% | 4,064 | 1,670 | 2,945 | 760 | 935 | 977 |
| Debt securities | 8.4% | 317,070 | 292,475 | 288,024 | 266,110 | 251,175 | 236,949 |
| Borrowings | -2.4% | 189,632 | 194,300 | 188,269 | 172,092 | 164,346 | 137,114 |
| Subordinated liabilities | 0.1% | 9,527 | 9,514 | 7,373 | 7,412 | 4,043 | 6,773 |
| Total financial liabilities | 3.8% | 556,014 | 535,519 | 520,719 | - | - | - |
| Current tax liabilities | - | 165 | 0 | 296 | 67 | 172 | 0 |
| Provisions | 11% | 152 | 137 | 123 | 137 | 103 | 111 |
| Total non financial liabilities | 55% | 618 | 399 | 782 | - | - | - |
| Total liabilities | 3.9% | 556,632 | 535,918 | - | 478,657 | 449,343 | 407,197 |
| Total equity and liabilities | 4.2% | 639,371 | 613,555 | 594,395 | 547,440 | 512,460 | 464,877 |
| Other inflows/outflows of cash |
| 100% |
| 0 |
| -69,710.92 |
| -49,592.07 |
| -14,155.72 |
| - |
| - |
| Net Cashflows From Operating Activities | 32.3% | -39,182.17 | -57,885.22 | -37,481.66 | -3,962.66 | - | - |
| Proceeds from sales of PPE | -247.1% | 0 | 1.68 | 4.62 | 0.1 | - | - |
| Purchase of property, plant and equipment | 150% | 81 | 33 | 18 | 22 | - | - |
| Purchase of intangible assets | - | 1.61 | 0 | 0.01 | 0 | - | - |
| Purchase of intangible assets under development | - | 0 | 0 | 0 | 0.25 | - | - |
| Proceeds from sales of long-term assets | - | 6.07 | 0 | 10 | -188.47 | - | - |
| Purchase of other long-term assets | -44.2% | 1,067 | 1,911 | 801 | 0 | - | - |
| Other inflows/outflows of cash | -162.7% | -3.02 | -0.53 | -0.03 | 0 | - | - |
| Net Cashflows From Investing Activities | 38.8% | -1,146.36 | -1,875.19 | -803.87 | -210.32 | - | - |
| Payments to acquire entity's shares | - | 0 | 0 | 0.71 | 0 | - | - |
| Payments of other equity instruments | -102.3% | 0 | 44 | 44 | 0 | - | - |
| Proceeds from issuing debt etc | -100% | 0 | 27,928 | 14,824 | -20,858.86 | - | - |
| Proceeds from borrowings | 100.4% | 69,246 | 34,562 | 26,452 | 26,475 | - | - |
| Repayments of borrowings | - | 23,559 | 0 | 0 | 0 | - | - |
| Payments of lease liabilities | -2% | 0 | 0.02 | 0.01 | 0.02 | - | - |
| Dividends paid | 96.4% | 5,609 | 2,857 | 3,120 | 2,411 | - | - |
| Interest paid | - | 44 | 0 | 0 | 46 | - | - |
| Net Cashflows From Financing Activities | -32.8% | 40,034 | 59,588 | 38,111 | 3,159 | - | - |
| Net change in cash and cash eq. | -70.5% | -294.93 | -172.59 | -174.99 | -1,014.09 | - | - |
Change in Management • 01 Jan 2026 Intimation regarding change in Senior Management. |