REC Limited (IN:RECLTD)
:RECLTD
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REC Limited
(RECLTD)
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Rating:62Neutral
Price Target:
₹376.00
▼(-1.27% Downside)
Action:DowngradedDate:05/02/26
The score is primarily constrained by financial risk factors—sharp recent revenue contraction, high leverage, and historically volatile cash flows—despite strong profitability. Technicals are neutral-to-mixed, offering limited additional support. Offsetting these risks, the stock screens as attractively valued with a low P/E and a high dividend yield.
Positive Factors
High and consistent profitability
REC has delivered multi-year profitability with net margins in the high-20% range and rising net income. Durable high margins support internal capital generation, underwriting capacity and dividend ability, providing a stable earnings base to fund lending and absorb cyclical shocks.
Negative Factors
Very high leverage
REC's debt-to-equity around 6–7x is materially elevated, increasing sensitivity to credit cycles and funding conditions. High leverage constrains financial flexibility, raises refinancing and interest cost risk, and limits the firm's ability to absorb asset-quality shocks without relying on external capital or state support.
Read all positive and negative factors
Positive Factors
Negative Factors
High and consistent profitability
REC has delivered multi-year profitability with net margins in the high-20% range and rising net income. Durable high margins support internal capital generation, underwriting capacity and dividend ability, providing a stable earnings base to fund lending and absorb cyclical shocks.
Read all positive factors
REC Limited (RECLTD) vs. iShares MSCI India ETF (INDA)
Market Cap
₹933.08B
Dividend Yield5.56%
Average Volume (3M)256.74K
Price to Earnings (P/E)5.2
Beta (1Y)1.46
Revenue Growth5.53%
EPS Growth2.67%
CountryIN
Employees512
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)12.65
Shares Outstanding2,633,224,000
10 Day Avg. Volume217,230
30 Day Avg. Volume256,735
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)1.00
Price to Sales (P/S)1.46
P/FCF Ratio14.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)64.59
Revenue Forecast (FY)₹238.14B
REC Limited Business Overview & Revenue Model
Company Description
REC Limited, a public financial institution, provides financing services for power generation, transmission, and distribution projects in India. It primarily offers term-loan, medium-term loan, and short-terms loan. The company also acts as a noda...
How the Company Makes Money
REC Limited primarily makes money through interest income earned on its lending activities. Its core revenue model is to raise funds (through market borrowings and other financing sources) and deploy those funds as loans and other financing to eli...
REC Limited Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
55
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 585.92B | 583.93B | 560.31B | 471.88B | 383.34B | 384.19B |
| Gross Profit | 228.58B | 580.22B | 219.00B | 172.41B | 146.01B | 163.69B |
| EBITDA | 220.70B | 570.32B | 201.42B | 179.84B | 139.22B | 124.49B |
| Net Income | 172.67B | 163.08B | 158.84B | 141.45B | 111.67B | 100.36B |
Balance Sheet | ||||||
| Total Assets | 6.40T | 6.40T | 6.15T | 5.48T | 4.66T | 4.11T |
| Cash, Cash Equivalents and Short-Term Investments | 58.92B | 16.11B | 6.32B | 4.98B | 487.00M | 1.41B |
| Total Debt | 5.17T | 5.15T | 4.96T | 4.46T | 3.81T | 3.33T |
| Total Liabilities | 5.57T | 5.55T | 5.36T | 4.79T | 4.07T | 3.60T |
| Stockholders Equity | 829.22B | 850.54B | 783.76B | 693.50B | 581.21B | 513.14B |
Cash Flow | ||||||
| Free Cash Flow | -150.59B | 59.02B | -391.46B | -577.56B | -373.77B | -39.58B |
| Operating Cash Flow | -149.70B | 59.72B | -390.64B | -577.23B | -373.60B | -39.10B |
| Investing Cash Flow | -16.69B | -33.08B | -13.02B | -18.31B | -9.43B | -2.87B |
| Financing Cash Flow | 170.69B | -23.75B | 400.34B | 595.88B | 381.23B | 31.59B |
REC Limited Technical Analysis
Positive
380.85
Price Trends
342.46
Positive
346.59
Positive
356.63
Positive
Market Momentum
6.11
Negative
67.51
Neutral
90.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RECLTD, the sentiment is Positive. The current price of 380.85 is above the 20-day moving average (MA) of 335.40, above the 50-day MA of 342.46, and above the 200-day MA of 356.63, indicating a bullish trend. The MACD of 6.11 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 90.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RECLTD.
REC Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹1.36T | 7.03 | ― | 2.86% | 4.07% | -4.72% | |
78 Outperform | ₹1.48T | 4.66 | ― | 4.62% | 11.04% | 13.09% | |
75 Outperform | ₹1.26T | 6.40 | ― | 2.40% | 10.10% | 2.56% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | ₹933.08B | 5.21 | ― | 5.56% | 5.53% | 2.67% | |
61 Neutral | ₹2.21T | 16.37 | ― | 1.08% | 11.01% | 4.86% | |
53 Neutral | ₹1.36T | 22.58 | ― | 1.52% | -0.66% | 7.18% |
* Financial Sector Average
IN:RECLTD
REC Limited
354.35
-47.30
-11.78%
IN:BANKBARODA
Bank of Baroda
263.50
22.56
9.36%
IN:IRFC
Indian Railway Finance Corp. Ltd.
104.14
-18.51
-15.09%
IN:PFC
Power Finance Corporation Limited
448.15
54.33
13.80%
IN:PNB
Punjab National Bank
109.35
12.75
13.20%
IN:SHRIRAMFIN
Shriram Finance Limited
937.35
314.85
50.58%
REC Limited Corporate Events
REC names Mohan Lal Kumawat as Executive Director (Finance-Bonds) and KMP
Apr 9, 2026
REC Limited has appointed executive director Mohan Lal Kumawat as Executive Director (Finance-Bonds), a position designated as key managerial personnel effective 9 April 2026. Kumawat, a chartered accountant, company secretary and MBA (Finance) wi...
REC Limited Declares Fourth Interim Dividend and Shifts to Fully Electronic Payouts
Mar 16, 2026
REC Limited’s board has approved a fourth interim dividend of Rs 3.20 per equity share for the 2025-26 financial year, representing 32% of the face value of Rs 10 per share. The record date has been set for March 20, 2026, with dividend paym...
REC Limited Declares Fourth Interim Dividend and Moves to Fully Electronic Payouts
Mar 16, 2026
REC Limited’s board has declared a fourth interim dividend for the 2025-26 financial year at 32%, equivalent to ₹3.20 per equity share with a face value of ₹10. The record date has been set for March 20, 2026, with dividend payou...
REC Subsidiary Sells Umred Power Transmission SPV to Maharashtra Grid Utility
Feb 26, 2026
REC Limited has announced that its wholly owned subsidiary, REC Power Development and Consultancy Limited, has sold and transferred its entire shareholding in project-specific special purpose vehicle Umred Power Transmission Limited. The 50,000 eq...
REC Denies Merger Talks With PFC, Awaits Clarity on Government Restructuring Plan
Feb 3, 2026
REC Limited has clarified to stock exchanges that recent media reports suggesting a proposed merger between Power Finance Corporation (PFC) and REC are not based on any information or discussions involving the company. The company stated it is not...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.