REC

REC Ltd.

NSE: RECLTD BSE: 532955 SECTOR: Finance Term Lending  92k   750   178

117.75
+1.55 (1.33%)
NSE: 20 May 03:59 PM

Price Summary

Today's High

₹ 118.25

Today's Low

₹ 116.8

52 Week High

₹ 168.85

52 Week Low

₹ 113.25

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

₹ 23254.66 Cr.

Advances

₹ 365261.49 Cr.

No. of Shares

197.49 Cr.

P/E

2.31

P/B

0.46

Face Value

₹ 10

Div. Yield

13.02 %

Book Value (TTM)

₹  258.17

Operating Revenue

₹ 35387.89 Cr.

Net Profit

₹ 8361.78 Cr.

Promoter Holding

52.63 %

EPS (TTM)

₹  50.87

Sales Growth

18.7

ROE

21.46 %

ROCE

9.29%

Profit Growth

71.13 %

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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.

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Index Presence

The company is present in 31 Indices.

NIFTYMIDCAP

NIFTY Midcap 100
27872.2
  600.299999999999 (2.2011667687253%)

NIFTYFINANCE

Nifty Financial Services
15793.6
  395.700000000001 (2.56983095097383%)

NTYFIN2550

Nifty Financial Services 25/50
15503.7
  345.85 (2.28165603960984%)

NIFTY500

Nifty 500
13895.05
  344.15 (2.53968371104503%)

NIFTYMIDCAP150

Nifty Midcap 150
10460.55
  208.75 (2.03622778438908%)

NIFTYMIDSMALL400

Nifty MidSmallcap 400
9810.45
  198.700000000001 (2.06726142481859%)

NY500MUL50:25:25

Nifty500 Multicap 50:25:25
9041.4
  210.549999999999 (2.38425519627214%)

NIFTYLGEMID250

NIFTY LargeMidcap 250
9036.5
  208.049999999999 (2.35658581064626%)

NIFTY200

Nifty 200
8597.1
  218.75 (2.61089594013142%)

NIFTYTOTALMCAP

Nifty Total Market index
7734.3
  191.85 (2.54360320585487%)

MIDCAP50

Nifty Midcap 50
7591.6
  168.85 (2.27476339631538%)

LIX 15 MIDCAP

Nifty Midcap Liquid 15
6899.35
  174.650000000001 (2.59714187993518%)

NIFTYPSE

Nifty PSE
4090.4
  56.0999999999999 (1.3905758124086%)

NIFTYDIVOPPT

Nifty Dividend Opportunities 50
3520.05
  77.3500000000004 (2.24678304818893%)

NIFTY500VAL50

NIFTY500 Value 50
5932.27
  -106.799999999999 (-1.76848422025244%)

NFTALQLV30

NIFTY Alpha Quality Value Low-Volatility 30
10105.97
  -237.150000000001 (-2.29282846955272%)

MIDCAP

S&P Bse Mid Cap
22506.85
  437.119999999999 (1.98063138969076%)

BSE500

S&P Bse 500
22137.19
  548.18 (2.53916228673756%)

BSEPSU

S&P Bse PSU
8447.92
  161.629999999999 (1.95057136547236%)

MID150

S&P Bse 150 MidCap
7992.32
  157.969999999999 (2.0163765979309%)

FIN

S&P Bse Finance
7367.07
  181.45 (2.52518223897171%)

BSE200

S&P Bse 200
7051.46
  178.02 (2.58996950580788%)

LMI250

S&P Bse 250 LargeMidCap
6673.67
  166.91 (2.56517836834307%)

ALLCAP

S&P Bse Allcap
6363.83
  157.94 (2.54500160331554%)

MSL400

S&P Bse 400 MidSmallCap
6079.14
  123.150000000001 (2.06766633254927%)

BHRT22

S&P Bse Bharat 22 Index
4119.91
  90.1799999999998 (2.23786705312763%)

CPSE

S&P Bse CPSE
1597.46
  22.8500000000001 (1.4511529839135%)

SPBSEVIP

S&P Bse Enhanced Value
413.69
  9.01999999999998 (2.22897669706179%)

BSEINFRA

S&P Bse Infrastructure
276.39
  4.80000000000001 (1.76736993261903%)

S&P LARGEMIDCAP

S&P Bse Large MidCap
6628.39
  169.08 (2.61761705197614%)

S&P MIDSMLCAP

S&P Bse MidSmallCap
6527.43
  132.02 (2.06429298512527%)

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 Year18.7%
3 Year16.37%
5 Year8.4%

Profit Growth

1 Year71.13%
3 Year23.68%
5 Year8.24%

ROE%

1 Year21.46%
3 Year17.62%
5 Year17.3%

ROCE %

1 Year9.29%
3 Year9.06%
5 Year9.43%

ROA%

2.23986406383614

PEG Ratio

0.03

PAT Margin (%)

23.6289306878709

EPS Growth(%)

71.1314371632627

Share Holding Pattern

Promoter Pledging %

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

 Strengths

  • PAT margin has surged by 7.2395318599127%.
  • Company has a healthy Return on Equity (ROE) track record of 17.6159730477039%.
  • The company is trading at 0.604666491088801 times the book value
  • Operating Income has grown well for the company over past 3 years: 3 years CAGR 16.3721329430609%.
  • The company has delivered substantial profit growth of 0% over past 3 years.
  • The company boasts a well-maintained advances growth ratio of 16.8601539375332%.
  • Promoters shareholding is 52.63%.

 Limitations

 Looks like the company does not have any serious limitations.

Quarterly Result (All Figures in Cr.)

PARTICULARS Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
Operating Revenue 9145.61 9587.35 10039.14 10006.89 9580.1
Other Income 4.23 4.76 39.68 32.05 21.47
Interest Expended 5438.14 5588.56 5562.55 5548.72 5353.08
Operating Expenses 1013.28 1242.68 1129.6 1033.45 1409.94
Total Provisions 0 0 0 0 0
Depreciation 2.65 2.81 4.65 5.07 5.43
Profit Before Tax 2695.77 2758.06 3382.02 3451.7 2833.12
Tax 626.14 511.46 643.23 679.05 545.24
Net Profit 2069.63 2246.6 2738.79 2772.65 2287.88

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

PARTICULARS Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Operating Income 23587.3 22454.62 25309.72 29812.93 35387.89
Other Income 184.93 26.12 34.44 63.92 22.55
Interest 13450.35 13338.74 15659.56 19002.98 21491.91
Operating Expenses 221.55 284.08 337.45 290.87 238.8
Total Provisions 1239.63 2973.77 1246.65 3599.71 2923.6
Exceptional Items 0 0 0 0 0
Profit Before Tax 8860.7 5884.15 8100.5 6983.29 10756.13
Tax 2614.94 1464.26 2336.78 2097.13 2394.35
Profit After Tax 6245.76 4419.89 5763.72 4886.16 8361.78
Adjusted EPS (Rs.) 31.63 22.38 29.18 24.74 42.34

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Equity and Liabilities
Share Capital 1974.92 1974.92 1974.92 1974.92 2533.32
Total Reserves 31350.67 30328.23 32328.02 33101.64 40893.05
Borrowings 149489.33 199010.98 233234.01 274734.97 311244.82
Other N/C liabilities 4515.39 -592.92 -511.2 -360.82 -2309.07
Current liabilities 24520.26 10222.82 30140.82 36622.12 48197.86
Total Liabilities 211850.57 240944.03 297166.57 346072.83 400559.98
Assets
Loans 177275.24 228878.25 270450.92 312083.5 365261.49
Net Block 121.11 128.34 162.49 161.8 266.22
Capital WIP 58.69 127.23 196.94 287.62 335.67
Intangible WIP 1.46 1.46 1.59 0.77 0.77
Investments 2547.29 2824.81 2397.63 2232.38 1524.94
Other Loans 2727.02 2286.18 20328.15 24074.17 24644.63
Other N/C Assets 343.63 4011.23 0 0 0
Current Assets 28776.13 2686.53 3628.85 7232.59 8526.26
Total Assets 211850.57 240944.03 297166.57 346072.83 400559.98
* Other Non-current Liabilities include Net deferred Liabilities

Corporate Actions

Investors Details

PARTICULARS Mar 2021% Jun 2021% Sep 2021% Dec 2021% Mar 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 Mar 2021% Jun 2021% Sep 2021% Dec 2021% Mar 2022%
Investors 47.37 47.37 47.37 47.37 47.37
hdfc trustee compa... - 8.43 8.37 8.16 8.05
hdfc trustee compa... - - - - -
hdfc trustee compa... 8.47 - - - -
the windacre partn... 2.89 2.96 2.96 4.31 4.35
lic of india pensi... - - - - -
lic of india healt... 2.85 2.85 - - -
lici health plus n... - - 2.85 2.85 2.85
life insurance cor... - - - - -
life insurance cor... - - - - -
the prudential ass... 1.05 1.05 1.10 1.15 1.15
abu dhabi investme... - - - - -
abu dhabi investme... - - - - -
qualified institut... 1.04 1.18 - - -
ubs principal capi... 1.11 1.11 1.11 - -
india capital fund... - - - - -
iepf 0.01 0.01 0.01 0.01 0.01

Annual Reports

Ratings & Research Reports

Company Presentations

Company News

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 raises $1,175 million from consortium of seven banks14 Jan 2022, 12:59PM REC’s arm hands over Kallam Transmission SPV to IndiGrid firms' consortium30 Dec 2021, 9:41AM REC enters into agreement with KfW Development Bank to avail ODA term loan23 Dec 2021, 5:30PM REC fixes record date for second interim dividend 30 Oct 2021, 12:43PM REC raises Rs 561 crore term loan from Sumitomo Mitsui Banking Corporation21 Oct 2021, 9:40AM REC gets shareholders' nod to raise up to Rs 85,000 crore28 Sep 2021, 12:05PM REC partners with Abdul Latif Jameel Poverty Action Lab23 Sep 2021, 1:13PM REC informs about outcome of board meeting31 Aug 2021, 4:09PM REC reports 23% rise in Q1 consolidated net profit6 Aug 2021, 12:56PM REC raises $400 million through bonds8 Jul 2021, 11:26AM REC informs about annual audited financial results28 May 2021, 4:39PM REC organizes Covid-19 vaccination camp in collaboration with Apollo Hospitals14 May 2021, 2:38PM REC’s CSR arm to provide Rs 4.33 crore to Tata Memorial Centre for cancer care services 18 Mar 2021, 10:35AM REC transfers Ramgarh New Transmission to Power Grid 10 Mar 2021, 9:58AM REC completes 25th distribution camp4 Mar 2021, 1:38PM REC raises $500 million through notes24 Feb 2021, 10:14AM REC informs about interest payment of bonds1 Dec 2020, 4:05PM REC, PFC signs initial pact with SJVN to provide Rs 8,520 crore worth loan for thermal power plant in Buxar27 Nov 2020, 10:32AM REC wins 'PSE Excellence Award 2019' 13 Oct 2020, 9:30AM REC gets shareholders nod to raise borrowing limit to Rs 4.5 lakh crore28 Sep 2020, 10:56AM REC informs about interest payment 25 Sep 2020, 4:21PM REC seeks shareholders' approval to raise borrowing limit 5 Sep 2020, 11:32AM REC submits certificate from debenture trustees 22 Jun 2020, 3:25PM REC gets nod to incorporate two SPVs as wholly owned subsidiaries of RECTPCL18 Jun 2020, 9:11AM REC ties up with TajSATS to provide meals to frontline healthcare workers27 May 2020, 2:26PM REC raises $500 million via Notes 13 May 2020, 3:11PM REC to incorporate seven SPVs 8 Apr 2020, 1:53PM

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 8361.78 Cr and the compounded growth of profit in the past 3 years is 23.6786783655761 %. The PAT margin of REC is 23.6289306878709 %.

  • 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 71.1314371632627 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a healthy ROE track record. The ROE of REC is at 21.4557198561592 % 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 117.75. The stock is trading at a current P/E ratio of 3.09992016967487 and the average historical P/E for the last 5 years was 4.64672861568245.

  • P/B ratio can be one of the best metrics to value such companies. Currently, REC is trading at a P/B of 0.4551 . The average historical P/B for the last 5 years was 0.764242428549646. 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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