REC Ltd logo

REC Ltd

RECLTD NSE

REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. [1]

AI Verdict: BUY Confidence: 7%

REC Ltd trades at a compelling PE of 5.8x with a consistent 20-21% ROE over 3-5 years and a dividend yield of 4.74%, making it an attractive value play. With 77% analyst buy ratings and zero sell recommendations, the risk-reward is favorable despite moderate growth concerns.

Key Fundamentals

MidcapFinancial InstitutionFinancial Services
Market Cap
₹95,849 Cr
Volatility
Moderate
P/E Ratio
5.89
EBITDA
₹56,987 Cr
Return on Equity
20.4%
Debt to Equity
6.38
Book Value
₹323
EPS
₹55.59
52W High
₹409.8
52W Low
₹304.05

Technical Indicators

Key Insights

Strengths

3
  • Stock is trading at 1.13 times its book value
  • Stock is providing a good dividend yield of 4.95%.
  • Company has been maintaining a healthy dividend payout of 29.9%

Weaknesses

3
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 10.9% over past five years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
5.58% ↗
Net Income Growth
7.11% ↗
Cash Flow Change
32.32% ↗
ROE
-0.64% ↗
ROCE
-0.32% ↗
EBITDA Margin (Avg.)
-0.62% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

REC Ltd trades at a compelling PE of 5.8x with a consistent 20-21% ROE over 3-5 years and a dividend yield of 4.74%, making it an attractive value play. With 77% analyst buy ratings and zero sell recommendations, the risk-reward is favorable despite moderate growth concerns.

Bull Case 8
  • Exceptionally low PE ratio of 5.8x indicates deep value compared to financial services sector average of 15-20x
  • Consistent ROE of 20-21% over 3, 5, and 10-year periods demonstrates strong and stable capital efficiency
  • Attractive dividend yield of 4.74% with a healthy payout ratio of 29.9%, offering reliable income
  • Trading at just 1.11x book value, significantly below peers, providing margin of safety
  • Overwhelming analyst consensus with 76.92% buy ratings (10 of 13 analysts) and zero sell recommendations
  • Strong 3-year stock CAGR of 31% and 5-year CAGR of 27% showing sustained wealth creation
  • Compounded profit growth of 13-14% over 3-5 years outpacing sales growth, indicating improving margins
  • Market cap of Rs 93,795 Cr provides institutional-grade liquidity and index inclusion benefits
Bear Case 8
  • Low interest coverage ratio raises concerns about debt servicing ability in a rising rate environment
  • Poor sales growth of only 10.9% over 5 years limits long-term compounding potential
  • Possible capitalization of interest costs may be inflating reported profitability
  • TTM sales growth has decelerated to just 6%, down from 15% 3-year CAGR, signaling slowdown
  • TTM profit growth of only 3% is a sharp deceleration from 13% 3-year CAGR
  • Negative 1-year stock CAGR of -10% indicates recent loss of market confidence
  • As a government-owned NBFC focused on power sector lending, concentration risk remains elevated
  • Debt-to-equity data unavailable but high leverage is inherent to infrastructure lending NBFCs

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Neutral 6
  • Restructuring plan with PFC Jun 15

    REC announced a restructuring initiative in coordination with PFC. Scope, nature, and financial implications remain undisclosed pending further disclosures.

  • Two independent directors appointed Jun 23

    REC appointed Dr. Anil Kumar Gupta and Dr. Kanchiappan Ghayathri Devi as Independent Directors for three months effective June 22, 2026.

  • PFC declares no encumbrance Jun 20

    Power Finance Corporation declared no encumbrance on REC Ltd shares for FY 2025-26 under SEBI regulations, indicating no pledging of promoter holdings.

  • SPV transfers for ₹16.67 crore May 30

    REC sold Hampapura and Mekhali Power Transmission SPVs to Resonia and Dilip Buildcon on May 30, 2026 for ₹16.67 crore.

  • Jalna Power Transmission sold Jun 12

    Subsidiary RECPDCL transferred Jalna Power Transmission Limited to Maharashtra State Electricity Transmission Company for ₹3.21 crore on June 12, 2026.

  • Block trade of ₹25.79 crore Jun 1

    REC recorded an institutional block trade on NSE of ~7.69 lakh shares at ₹335.25 per share, totalling ₹25.79 crore.

TL;DR: REC's recent newsflow is operationally quiet with no material headwinds or bullish catalysts. Activity is dominated by routine SPV divestments under the TBCB framework and standard governance actions. The restructuring plan with PFC is the key item to watch — until details emerge, the outlook remains steady but largely event-dependent.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
10,243
11,104
11,688
12,052
12,677
13,079
13,682
14,272
15,334
14,737
15,153
15,051
14,564
Expenses
-149
332
-492
240
-425
717
97
263
1,084
217
476
655
1,231
Financing Profit
3,896
3,723
4,831
4,158
5,206
4,341
5,079
5,172
5,482
5,587
5,546
5,154
4,402
Fin. Margin %
38%
34%
41%
34%
41%
33%
37%
36%
36%
38%
37%
34%
30%
Other Income
12
4
13
20
29
14
24
15
15
87
10
-11
20
Interest
6,496
7,049
7,350
7,654
7,896
8,020
8,506
8,837
8,768
8,934
9,131
9,243
8,931
Depreciation
6
6
6
6
6
6
6
6
6
7
7
7
7
PBT
3,901
3,721
4,838
4,172
5,229
4,349
5,097
5,181
5,490
5,666
5,549
5,136
4,415
Tax %
21%
20%
22%
21%
22%
20%
21%
21%
21%
21%
20%
21%
24%
Net Profit
3,065
2,968
3,790
3,308
4,079
3,460
4,038
4,076
4,310
4,466
4,415
4,052
3,375
EPS in Rs
11.64
11.27
14.39
12.56
15.49
13.14
15.33
15.48
16.37
16.96
16.77
15.39
12.82
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
20,544
24,125
24,338
22,658
25,408
29,942
35,556
39,276
39,486
47,517
56,369
59,584
Expenses
1,149
1,680
1,888
3,379
1,702
3,981
3,292
4,838
1,858
-366
2,153
2,579
Financing Profit
7,555
8,162
8,988
5,946
8,066
6,969
10,776
12,387
13,894
17,936
20,084
20,767
Fin. Margin %
37%
34%
37%
26%
32%
23%
30%
32%
35%
38%
36%
35%
Other Income
6
4
24
18
33
72
15
62
28
48
58
26
Interest
11,840
14,282
13,462
13,333
15,639
18,991
21,489
22,051
23,733
29,948
34,131
36,238
Depreciation
8
20
40
7
8
12
11
18
24
24
25
27
PBT
7,552
8,147
8,972
5,958
8,090
7,030
10,780
12,431
13,898
17,960
20,117
20,766
Tax %
29%
30%
30%
25%
29%
29%
22%
19%
20%
21%
21%
21%
Net Profit
5,344
5,691
6,313
4,451
5,741
4,972
8,378
10,036
11,167
14,145
15,884
16,308
EPS in Rs
20.3
21.61
23.98
16.9
21.8
18.88
31.82
38.11
42.41
53.72
60.32
61.93
Div. Payout %
20%
30%
30%
41%
38%
44%
30%
30%
30%
30%
30%
30%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
987
987
1,975
1,975
1,975
1,975
1,975
1,975
2,633
2,633
2,633
2,633
Reserves
24,085
27,906
31,696
30,613
32,571
33,422
41,789
49,339
55,487
66,717
75,743
82,421
Borrowing
1,50,979
1,69,212
1,67,852
2,04,367
2,44,249
2,86,289
3,29,723
3,33,043
3,80,790
4,45,568
4,96,243
5,14,725
Other Liabilities
7,404
8,840
8,723
5,416
19,659
25,345
27,380
26,503
26,592
33,273
39,883
40,378
Total Liabilities
1,83,456
2,06,945
2,10,245
2,42,370
2,98,454
3,47,030
4,00,867
4,10,860
4,65,503
5,48,191
6,14,502
6,40,158
Fixed Assets
110
254
355
132
165
166
267
628
641
632
629
616
CWIP
10
78
166
129
199
288
336
6
3
24
76
128
Investments
1,596
2,352
2,617
2,948
2,463
2,386
1,981
2,190
3,170
5,352
6,674
9,831
Other Assets
1,81,740
2,04,261
2,07,108
2,39,162
2,95,627
3,44,190
3,98,282
4,08,035
4,61,689
5,42,184
6,07,123
6,29,583
Total Assets
1,83,456
2,06,945
2,10,245
2,42,370
2,98,454
3,47,030
4,00,867
4,10,860
4,65,503
5,48,191
6,14,502
6,40,158
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-23,898
-13,278
6,805
-32,510
-35,866
-32,712
-43,512
-819
-37,360
-57,723
-39,064
5,972
Investing
151
-756
-101
46
457
121
861
-287
-943
-1,831
-1,302
-3,308
Financing
23,098
15,291
-3,947
28,244
35,543
33,926
42,113
68
38,123
59,588
40,034
-2,375
Net Cash Flow
-649
1,257
2,757
-4,220
134
1,336
-538
-1,038
-180
34
-333
289
Free Cash Flow
-23,943
-13,537
6,601
-32,584
-35,957
-32,812
-43,586
-867
-37,377
-57,756
-39,147
5,896
CFO/OP
-111
-48
42
-157
-143
-119
-126
7
-92
-114
-64
17
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
23%
21%
20%
13%
17%
14%
21%
21%
20%
22%
22%
20%

Shareholding Pattern

As of Mar 2026
Promoters 52.63%
DIIs 16.35%
FIIs 15.79%
Public 12.48%
Others 2.70%
Government 0.05%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.02%
0.02%
0.00%
0.00%
20.60%
19.92%
20.43%
21.23%
21.73%
20.48%
19.16%
17.97%
16.46%
15.79%
DIIs
12.28%
12.51%
9.48%
9.94%
9.43%
8.68%
11.85%
12.11%
11.87%
12.01%
13.00%
14.17%
15.44%
14.68%
14.25%
13.90%
14.79%
15.50%
15.86%
16.22%
16.35%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
Public
6.29%
6.47%
6.08%
7.38%
8.35%
9.82%
9.73%
10.80%
11.06%
10.53%
10.07%
10.06%
9.66%
10.14%
9.85%
9.64%
9.94%
10.58%
11.31%
12.19%
12.48%
Others
28.80%
28.39%
31.81%
30.04%
29.58%
28.87%
25.73%
24.39%
24.37%
24.78%
24.26%
2.49%
2.29%
2.07%
1.98%
2.03%
2.11%
2.07%
2.17%
2.44%
2.70%
No. of Shareholders
0
3,32,824
3,42,008
3,31,546
3,81,990
4,23,518
4,67,024
5,20,507
5,76,759
5,71,815
6,21,578
6,89,192
7,70,808
10,33,680
10,40,890
10,41,320
10,82,800
11,26,510
11,54,540
11,79,930
12,08,650

Documents

Frequently Asked Questions about REC Ltd

What does REC Ltd do?
REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. [1]
Where is REC Ltd (RECLTD) listed?
REC Ltd is listed on the Indian stock exchanges. It is listed on NSE: RECLTD and BSE: 532955. You can view its live share price, financials, and ratios on Tapetide.
Which sector does REC Ltd belong to?
REC Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of REC Ltd?
REC Ltd has a market capitalisation of approximately ₹95849.35 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of REC Ltd?
The Price-to-Earnings (PE) ratio of REC Ltd is 5.89. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of REC Ltd?
Over the past 52 weeks, REC Ltd has traded between a low of ₹304.05 and a high of ₹409.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does REC Ltd pay dividends?
Yes, REC Ltd has a dividend yield of 4.67%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of REC Ltd?
REC Ltd has a Return on Equity (ROE) of 20.40%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research REC Ltd on Tapetide?
On Tapetide, you can view REC Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. [1]

Website recindia.nic.in
CEO Mr. Harsh Baweja
Listed 2008-03-12
Face Value ₹ 10
Issued Size 2,63,32,24,000

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