REC

REC Ltd.

NSE: RECLTD  SECTOR: Finance Term Lending

125.8
-1.3 (-1.02%)

Price Summary

Today's High

₹ 126

Today's Low

₹ 124.2

52 Week High

₹ 156.85

52 Week Low

₹ 83.7

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationAttractive
The stock is considerably attractive based on intrinsic value.
EfficiencyPoor
The company seems highly inefficient in case of asset management.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

Company Essentials

Market Cap

₹ 24844.46844 Cr.

Advances

₹ 312083.5 Cr.

No. of Shares

197.4918 Cr.

P/E

3.69

P/B

0.6

Face Value

₹ 10

Div. Yield

8.74%

Book Value (TTM)

₹  211.3955

Operating Revenue

₹ 29791.06 Cr.

Net Profit

₹ 4886.16 Cr.

Promoter Holding

52.63%

EPS (TTM)

₹  34.0665

Sales Growth

17.7060038593868 %

ROE

14.0853133850777 %

ROCE

8.6614971205221 %

Profit Growth

-15.2255834773376 %

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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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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 (in Cr.)

1 Year17.71%
3 Year8.09%
5 Year8.05%

Profit Growth (in Cr.)

1 Year-15.23%
3 Year-7.86%
5 Year-1.46%

ROE%

1 Year14.09%
3 Year14.95%
5 Year17.22%

ROCE %

1 Year8.66%
3 Year8.89%
5 Year9.96%

ROA%

1.51923529559912

PEG Ratio

NA

PAT Margin (%)

16.401430496263

EPS Growth(%)

NA

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Dec 2020 52.63 0
Sep 2020 52.63 0
Jun 2020 52.63 0
Mar 2020 52.63 0
Dec 2019 52.63 0
* Figures given above are % of equity capital

 Strengths

  • The company is trading at 0.499690248986788 times the book value
  • The company boasts a well-maintained advances growth ratio of 20.7464140824101%.
  • Promoters shareholding is 52.63%.

 Limitations

  • PAT margin has shrunk by 6.3713224223785%.
  • The company has delivered poor profit growth of -7.85732898139873% over past 3 years
  • Provision and contingencies have increased by 188.750651746681%.

Quarterly Result (All Figures in Cr.)

PARTICULARS Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
Operating Revenue 7650.76 7839.4 8420.77 8779.38 9042.13
Other Income 2.23 55.28 1.35 12.08 4.89
Interest Expended 4767.95 4941.8 5193.02 5411.96 5445.97
Operating Expenses 539.47 2251.5 749.67 603.99 788.76
Total Provisions 0 0 0 0 0
Depreciation 2.29 3.15 2.38 2.26 2.24
Profit Before Tax 2343.28 698.23 2477.05 2773.25 2810.05
Tax 700.93 262.52 638.04 583.05 547.12
Net Profit 1642.35 435.71 1839.01 2190.2 2262.93

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

PARTICULARS Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Operating Income 23638.35 23587.3 22454.62 25309.72 29791.06
Other Income 117.93 184.93 26.12 34.44 85.79
Interest 14283.12 13450.35 13338.74 15659.56 19002.98
Operating Expenses 179.47 221.55 284.08 337.45 290.87
Total Provisions 1248.48 1239.63 2973.77 1246.65 3599.71
Exceptional Items 0 0 0 0 0
Profit Before Tax 8045.21 8860.7 5884.15 8100.5 6983.29
Tax 2417.55 2614.94 1464.26 2336.78 2097.13
Profit After Tax 5627.66 6245.76 4419.89 5763.72 4886.16
Adjusted EPS (Rs.) 28.5 31.63 22.38 29.18 24.74

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Equity and Liabilities
Share Capital 987.46 1974.92 1974.92 1974.92 1974.92
Total Reserves 27630.3 31350.67 30328.23 32328.02 33101.64
Borrowings 138789.43 149489.33 199010.98 233234.01 274734.97
Other N/C liabilities 7775.26 4515.39 -592.92 -511.2 -360.82
Current liabilities 37591.5 24520.26 10222.82 30140.82 36622.12
Total Liabilities 212773.95 211850.57 240944.03 297166.57 346072.83
Assets
Loans 157703.84 177275.24 228878.25 270450.92 312083.5
Net Block 118.74 121.11 128.34 162.49 161.8
Capital WIP 30.37 58.69 127.23 196.94 287.62
Investments 2317.46 2547.29 2824.81 2397.63 2300.72
Other Loans 6605.51 2727.02 2286.18 20328.15 24074.17
Other N/C Assets 8 345.09 4012.69 1.59 0.77
Current Assets 45990.03 28776.13 2686.53 3628.85 7164.25
Total Assets 212773.95 211850.57 240944.03 297166.57 346072.83
* Other Non-current Liabilities include Net deferred Liabilities

Corporate Actions

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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 4886.16 Cr and the compounded growth of profit in the past 3 years is -7.85732898139873 %. The PAT margin of REC is 16.401430496263 %.

  • 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 declined by -15.2254956381105 % YOY. 

 Financial Ratios –

  •  Return on Equity (ROE): The Company has a average ROE track record. The ROE of REC is at 14.0853133850777 % 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 125.8. The stock is trading at a current P/E ratio of 3.58714850996924 and the average historical P/E for the last 5 years was 4.31819257468675.

  • P/B ratio can be one of the best metrics to value such companies. Currently, REC is trading at a P/B of 0.595093083816827 . The average historical P/B for the last 5 years was 0.757935226853766. 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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