REC Receives 'Buy' Rating and Shows Strong Performance in Multiple Areas

REC, a leading finance and NBFC company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is 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) has also reached a high of Rs 13,101.73 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since June 7, 2024. Multiple factors, such as MACD, KST, and OBV, indicate a bullish trend for the stock.

Moreover, with an ROE of 20.4, the stock is fairly valued with a price to book value of 1.9. It is also trading at a fair value compared to its historical valuations. In the past year, the stock has generated a return of 239.11%, while its profits have increased by 26.7%. The PEG ratio of the company is also at a low of 0.4.

Another positive aspect of REC is its high institutional holdings at 35.41%. These investors have better capabilities and resources to analyze the fundamentals of companies compared to retail investors. In fact, their stake in REC has increased by 0.6% over the previous quarter.

Overall, REC has shown a market-beating performance with a return of 239.11% in the last year, significantly higher than the market (BSE 500) returns of 35.28%. With its strong fundamentals, positive technical trend, fair valuation, and high institutional holdings, REC is a promising stock to consider for investment.