REC Limited (RECLTD) AI Stock Analysis

• Market Cap: ₹1.00T
• Dividend Yield: 5.01%
• Average Volume (3M): 369.86K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.55
• Revenue Growth: 20.32%
• EPS Growth: 15.42%
• Country: IN
• Employees: 512
• Sector: Financial
• Sector Strength: 69
• Industry: Financial - Credit Services
• EPS (TTM): 16.90
• Shares Outstanding: 2,633,224,000
• 10 Day Avg. Volume: 166,397
• 30 Day Avg. Volume: 369,862
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹504.80
• Price Target Upside: 32.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: ₹429.00 ▲(12.76% Upside)

REC Limited's strong valuation and financial performance are the primary strengths, offering both growth potential and income. However, technical indicators and cash flow challenges indicate a need for caution. Addressing liquidity and leverage issues will be key to improving the stock's outlook.

REC Limited Business Overview & Revenue Model

Company Description

REC Limited (RECLTD) is a public sector enterprise in India, primarily engaged in financing and promoting power sector projects across the country. The company operates under the administrative control of the Ministry of Power. Its core services include providing financial assistance to state electricity boards, state governments, central and state power utilities, independent power producers, rural electric cooperatives, and private sector utilities. REC Limited plays a crucial role in the development of the power sector by offering term loans, short-term loans, and other financial products tailored to the needs of the energy sector.

How the Company Makes Money

REC Limited generates revenue primarily through the interest income it earns from the loans and financial services provided to its clients in the power sector. The company offers a range of financial products, including long-term and short-term loans, which carry varying interest rates based on market conditions and borrower profiles. A significant portion of its income is derived from the interest spread, which is the difference between the interest rate charged to borrowers and the cost of funds for REC Limited. Additionally, the company may earn fees and commission income from consultancy services and project appraisals. Strategic partnerships with government bodies and private sector players also enhance its ability to secure large-scale power projects, contributing to its revenue growth.

REC Limited Financial Statement Overview

Summary

REC Limited shows strong revenue and profit growth, reflected in the high Income Statement score. However, the high debt-to-equity ratio and negative cash flows present risks. Addressing these issues is crucial for maintaining financial stability.

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	469.06B	559.11B	189.46B	386.92B	384.19B	351.46B
Gross Profit	298.44B	217.83B	172.52B	368.16B	163.68B	136.57B
EBITDA	306.98B	201.42B	179.84B	360.80B	334.45B	316.13B
Net Income	158.84B	158.84B	141.45B	111.67B	100.36B	83.78B
Balance Sheet
Total Assets	6.15T	6.15T	5.48T	4.66T	4.11T	4.01T
Cash, Cash Equivalents and Short-Term Investments	6.32B	6.32B	4.98B	487.00M	1.41B	12.86B
Total Debt	4.96T	4.96T	4.46T	3.81T	3.33T	3.30T
Total Liabilities	5.36T	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	-187.72B	-391.46B	-577.56B	-373.77B	-39.58B	-435.87B
Operating Cash Flow	-186.89B	-390.64B	-577.23B	-373.60B	-39.10B	-435.12B
Investing Cash Flow	-216.76B	-13.02B	-18.31B	-9.43B	-2.87B	8.61B
Financing Cash Flow	400.34B	400.34B	595.88B	381.23B	31.59B	421.13B

REC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 380.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 380.45 is below the 20-day moving average (MA) of 385.00, below the 50-day MA of 388.37, and below the 200-day MA of 425.97, indicating a bearish trend. The MACD of -3.27 indicates Positive momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.30 is Positive, 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	76 Outperform	₹1.26T	6.46		3.48%	7.78%	2.18%
PNB	74 Outperform	₹1.23T	7.32		2.71%	15.52%	37.23%
Sector *	69 Neutral	CHF15.00B	15.85	12.54%	3.67%	-0.59%	25.03%
RECLTD	69 Neutral	₹1.00T	5.94		5.01%	20.32%	15.42%
PFC	68 Neutral	₹1.35T	5.56		4.06%	14.06%	17.29%
IRFC	65 Neutral	₹1.64T	24.58		1.84%	2.06%	3.45%
SHRIRAMFIN	62 Neutral	₹1.18T	12.15		2.09%	20.27%	25.95%

REC Limited Corporate Events

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.

REC Limited Schedules Investor Conference Call to Discuss Q1FY26 Earnings

REC Limited has announced an upcoming conference call scheduled for July 31, 2025, to discuss its financial results for the quarter ended June 30, 2025. This call will provide investors and analysts with insights into the company’s recent performance, potentially impacting its market positioning and stakeholder interests. The audio recording and transcript of the call will be made available on the company’s website.