Is REC Ltd overvalued or undervalued?

Oct 11 2025 08:07 AM IST
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As of October 10, 2025, REC Ltd is fairly valued with a PE Ratio of 5.82 and has underperformed the Sensex with a stock return of -31.45%, indicating it may be undervalued compared to peers like Bajaj Finance.
As of 10 October 2025, the valuation grade for REC Ltd has moved from very attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 5.82, a Price to Book Value of 1.25, and an EV to EBITDA of 10.51.

In comparison to its peers, REC Ltd's PE Ratio is significantly lower than that of Bajaj Finance, which stands at 36.56, indicating that REC Ltd is trading at a much cheaper valuation relative to this competitor. Additionally, Life Insurance, which is rated very attractive, has an EV to EBITDA of 9.08, suggesting that REC Ltd is on par with some of its peers in terms of value. Notably, REC Ltd has underperformed the Sensex significantly over the past year, with a stock return of -31.45% compared to the Sensex's 1.09%, reinforcing the notion that the stock may be undervalued in the current market environment.
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