REC Limited
Ticker: RECLTD
Decent
68/100
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Investing Reference
Price
375.80
Market Cap
98956.56
Debt/Equity
6.3316
ROE %
21.505
PB
1.2626
Promoter %
52.635
Pledge %
0.000
1Y Rev Growth %
18.631
5Y Rev Growth %
13.459
NP Margin %
28.147
NP Margin 5Y Avg %
27.040
Trading Reference
1M Return %
-1.174
6M Return %
-11.221
1Y Return %
-31.336
% Away 52W High
52.555
% Away 52W Low
7.803
Daily Volume
4289079
Investment Verdict
Buy
Score 79/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 20/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
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Business Overview
REC Limited, a leading public sector financial company in India, specializes in providing financial support for power sector projects. It plays a crucial role in facilitating the growth of renewable energy and infrastructure development, making it an essential partner for state utilities and private developers. With a strong focus on sustainability, REC Limited is pivotal in driving India's energy transition, ensuring reliable power supply for millions.
- Public sector financial company in India
- Supports power sector projects
- Focus on renewable energy financing
- Key player in infrastructure development
- Ensures reliable power supply
- Contributes to India's energy transition
Investment Thesis
REC Limited stands out as a robust investment choice due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. Its strategic positioning in the power sector enhances its appeal for long-term investors.
- Strong backing from the Government of India ensures stability and trust.
- Growing focus on digital services opens new revenue streams.
- Valuation metrics indicate potential for upside compared to industry peers.
- Established market presence with a diversified portfolio enhances resilience.
- Commitment to sustainable energy projects aligns with national priorities.
Opportunity vs Risk
Opportunities
- Strong demand for renewable energy
- Government incentives for green projects
- Expansion into new markets
- Technological advancements in energy
- Partnerships with leading firms
Risks ⚠️
- Regulatory changes affecting operations
- High competition in the sector
- Fluctuating raw material prices
- Dependence on government policies
- Economic downturn impacts demand
Peer Perspective
REC Limited trades at a discount to peers like Power Finance Corporation and NTPC, reflecting its growth potential. A rerating could occur if it achieves consistent margin stability and accelerates its loan book growth.
Future Outlook
REC Limited is well-positioned for growth, driven by increasing demand for renewable energy. However, successful execution of projects and effective cost control will be crucial to fully capitalize on these opportunities.
AI FAQs for Retail Users
- Q: What does REC Limited do?A: REC Limited is a public sector financial company focused on financing power sector projects in India.
- Q: Is REC Limited a good investment?A: Investment decisions should be based on individual financial goals and thorough research.
- Q: What are the risks of investing in REC Limited?A: Risks include market volatility, regulatory changes, and sector-specific challenges in the power industry.
- Q: How can I buy REC Limited shares?A: You can purchase shares through a registered stockbroker or online trading platform.
- Q: Does REC Limited pay dividends?A: Yes, REC Limited has a history of paying dividends, but future payments depend on company performance.
📊 Stock Investment Checklist (100 Points)
REC Limited • Updated: 2025-09-17 16:18:44
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10BusinessHighThe company operates in the power finance sector, which is essential for India's infrastructure development.
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10GrowthHighREC has shown consistent revenue and profit growth over the past few years.
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10ProfitabilityHighStrong ROE and ROCE, but OCF is slightly lower than net profit.
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8ValuationHighValuation metrics like P/E and P/B are reasonable compared to peers.
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7BalanceHighDebt/equity ratio is manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is decent, but there are some concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks remain due to regulatory challenges.
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5TechnicalsGoodMarket sentiment is neutral, with moderate liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
REC Limited shows potential for growth in a vital sector, but investors should be cautious of execution risks and governance issues.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100