REC Ltd.

SECTOR: Finance Term Lending

88.95
₹ 1.25 (1.43%)
Today's High: 90.2 Today's Low : 87.1
52 Week High: 169.55 52 Week Low : 79.00
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationFair
The stock’s market price justifies its intrinsic value.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

 Company Essentials

Market Cap

17566.89561 Cr.

P/E

3.08

P/B

0.46

Face Value

₹10

Div. Yield

7.20%

Book Value (TTM)

195.0215

Advances

270450.92 Cr.

Operating Revenue

25310 Cr.

Net Profit

5764 Cr.

Promoter Holding

52.63%

EPS (TTM)

28.8953

Sales Growth

12.71 %

ROE

17.31 %

ROCE

9.22 %

Profit Growth

30.40 %

No. of Shares

197.4918 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Income Growth

1 Year12.71%
3 Year2.3%
5 Year8.26%

 Profit Growth

1 Year30.41%
3 Year0.8%
5 Year4.24%

 ROE

1 Year17.31%
3 Year16.98%
5 Year19.02%

 ROCE

1 Year9.22%
3 Year9.74%
5 Year10.62%

 ROA%

2.14

 PEG Ratio

0.1

  PAT Margin (%)

22.77

 EPS Growth(%)

30.4

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Dec 2019 52.63 0
Sep 2019 52.63 0
Jun 2019 52.63 0
Mar 2019 52.63 0
Dec 2018 52.85 0
* Figures given above are % of equity capital

 Strengths

  • PAT margin has surged by 3.09%.
  • The company is trading at 0.88 times the book value
  • The company boasts a well-maintained advances growth ratio of 19.6966690593946%.
  • Promoters shareholding is 52.63%.

 Limitations

  • The company has delivered poor profit growth of 0.799093809976781% over past 3 years
  • The company has delivered poor Operating Income growth of 2.30428056224916% over past 3 years.

 Quarterly Result (All Figures are in Crores.)

Particulars Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019
Operating Revenue 5508.71 6671.81 6986.19 7422.63 7650.76
Other Income 3.66 14.09 3 2.64 2.23
Interest Expended 4081.65 4161.13 4572.57 4714.73 4767.95
Operating Expenses -401.14 888.44 312.53 868.29 539.47
Total Provisions 0 0 0 0 0
Depreciation 1.96 2.03 2.09 2.47 2.29
Profit Before Tax 1829.9 1634.3 2102 1839.78 2343.28
Tax 555.35 378.17 600.66 533.02 700.93
Net Profit 1274.55 1256.13 1501.34 1306.76 1642.35

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Operating Income 20230 23638 23587 22455 25310
Other Income 159 118 185 26 34
Interest 11845 14283 13450 13339 15660
Adjusted EPS 27 28 32 22 29
Total Provisions 941 1248 1240 2974 1247
PBT & Exceptionals 7427 8045 8861 5884 8101
Exceptional Items 0 0 0 0 0
Profit Before Tax 7427 8045 8861 5884 8101
Operating Expenses 176 180 221 284 336
Profit After Tax 5260 5628 6246 4420 5764

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 987.46 987.46 1974.92 1974.92 1974.92
Total Reserves 23869.57 27630.3 31350.67 30328.23 32328.02
Borrowings 131168.32 138789.43 149489.33 199010.98 233234.01
Other N/C liabilities 6400.4 7775.26 4515.39 -415.18 -368.61
Current liabilities 25999.11 37591.5 24520.26 10045.08 29998.23
Total Liabilities 188424.86 212773.95 211850.57 240944.03 297166.57
Assets
Loans 164152.03 157703.84 177275.24 228878.25 270450.92
Net Block 73.93 118.74 121.11 128.34 162.49
Capital WIP 7.39 30.37 58.69 127.23 196.94
Investments 1174.81 2317.46 2547.29 2824.81 2397.63
Other Loans 5383.56 6605.51 2727.02 2286.54 2208.17
Other N/C Assets 5.15 8 345.09 1.52 9.11
Current Assets 17627.99 45990.03 28776.13 6697.34 21741.31
Total Assets 188424.86 212773.95 211850.57 240944.03 297166.57
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Ratings & Research Reports

 Company Presentations

 REC Stock Price Analysis and Quick Research Report

Is REC an attractive stock to invest in?

 

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

To understand the functions of the REC better, you must go through the following points:

Key Financials –

  • Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 57640 Cr and the compounded growth of profit in the past 3 years is 0.799093809976781 %. The PAT margin of REC is 22.7727529186415 %.

  • EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In REC , the EPS grew by 30.4 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a average ROE track record. The ROE of REC is at 17.3068859018747 % for the latest year.

  • P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of REC is worth at the current levels at Rs 88.95. The stock is trading at a current P/E ratio of 5.24 and the average historical P/E for the last 5 years was 4.226.

  • P/B ratio can be one of the best metrics to value such companies. Currently, REC is trading at a P/B of 0.880001894881313 . The average historical P/B for the last 5 years was 0.92. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

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