REC Ltd.

NSE: RECLTD BSE: 532955 SECTOR: Finance Term Lending

151.3
-5.75 (-3.66%)
NSE: 20 Sep 04:13 PM

Price Summary

Today's High

₹ 156.35

Today's Low

₹ 151

52 Week High

₹ 167.8

52 Week Low

₹ 91.8

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.

Company Essentials

Market Cap

29880.51 Cr.

Advances

365261.49 Cr.

No. of Shares

197.49 Cr.

P/E

3.41

P/B

0.66

Face Value

₹ 10

Div. Yield

8.4%

Book Value (TTM)

₹  228.44

Operating Revenue

35387.89 Cr.

Net Profit

8361.78 Cr.

Promoter Holding

52.63%

EPS (TTM)

₹  44.4

Sales Growth

18.7 %

ROE

21.46 %

ROCE

9.29 %

Profit Growth

71.13 %

* 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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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.
* 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.

 Group Companies

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

0.05

PAT Margin (%)

23.6289306878709

EPS Growth(%)

71.1314371632627

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Jun 2021 52.63 0
Mar 2021 52.63 0
Dec 2020 52.63 0
Sep 2020 52.63 0
Jun 2020 52.63 0
* 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 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
Operating Revenue 8420.77 8779.38 9042.13 9145.61 9587.35
Other Income 1.35 12.08 4.89 4.23 4.76
Interest Expended 5193.02 5411.96 5445.97 5438.14 5588.56
Operating Expenses 749.67 603.99 788.76 1013.28 1242.68
Total Provisions 0 0 0 0 0
Depreciation 2.38 2.26 2.24 2.65 2.81
Profit Before Tax 2477.05 2773.25 2810.05 2695.77 2758.06
Tax 638.04 583.05 547.12 626.14 511.46
Net Profit 1839.01 2190.2 2262.93 2069.63 2246.6

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 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
Promoters 52.63 52.63 52.63 52.63 52.63
power finance corporation... 0 0 0 52.63 52.63
power finance corporation... 52.63 52.63 52.63 0 0
power finance corporation... 52.63 52.63 52.63 0 0
PARTICULARS Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
Public 8.3 8.87 8.33 8.33 8.71
iepf 0.01 0.01 0.01 0.01 0.01
qualified institutional b... 0 0.94 0.92 1.04 1.18
qualified institutional b... 0 0.94 0.92 1.04 1.18
PARTICULARS Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
FII/DII 39.07 38.49 39.04 39.03 38.66
hdfc trustee company limi... 8.65 0 0 0 0
lic of india health prote... 0 0 0 2.85 2.85
the prudential assurance ... 0 1.09 0 1.05 1.05
hdfc trustee company ltd.... 0 8.62 8.97 0 8.43
life insurance corporatio... 2.78 0 0 0 0
eastspring investments - ... 0 0 0 0 0
india capital fund limite... 1.02 0 0 0 0
hdfc trustee co ltd a/c h... 0 0 0 0 0
life insurance corporatio... 0 2.78 0 0 0
abu dhabi investment auth... 1.23 0 0 0 0
the windacre partnership ... 2.24 2.78 2.89 2.89 2.96
ubs principal capital asi... 1.11 1.11 1.12 1.11 1.11
abu dhabi investment auth... 0 1.32 1.44 0 0
lic of india pension plus... 0 0 2.87 0 0
hdfc trustee company limi... 0 0 0 8.47 0

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 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 #if( 71.1314371632627 > 0) then "grew" else "declined";# by 71.1314371632627 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a #if( 21.4557198561592 >= 20) then "healthy" elseif( 21.4557198561592 < 20 and 21.4557198561592 >=10) then "average" else "poor";# 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 $$PRICE_Y_1$$. 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 0.6641 . 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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