REC

REC Ltd.

NSE: RECLTD BSE: 532955 SECTOR: Finance Term Lending  166k   1k   283

115.70
+1.60 (1.40%)
NSE: 29 Mar 4:00 PM

Price Summary

Today's High

₹ 115.95

Today's Low

₹ 113.15

52 Week High

₹ 128.4

52 Week Low

₹ 82.24

FinStar

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.
FinancialsVery Stable
The company possesses stable growth history and sound margins.
*It is just an analytical rating of the company and not an investment advice.

Company Essentials

Market Cap

₹ 30466.4 Cr.

Advances

₹ 371930.54 Cr.

No. of Shares

263.32 Cr.

P/E

2.95

P/B

0.54

Face Value

₹ 10

Div. Yield

9.92 %

Book Value (TTM)

₹  213.94

Operating Revenue

₹ 39145.27 Cr.

Net Profit

₹ 10045.92 Cr.

Promoter Holding

52.63 %

EPS (TTM)

₹  39.27

Sales Growth

10.62

ROE

21.54 %

ROCE

9.11%

Profit Growth

20.14 %

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

Your Added Ratios

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Index Presence

The company is present in 31 Indices.

LIX 15 MIDCAP

Nifty Midcap Liquid 15
7223.75
  142.1 (2.006594508342%)

MIDCAP50

Nifty Midcap 50
8373.5
  142.4 (1.73002393361761%)

NFTALQLV30

NIFTY Alpha Quality Value Low-Volatility 30
11233.44
  121.26 (1.09123502319077%)

NIFTY200

Nifty 200
8875.6
  73.5500000000011 (0.835600797541503%)

NIFTY500

Nifty 500
14345.6
  133.800000000001 (0.941471171843133%)

NIFTY500VAL50

NIFTY500 Value 50
6847.87
  113.36 (1.68327020080155%)

NIFTYDIVOPPT

Nifty Dividend Opportunities 50
3824.45
  41.3999999999996 (1.09435508386089%)

NIFTYFINANCE

Nifty Financial Services
17793.85
  129.399999999998 (0.732544743821628%)

NIFTYLGEMID250

NIFTY LargeMidcap 250
9500.9
  113.4 (1.20798934753661%)

NFTFINSEREXBNK

Nifty Financial Services Ex-Bank Index
15515.36
  187.76 (1.22497977504632%)

NIFTYMIDCAP

NIFTY Midcap 100
29775.55
  450.799999999999 (1.53726800739988%)

NIFTYMIDCAP150

Nifty Midcap 150
11250.7
  185.050000000001 (1.67229218346867%)

NIFTYMIDSMALL400

Nifty MidSmallcap 400
10313.8
  170.65 (1.68241621192626%)

NIFTYPSE

Nifty PSE
4428.5
  51.25 (1.17082643212063%)

NIFTYTOTALMCAP

Nifty Total Market index
7984.8
  76.6999999999998 (0.969891630100772%)

NTYFIN2550

Nifty Financial Services 25/50
17054
  149.099999999999 (0.881992794988418%)

NY500MUL50:25:25

Nifty500 Multicap 50:25:25
9335.95
  111.550000000001 (1.20929274532762%)

BSE200

S&P Bse 200
7279.41
  63.0299999999997 (0.873429614294152%)

BSE500

S&P Bse 500
22822.89
  214.5 (0.948762826543592%)

BSEPSU

S&P Bse PSU
9389.25
  152.200000000001 (1.64771220248889%)

MIDCAP

S&P Bse Mid Cap
23837.68
  390.939999999999 (1.66735332929011%)

BSEINFRA

S&P Bse Infrastructure
281.01
  5.94999999999999 (2.16316440049444%)

FIN

S&P Bse Finance
8303.84
  77.25 (0.939028200019698%)

S&P LARGEMIDCAP

S&P Bse Large MidCap
6841.84
  60.3800000000001 (0.890368740654668%)

S&P MIDSMLCAP

S&P Bse MidSmallCap
6741.31
  110.990000000001 (1.67397651998697%)

ALLCAP

S&P Bse Allcap
6549.12
  64.6599999999999 (0.997153193943667%)

SPBSEVIP

S&P Bse Enhanced Value
463.24
  8.19999999999999 (1.80203938115331%)

BHRT22

S&P Bse Bharat 22 Index
4800.88
  53.2200000000003 (1.12097327946821%)

MID150

S&P Bse 150 MidCap
8495.33
  143.41 (1.71709020201343%)

LMI250

S&P Bse 250 LargeMidCap
6882.97
  61.0100000000002 (0.8943177620508%)

MSL400

S&P Bse 400 MidSmallCap
6388.55
  106.88 (1.70145837014679%)

Price Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

 

Volume Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

* Prices are based on daily market changes.

PE Chart 1w 1m 3m 6m 1Yr 3Yr 5Yr

PB Chart 1w 1m 3m 6m 1Yr 3Yr 5Yr

* The chart is based on the standalone earnings of the company. * Negative values and values more than 1000x in PE chart is considered 0.

Peer Comparison

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

 Group Companies

Track the companies of Group.

Ratios

Income Growth

1 Year10.62%
3 Year15.65%
5 Year10.66%

Profit Growth

1 Year20.14%
3 Year20.35%
5 Year9.97%

ROE%

1 Year21.54%
3 Year19.03%
5 Year17.57%

ROCE %

1 Year9.11%
3 Year9.02%
5 Year9.01%

ROA%

2.47755004504129

PEG Ratio

0.15

PAT Margin (%)

25.6631771859027

EPS Growth(%)

20.1410965569039

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Dec 2022 52.63 0
Sep 2022 52.63 0
Jun 2022 52.63 0
Mar 2022 52.63 0
Dec 2021 52.63 0
Investors List
* Figures given above are % of equity capital

 Strengths

  • Company has a healthy Return on Equity (ROE) track record of 19.0256034984335%.
  • The company is trading at 0.481714550877304 times the book value
  • Operating Income has grown well for the company over past 3 years: 3 years CAGR 15.6458411895596%.
  • The company has delivered substantial profit growth of 0% over past 3 years.
  • Promoters shareholding is 52.63%.

 Limitations

  • Provision and contingencies have increased by 63.0673061511337%.

Quarterly Result (All Figures in Cr.)

PARTICULARS Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022
Operating Revenue 10006.89 9580.1 9459.9 9940 9694.89
Other Income 32.05 21.47 8.61 8.55 16.82
Interest Expended 5548.72 5353.08 5376.69 5728.67 6134.96
Operating Expenses 1033.45 1409.94 1146.38 785 11.69
Total Provisions 0 0 0 0 0
Depreciation 5.07 5.43 5.89 5.85 6.1
Profit Before Tax 3451.7 2833.12 2939.55 3429.03 3558.96
Tax 679.05 545.24 492.29 700.65 680.88
Net Profit 2772.65 2287.88 2447.26 2728.38 2878.08

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Operating Income 22454.62 25309.72 29812.93 35387.89 39145.27
Other Income 26.12 34.44 63.92 22.55 97.96
Interest 13338.74 15659.56 19002.98 21491.91 22055.81
Operating Expenses 284.08 337.45 290.87 252.41 284.96
Total Provisions 2973.77 1246.65 3599.71 2909.99 4477.56
Exceptional Items 0 0 0 0 0
Profit Before Tax 5884.15 8100.5 6983.29 10756.13 12424.9
Tax 1464.26 2336.78 2097.13 2394.35 2378.98
Profit After Tax 4419.89 5763.72 4886.16 8361.78 10045.92
Adjusted EPS (Rs.) 16.79 21.89 18.56 31.75 38.15

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Equity and Liabilities
Share Capital 1974.92 1974.92 1974.92 2533.32 2533.32
Total Reserves 30328.23 32328.02 33101.64 40893.05 48452.28
Borrowings 199010.98 233234.01 274734.97 311244.82 321824.92
Other N/C liabilities -592.92 -511.2 -360.82 -2300.06 52.42
Current liabilities 10222.82 30140.82 36622.12 48188.85 37533.05
Total Liabilities 240944.03 297166.57 346072.83 400559.98 410395.99
Assets
Loans 228878.25 270450.92 312083.5 365261.49 371930.54
Net Block 128.34 162.49 161.8 266.22 627.92
Capital WIP 127.23 196.94 287.62 335.67 6.07
Intangible WIP 1.46 1.59 0.77 0.77 0
Investments 2824.81 2397.63 2232.38 1524.94 1869.69
Other Loans 2286.18 20328.15 24074.17 24644.63 27680.42
Other N/C Assets 4011.23 0 0 0 0.86
Current Assets 2686.53 3628.85 7232.59 8526.26 8280.49
Total Assets 240944.03 297166.57 346072.83 400559.98 410395.99
* Other Non-current Liabilities include Net deferred Liabilities

Corporate Actions

Investors Details

PARTICULARS Dec 2021% Mar 2022% Jun 2022% Sep 2022% Dec 2022%
Promoters 52.63 52.63 52.63 52.63 52.63
power finance corp... 52.63 52.63 52.63 52.63 52.63
power finance corp... - - - - -
PARTICULARS Dec 2021% Mar 2022% Jun 2022% Sep 2022% Dec 2022%
Investors 47.37 47.37 47.37 47.37 47.37
hdfc trustee compa... 8.37 8.16 - - -
hdfc trustee compa... - - - - -
hdfc large and mid... - - 7.55 - -
hdfc trustee compa... - - - 6.94 -
hdfc trustee compa... - - - - 5.33
the windacre partn... 2.96 4.31 4.35 4.35 3.64
lic of india pensi... - - - - -
lic of india healt... - - - - -
lici health plus n... 2.85 2.85 2.85 - -
life insurance cor... - - - - -
lici child fortune... - - - 2.67 2.10
the prudential ass... 1.10 1.15 1.14 1.15 -
abu dhabi investme... - - - - -
qualified institut... - - - - -
ubs principal capi... 1.11 - - - -
iepf 0.01 0.01 0.01 - -
investor education... - - - - 0.01

Annual Reports

Ratings & Research Reports

Company Presentations

Company News

REC’s arm hands over 6 SPVs to Power Grid 23 Mar 2023, 11:08AM REC informs about disclosure22 Mar 2023, 2:32PM REC informs about outcome of board meeting10 Mar 2023, 5:03PM REC to incorporate two SPVs as wholly owned subsidiaries of RECPDCL10 Mar 2023, 4:35PM REC’s board approves Rs 1,20,000 crore market borrowing programme for FY2410 Mar 2023, 10:29AM REC - Quaterly Results30 Jan 2023, 6:32PM REC - Quaterly Results30 Jan 2023, 6:32PM REC’s arm divests stake in WRSR Power Transmission18 Jan 2023, 2:21PM REC inks three strategic MoUs13 Jan 2023, 3:52PM REC gets nod to incorporate SPV as wholly owned subsidiary of RECPDCL7 Dec 2022, 10:08AM REC reports marginal rise in Q2 consolidated net profit27 Oct 2022, 4:27PM REC - Quaterly Results27 Oct 2022, 11:55AM REC - Quaterly Results27 Oct 2022, 11:55AM REC - Quaterly Results27 Oct 2022, 11:55AM REC, Power Finance Corporation sign memorandum of loan agreement with SJVN Thermal20 Oct 2022, 11:50AM REC’s arm hands over project specific SPV to Power Grid 12 Oct 2022, 4:57PM REC wins ‘Golden Peacock Award’ for excellence in corporate governance22 Sep 2022, 4:00PM Govt considers proposal to accord DFI status to REC19 Sep 2022, 12:25PM REC gets nod to incorporate SPV as wholly owned subsidiary of RECPDCL16 Sep 2022, 10:59AM REC planning to raise Rs 75,000 crore through issuance of bonds5 Sep 2022, 3:39PM REC’s arm hands over ‘Neemuch Transmission’ to Power Grid25 Aug 2022, 4:01PM REC informs about postal ballot results10 Aug 2022, 12:27PM REC gets nod for subscription of 50% equity shareholding in PFC Projects8 Aug 2022, 11:20AM REC sanctions Rs 22,000 crore to power distribution companies 6 Aug 2022, 12:20PM REC gets nod for incorporation of project-specific special purpose vehicles6 Aug 2022, 9:51AM REC gets nod to raise Rs 75,000 crore via NCDs5 Aug 2022, 11:30AM REC reports 8% rise in Q1 consolidated net profit5 Aug 2022, 10:38AM REC - Quaterly Results4 Aug 2022, 5:47PM REC - Quaterly Results4 Aug 2022, 5:47PM REC - Quaterly Results4 Aug 2022, 5:47PM REC partners with CEEW to improve performance of discoms8 Jul 2022, 3:12PM REC’s arm hands over Rajgarh Transmission to G R Infraprojects 2 Jun 2022, 10:28AM REC wins Platinum at Titan Business Awards31 May 2022, 3:28PM REC reports 11% rise in Q4 consolidated net profit14 May 2022, 11:23AM REC - Quaterly Results13 May 2022, 6:27PM REC - Quaterly Results13 May 2022, 6:27PM REC - Quaterly Results13 May 2022, 6:27PM REC informs about change in directorate11 May 2022, 4:39PM REC gets nod to sell Rajgarh Transmission to G R Infraprojects29 Apr 2022, 9:46AM REC, Jammu Power Distribution Corporation partner with J-PAL South Asia 23 Apr 2022, 12:46PM REC informs about postal ballot notice 26 Mar 2022, 10:24AM REC gets nod to incorporate SPV as wholly owned subsidiary of RECPDCL 23 Mar 2022, 9:23AM REC gets nod to raise Rs 85,000 crore in FY2322 Mar 2022, 11:12AM REC’s arm hands over SPV to ReNew Transmission Ventures 21 Mar 2022, 12:13PM REC partners with EPIC India to improve electricity distribution utility performance16 Mar 2022, 5:31PM REC informs about board meeting15 Mar 2022, 4:53PM REC reports 23% rise in Q3 consolidated net profit4 Feb 2022, 6:04PM REC - Quaterly Results4 Feb 2022, 3:09PM REC - Quaterly Results4 Feb 2022, 3:09PM REC - Quaterly Results4 Feb 2022, 3:09PM

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 10045.92 Cr and the compounded growth of profit in the past 3 years is 20.3450253067658 %. The PAT margin of REC is 25.6631771859027 %.

  • 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 20.140828659514 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a healthy ROE track record. The ROE of REC is at 21.5357772540636 % 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 115.75. The stock is trading at a current P/E ratio of 1.81353516488917 and the average historical P/E for the last 5 years was 3.98600334071134.

  • P/B ratio can be one of the best metrics to value such companies. Currently, REC is trading at a P/B of 0.5408 . The average historical P/B for the last 5 years was 0.646118453667709. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

Brief about REC

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