REC Limited (IN:RECLTD)
:RECLTD
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REC Limited
(RECLTD)
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Rating:75Outperform
Price Target:
₹369.00
▼(-3.11% Downside)
Action:UpgradedDate:10/30/25
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.
Positive Factors
Revenue Growth
Consistent revenue growth demonstrates durable demand for REC's lending products across the power value chain. A sustained top-line expansion supports scale benefits in underwriting, fee income and interest accruals, improving long-term earnings visibility even as credit cycles fluctuate.
Negative Factors
High Leverage
Significant leverage raises refinancing and interest-rate vulnerability for a borrower-funded lender. High debt levels reduce financial flexibility, amplify earnings volatility from rate moves or credit stresses, and constrain the company's ability to expand or absorb shocks without raising fresh equity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth demonstrates durable demand for REC's lending products across the power value chain. A sustained top-line expansion supports scale benefits in underwriting, fee income and interest accruals, improving long-term earnings visibility even as credit cycles fluctuate.
Read all positive factors
REC Limited (RECLTD) vs. iShares MSCI India ETF (INDA)
Market Cap
₹920.97B
Dividend Yield5.56%
Average Volume (3M)256.74K
Price to Earnings (P/E)5.8
Beta (1Y)1.49
Revenue Growth18.51%
EPS Growth16.04%
CountryIN
Employees512
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)15.40
Shares Outstanding2,633,224,000
10 Day Avg. Volume217,230
30 Day Avg. Volume256,735
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)1.40
Price to Sales (P/S)1.96
P/FCF Ratio-2.81
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)66.16
Revenue Forecast (FY)₹243.36B
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 loan book. Its core business is lending and financing to eligible borrowers in the power value chain (including utilities, project developers, and other sector participants), ...
REC Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 585.92B | 560.31B | 471.88B | 383.34B | 384.19B | 351.47B |
| Gross Profit | 228.58B | 219.00B | 172.41B | 146.01B | 163.69B | 136.58B |
| EBITDA | 220.70B | 201.42B | 179.84B | 139.22B | 124.49B | 107.90B |
| Net Income | 172.67B | 158.84B | 141.45B | 111.67B | 100.36B | 83.78B |
Balance Sheet | ||||||
| Total Assets | 6.40T | 6.15T | 5.48T | 4.66T | 4.11T | 4.01T |
| Cash, Cash Equivalents and Short-Term Investments | 58.92B | 6.32B | 4.98B | 487.00M | 1.41B | 12.86B |
| Total Debt | 5.17T | 4.96T | 4.46T | 3.81T | 3.33T | 3.30T |
| Total Liabilities | 5.57T | 5.36T | 4.79T | 4.07T | 3.60T | 3.57T |
| Stockholders Equity | 829.22B | 783.76B | 693.50B | 581.21B | 513.14B | 437.64B |
Cash Flow | ||||||
| Free Cash Flow | -150.59B | -391.46B | -577.56B | -373.77B | -39.58B | -435.87B |
| Operating Cash Flow | -149.70B | -390.64B | -577.23B | -373.60B | -39.10B | -435.12B |
| Investing Cash Flow | -16.69B | -13.02B | -18.31B | -9.43B | -2.87B | 8.61B |
| Financing Cash Flow | 170.69B | 400.34B | 595.88B | 381.23B | 31.59B | 421.13B |
REC Limited Technical Analysis
Positive
380.85
Price Trends
342.70
Positive
346.29
Positive
356.91
Negative
Market Momentum
-0.30
Negative
58.50
Neutral
94.41
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 329.92, above the 50-day MA of 342.70, and above the 200-day MA of 356.91, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 94.41 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 | ₹1.43T | 7.03 | ― | 2.86% | 4.40% | -3.84% | |
75 Outperform | ₹920.97B | 5.80 | ― | 5.56% | 18.51% | 16.04% | |
75 Outperform | ₹1.28T | 6.40 | ― | 2.40% | 12.10% | 12.93% | |
70 Outperform | ₹1.93T | 18.52 | ― | 1.08% | 21.24% | 22.61% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | ₹1.41T | 4.66 | ― | 4.62% | 13.05% | 16.78% | |
53 Neutral | ₹1.29T | 22.58 | ― | 1.52% | -0.41% | 4.98% |
* Financial Sector Average
IN:RECLTD
REC Limited
349.75
-31.45
-8.25%
IN:BANKBARODA
Bank of Baroda
276.00
48.88
21.52%
IN:IRFC
Indian Railway Finance Corp. Ltd.
100.23
-21.53
-17.69%
IN:PFC
Power Finance Corporation Limited
434.70
50.47
13.14%
IN:PNB
Punjab National Bank
111.70
17.85
19.02%
IN:SHRIRAMFIN
Shriram Finance Limited
1,027.15
361.41
54.29%
REC Limited Corporate Events
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...
REC Board to Weigh Third Interim Dividend for FY 2025-26 on January 29
Jan 23, 2026
REC Limited has informed stock exchanges that its Board of Directors, at the meeting scheduled for January 29, 2026, will also consider a proposal to declare a third interim dividend for the financial year 2025-26. The move signals the companyR...
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.