REC Downgraded to 'Hold' by MarketsMOJO, But Strong Fundamentals and Positive Results Make it a Promising Long-Term Investment

REC, a largecap finance company, has recently been downgraded to a 'Hold' by MarketsMOJO on 2024-06-18. This decision was based on the company's strong long-term fundamental strength, with an average return on equity (ROE) of 17.72%.
In addition, REC has declared positive results for the last three consecutive quarters, with its net sales reaching a high of Rs 12,677.18 crore and its debt-equity ratio at a low of 6.43 times. Its PBDIT (profit before depreciation, interest, and taxes) also reached a high of Rs 13,101.73 crore.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend. With an ROE of 20.4, the stock is fairly valued with a price to book value of 2. It is also trading at a fair value compared to its average historical valuations.

Over the past year, REC has generated a return of 245.92%, while its profits have risen by 26.7%. This gives the company a PEG ratio of 0.4, indicating a good balance between its stock price and earnings growth.

Furthermore, REC has a high institutional holding of 35.41%, which suggests that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors. Their stake in the company has also increased by 0.6% over the previous quarter.

In terms of performance, REC has not only beaten the market in the long term, but also in the near term. It has generated a return of 245.92% in the last year and has outperformed the BSE 500 index in the last three years, one year, and three months.

Overall, while REC's stock has been downgraded to a 'Hold', the company's strong fundamentals, positive results, and market-beating performance make it a promising investment option for the long term.