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REC Limited (IN:RECLTD)
:RECLTD
India Market
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REC Limited (RECLTD) AI Stock Analysis

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IN:RECLTD

REC Limited

(RECLTD)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
₹434.00
▲(12.44% 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 (RECLTD) vs. iShares MSCI India ETF (INDA)

REC Limited Business Overview & Revenue Model

Company DescriptionREC Limited (RECLTD) is a leading public sector financial institution in India, primarily focused on providing financial services for the power sector. Established in 1965, the company plays a crucial role in the development of the electricity infrastructure in India by offering loans, financial assistance, and consulting services to various stakeholders, including government bodies, private sector players, and state-owned enterprises. REC Limited also contributes to the renewable energy sector, financing projects that support sustainable energy initiatives.
How the Company Makes MoneyREC 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
85
Very Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue572.57B559.11B466.88B386.92B384.19B351.46B
Gross Profit300.81B217.83B449.89B368.16B163.68B136.57B
EBITDA378.13B201.42B179.84B360.80B334.45B316.13B
Net Income168.90B158.84B141.45B111.67B100.36B83.78B
Balance Sheet
Total Assets0.006.15T5.48T4.66T4.11T4.01T
Cash, Cash Equivalents and Short-Term Investments0.006.32B4.98B487.00M1.41B12.86B
Total Debt0.004.96T4.46T3.81T3.33T3.30T
Total Liabilities-783.76B5.36T4.79T4.07T3.60T3.57T
Stockholders Equity783.76B783.76B693.50B581.21B513.14B437.64B
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-2.87B8.61B
Financing Cash Flow177.24B400.34B595.88B381.23B31.59B421.13B

REC Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price386.00
Price Trends
50DMA
369.72
Positive
100DMA
378.16
Positive
200DMA
391.09
Negative
Market Momentum
MACD
0.99
Negative
RSI
63.61
Neutral
STOCH
48.16
Neutral
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 386 is above the 20-day moving average (MA) of 371.17, above the 50-day MA of 369.72, and below the 200-day MA of 391.09, indicating a neutral trend. The MACD of 0.99 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RECLTD.

REC Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
₹1.37T7.033.04%7.78%2.18%
₹986.93B5.733.91%18.51%16.04%
₹1.31T7.672.40%12.10%12.93%
₹1.31T13.111.74%20.27%25.95%
₹1.31T5.383.97%14.06%17.29%
$18.00B11.429.92%3.81%9.73%1.22%
₹1.62T23.651.48%-0.41%4.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RECLTD
REC Limited
378.25
-115.40
-23.38%
IN:BANKBARODA
Bank of Baroda
274.50
31.67
13.04%
IN:IRFC
Indian Railway Finance Corp. Ltd.
123.90
-28.99
-18.96%
IN:PFC
Power Finance Corporation Limited
409.10
-28.43
-6.50%
IN:PNB
Punjab National Bank
121.15
26.06
27.41%
IN:SHRIRAMFIN
Shriram Finance Limited
738.45
120.95
19.59%

REC Limited Corporate Events

REC Limited to Discuss Q2FY26 Financial Results in Upcoming Investor Call
Oct 24, 2025

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
Aug 1, 2025

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
Aug 1, 2025

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.

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.Date of analysis: Oct 30, 2025