REC Limited (RECLTD) AI Stock Analysis

• Market Cap: ₹976.27B
• Dividend Yield: 5.5%
• Average Volume (3M): 256.74K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.73
• Revenue Growth: 18.51%
• EPS Growth: 16.04%
• Country: IN
• Employees: 512
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 16.81
• Shares Outstanding: 2,633,224,000
• 10 Day Avg. Volume: 217,230
• 30 Day Avg. Volume: 256,735
• PEG Ratio: 0.57
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.97
• P/FCF Ratio: -2.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹552.50
• Price Target Upside: 54.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹434.00 ▲(21.21% Upside)

REC Limited's strong valuation and positive technical indicators are the most significant factors driving its score. While financial performance shows promise, high leverage and negative cash flows pose risks that need addressing. The absence of earnings call and corporate events data limits the analysis to these key areas.

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 nodal agency for the implementation of Pradhan Mantri Sahaj Bijli Har Ghar Yojana for universal household electrification, Deen Dayal Upadhyaya Gram Jyoti Yojana, National Electricity Fund, Outage Management System, and 11kv Rural Feeder Monitoring Scheme, as well as acts as the bid process coordinator for selection of transmission service provider through tariff based competitive bidding process for independent inter-state and intra-state transmission projects; and provides implementation and consultancy services in power sector. It serves central/state government power utilities, as well as private sector power utilities. The company was formerly known as Rural Electrification Corporation Limited and changed its name to REC Limited in October 2018. REC Limited was incorporated in 1969 and is based in Gurugram, India. REC Limited is a subsidiary of Power Finance Corporation Limited.

How the Company Makes Money

REC Limited generates revenue primarily through interest income from loans and advances provided to power sector projects. The company offers financial products such as term loans, project financing, and working capital loans, which are instrumental in supporting electricity generation, transmission, and distribution. Additionally, REC earns income through fees for consultancy services and various financial instruments. The company is supported by its partnerships with government entities and financial institutions, which enhance its market reach and enable access to a wider customer base. REC's revenue is significantly influenced by the growth of the power sector in India and government policies promoting energy infrastructure development.

REC Limited Financial Statement Overview

Summary

REC Limited shows strong revenue and profit growth, which is promising for future performance. However, high leverage and negative cash flows present potential risks. Addressing operational inefficiencies and improving cash flow management will be crucial for sustaining growth and financial health.

Income Statement

REC Limited has shown a strong revenue growth trajectory, with a significant increase in total revenue from 2024 to 2025. The gross profit margin remains robust, indicating efficient cost management. Net profit margin also increased, showcasing improved profitability. However, the decline in EBIT and EBITDA margins in 2025 compared to previous years suggests some operational inefficiencies that need attention.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which could pose a risk if not managed properly. Nevertheless, the company maintains a strong return on equity, highlighting efficient use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset management strategy.

Cash Flow

REC Limited's cash flow statement reveals challenges, with negative operating cash flow and free cash flow over multiple years. This trend indicates potential liquidity concerns that need addressing. The operating cash flow to net income ratio is unfavorable, suggesting that net income is not translating effectively into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	571.89B	560.31B	471.88B	383.34B	384.19B	351.47B
Gross Profit	221.46B	219.00B	172.41B	146.01B	163.69B	136.58B
EBITDA	214.60B	201.42B	179.84B	139.22B	124.49B	107.90B
Net Income	168.90B	158.84B	141.45B	111.67B	100.36B	83.78B
Balance Sheet
Total Assets	0.00	6.15T	5.48T	4.66T	4.11T	4.01T
Cash, Cash Equivalents and Short-Term Investments	0.00	6.32B	4.98B	487.00M	1.41B	12.86B
Total Debt	0.00	4.96T	4.46T	3.81T	3.33T	3.30T
Total Liabilities	-783.76B	5.36T	4.79T	4.07T	3.60T	3.57T
Stockholders Equity	783.76B	783.76B	693.50B	581.21B	513.14B	437.64B
Cash Flow
Free Cash Flow	-221.79B	-391.46B	-577.56B	-373.77B	-39.58B	-435.87B
Operating Cash Flow	-221.13B	-390.64B	-577.23B	-373.60B	-39.10B	-435.12B
Investing Cash Flow	-13.34B	-13.02B	-18.31B	-9.43B	-2.87B	8.61B
Financing Cash Flow	177.24B	400.34B	595.88B	381.23B	31.59B	421.13B

REC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 358.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RECLTD, the sentiment is Negative. The current price of 358.05 is below the 20-day moving average (MA) of 366.55, below the 50-day MA of 369.81, and below the 200-day MA of 384.84, indicating a bearish trend. The MACD of -3.36 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RECLTD.

REC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANKBARODA	81 Outperform	₹1.49T	7.75	―	2.94%	4.40%	-3.84%
RECLTD	75 Outperform	₹976.27B	5.66	―	5.50%	18.51%	16.04%
PNB	75 Outperform	₹1.42T	8.32	―	2.37%	12.10%	12.93%
PFC	72 Outperform	₹1.31T	5.38	―	4.27%	13.05%	16.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.50T	15.18	―	1.25%	21.24%	22.61%
IRFC	61 Neutral	₹1.60T	23.36	―	1.55%	-0.41%	4.98%

REC Limited Corporate Events

REC Limited to Discuss Q2FY26 Financial Results in Upcoming Investor Call

REC Limited has announced a scheduled conference call with investors and analysts to discuss its financial results for the quarter and half-year ending September 30, 2025. This call, set for October 29, 2025, aims to provide updates on the company’s performance, potentially impacting its market positioning and offering insights into its operational strategies.

REC Limited Announces 56th Annual General Meeting and Annual Report Release

REC Limited has announced its 56th Annual General Meeting (AGM) scheduled for August 27, 2025, which will be conducted via video conferencing. The company has released its Annual Report for the financial year 2024-25, which is available on its website and through the National Securities Depository Limited. Shareholders are informed of the cut-off date for e-voting eligibility and the period for remote e-voting. The announcement underscores REC Limited’s commitment to transparency and stakeholder engagement, ensuring shareholders are informed and able to participate in the decision-making process.

REC Limited Submits Business Responsibility and Sustainability Report for FY 2024-25

REC Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year 2024-25 to the stock exchanges, in compliance with SEBI regulations. The report, which is part of the company’s annual report, includes an Independent Reasonable Assurance Report by Corporate Professionals, New Delhi. This submission underscores REC Limited’s commitment to sustainability and responsible business practices, potentially enhancing its reputation and trust among stakeholders.