REC Ltd

Why is REC Ltd falling/rising?

As of 05-Aug, REC Ltd's stock price is at 363.30, reflecting a 1.09% decrease and significant underperformance over the past year with a return of -7.99%. Despite strong long-term fundamentals, recent metrics indicate a bearish outlook due to declining profits and investor participation.

As of 05-Aug, REC Ltd's stock price is falling, currently at 363.30, which reflects a decrease of 4.0 or 1.09%. The stock has underperformed the market significantly over the past year, generating a return of -7.99% compared to the BSE500's return of 3.58%. This underperformance is compounded by flat results reported for the quarter ending June 26, where both cash and cash equivalents and net sales were at their lowest levels.<BR><BR>Additionally, the stock has shown a decline in investor participation, with delivery volume falling by 9.99% against the 5-day average. Although the stock has a high dividend yield of 5.23%, which is attractive, it is trading at a premium compared to its peers' average historical valuations. The company’s profits have also decreased by 5% over the past year, further contributing to the negative sentiment surrounding the stock.<BR><BR>Despite having strong long-term fundamentals, indicated by an average return on equity (ROE) of 19.73% and high institutional holdings at 32.79%, the recent performance metrics and market conditions suggest a bearish outlook for REC Ltd, leading to its current decline in stock price.

Which are the latest news on REC Ltd?

Should I buy, sell or hold REC Ltd?

Are REC Ltd latest results good or bad?

REC Ltd's latest results show strong profitability with a net profit of ₹4,192.76 crores, up 24.23% from the previous quarter, but a decline in net interest income raises concerns about future revenue growth. Overall, the results are good in terms of profitability but mixed regarding revenue performance.

REC Ltd's latest results present a mixed picture. On one hand, the company experienced a decline in net interest income, which fell to ₹14,434.92 crores, marking a decrease of 0.89% from the previous quarter and 2.05% year-on-year. This represents the lowest quarterly revenue in recent times and signals challenges in loan disbursements and portfolio growth.<BR><BR>However, despite this revenue contraction, REC Ltd demonstrated strong profitability metrics. The net profit for the quarter stood at ₹4,192.76 crores, reflecting a significant quarter-on-quarter increase of 24.23%, although it was down 6.11% compared to the same quarter last year. The net profit margin improved to 29.05%, up from 23.17% in the previous quarter, showcasing effective margin management and operational efficiency.<BR><BR>Overall, while the company has managed to maintain robust profitability and improve its margins, the ongoing decline in net interest income and revenue growth raises concerns about its future performance. Thus, the results can be viewed as good in terms of profitability but concerning regarding revenue growth and market positioning.

When is the next results date for REC Ltd?

The next results date for REC Ltd is 24 July 2026.

The next results date for REC Ltd is scheduled for 24 July 2026.

How big is REC Ltd?

As of 10th June, REC Ltd has a market capitalization of 92,308.00 Cr, with recent net sales of 59,505.02 Cr and a net profit of 16,308.16 Cr.

As of 10th June, REC Ltd has a market capitalization of 92,308.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, REC Ltd reported Net Sales of 59,505.02 Cr and a Net Profit of 16,308.16 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 78,376.06 Cr and Total Assets valued at 611,633.13 Cr.

Who are in the management team of REC Ltd?

The management team of REC Ltd includes Vivek Kumar Dewangan (Chairman & Managing Director), Vijay Kumar Singh (Executive Director, Technical), Ajoy Choudhury (Executive Director, Finance), and several independent and nominee directors, totaling 11 key members who guide the company's strategic and operational management.

The management team of REC Ltd includes the following key members:<BR><BR>1. **Vivek Kumar Dewangan** - Chairman & Managing Director<BR>2. **Vijay Kumar Singh** - Executive Director (Technical)<BR>3. **Ajoy Choudhury** - Executive Director (Finance)<BR>4. **Piyush Singh** - Nominee (Government)<BR>5. **Manoj Sharma** - Nominee<BR>6. **Gambheer Singh** - Independent Director<BR>7. **Manoj Manohar Pande** - Independent Director<BR>8. **Durgesh Nandini Tiwari** - Independent Director<BR>9. **Narayanan Thirupathy** - Independent Director<BR>10. **Parminder Chopra** - Nominee<BR>11. **J S Amitabh** - Company Secretary<BR><BR>This team brings a diverse range of expertise to the company, contributing to its strategic direction and operational management.

Who are the peers of the REC Ltd?

Peers of REC Ltd include Power Fin. Corpn., I R F C, HUDCO, Indian Renewable, CreditAcc. Gram., IFCI, Tour. Fin. Corp., Muthoot Microfin, and Fusion Finance. REC Ltd has a good capital structure and a 1-year return of -18.48%, better than I R F C's -35.51% but worse than Tour. Fin. Corp.'s 62.26%.

Peers: The peers of REC Ltd are Power Fin.Corpn., I R F C, HUDCO, Indian Renewable, CreditAcc. Gram., IFCI, Tour. Fin. Corp., Muthoot Microfin, and Fusion Finance.<BR><BR>Quality Snapshot: Excellent management risk is observed at Power Fin.Corpn. and REC Ltd, while Average management risk is found at I R F C, HUDCO, Indian Renewable, Muthoot Microfin, and Fusion Finance, and the rest. Growth is Average for Power Fin.Corpn., I R F C, HUDCO, and CreditAcc. Gram., while Good growth is seen at Indian Renewable, and the rest. Capital Structure is Excellent at CreditAcc. Gram., while Good capital structure is noted at REC Ltd and HUDCO, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Tour. Fin. Corp. at 62.26%, while I R F C has the lowest at -35.51%. REC Ltd's 1-year return of -18.48% is worse than the highest but better than the lowest. Additionally, peers with negative six-month returns include I R F C, HUDCO, and Fusion Finance.

What does REC Ltd do?

REC Ltd is a Maharatna Central Public Sector Enterprise in India that provides financial assistance to the power sector. As of March 2026, it reported net sales of ₹14,564 Cr and a net profit of ₹3,375 Cr, with a market cap of ₹92,308 Cr.

Overview: <BR>REC Ltd is a leading 'Maharatna' Central Public Sector Enterprise in the finance industry, engaged in extending financial assistance across the power sector value chain.<BR><BR>History: <BR>REC Ltd was incorporated as a Government of India Enterprise and has been a key partner in India's power sector transformation. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 14,564 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 3,375 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 92,308 Cr (Mid Cap)<BR><BR>Key Metrics: <BR>P/E: 6.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 5.57% <BR>Debt Equity: 6.05 <BR>Return on Equity: 19.19% <BR>Price to Book: 1.09 <BR><BR>Contact Details: <BR>Address: Core-4 SCOPE Complex, 7 Lodi Road New Delhi New Delhi : 110003 <BR>Tel: 91-11-24365161 <BR>Email: complianceofficer@recl.in <BR>Website: http://www.recindia.gov.in

Has REC Ltd declared dividend?

Yes, REC Ltd has declared a dividend of 32% (₹4.6 per share) with an ex-date of March 20, 2026, and a dividend yield of 6.02%. While recent total returns have been volatile, longer-term returns over 3 to 5 years show significant growth.

REC Ltd has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 32%<BR>- Amount per share: 4.6<BR>- Ex-date: 20 Mar 26<BR><BR>Dividend Yield: 6.02%<BR><BR>Total Returns by Period:<BR>In the 3 Months period, the price return was 1.06%, the dividend return was 2.34%, resulting in a total return of 3.4%.<BR><BR>In the 6 Months period, the price return was -12.18%, the dividend return was 3.23%, leading to a total return of -8.95%.<BR><BR>In the 1 Year period, the price return was -18.26%, the dividend return was 5.22%, culminating in a total return of -13.04%.<BR><BR>In the 2 Years period, the price return was -24.45%, the dividend return was 9.99%, resulting in a total return of -14.46%.<BR><BR>In the 3 Years period, the price return was 184.93%, the dividend return was 47.20%, leading to a total return of 232.13%.<BR><BR>In the 4 Years period, the price return was 257.71%, the dividend return was 68.44%, culminating in a total return of 326.15%.<BR><BR>In the 5 Years period, the price return was 197.72%, the dividend return was 85.49%, resulting in a total return of 283.21%.<BR><BR>Overall, REC Ltd has declared a substantial dividend, and while recent total returns have shown volatility, the longer-term returns indicate significant growth, particularly in the 3, 4, and 5-year periods.

Is REC Ltd technically bullish or bearish?

As of December 3, 2025, REC Ltd. is in a bearish trend with moderate strength, indicated by bearish MACD, Bollinger Bands, and moving averages, despite some mixed signals from the KST.

As of 3 December 2025, the technical trend has changed from mildly bearish to bearish. The current stance is bearish with moderate strength. Key indicators driving this include a bearish MACD on the weekly chart, bearish Bollinger Bands on both weekly and monthly time frames, and a bearish moving average on the daily chart. Additionally, the Dow Theory indicates a mildly bearish trend on both weekly and monthly bases, while the KST shows mixed signals with a mildly bullish weekly reading but mildly bearish monthly. Overall, the combination of these indicators suggests a prevailing bearish sentiment for REC Ltd.

How has been the historical performance of REC Ltd?

REC Ltd has shown consistent growth in net sales, profits, and earnings per share from Mar'19 to Mar'25, with net sales increasing from 25,399.02 Cr to 56,366.55 Cr and profit after tax rising from 5,731.43 Cr to 15,884.23 Cr. However, despite this growth, cash flow from operating activities remained negative, indicating potential liquidity challenges.

Answer:<BR>The historical performance of REC Ltd shows a consistent growth in net sales and profits over the years, with net sales increasing from 25,399.02 Cr in Mar'19 to 56,366.55 Cr in Mar'25. The total operating income followed a similar trend, rising from 25,399.02 Cr in Mar'19 to 56,366.55 Cr in Mar'25. Operating profit (PBDIT) also saw significant growth, reaching 54,273.46 Cr in Mar'25 from 23,727.98 Cr in Mar'19. Profit before tax increased from 8,080.49 Cr in Mar'19 to 20,117.47 Cr in Mar'25, while profit after tax rose from 5,731.43 Cr to 15,884.23 Cr in the same period. The earnings per share (EPS) improved from 29.07 in Mar'19 to 60.32 in Mar'25, reflecting strong profitability. On the balance sheet, total liabilities increased from 3,44,979.51 Cr in Mar'20 to 6,11,633.13 Cr in Mar'25, with total assets also rising from 3,44,979.51 Cr to 6,11,633.13 Cr. However, cash flow from operating activities remained negative, indicating challenges in cash generation despite the growth in profits.<BR><BR>Breakdown:<BR>REC Ltd has demonstrated robust growth in its financial metrics over the years, with net sales climbing steadily from 25,399.02 Cr in Mar'19 to 56,366.55 Cr in Mar'25, indicating a strong upward trend in revenue generation. The total operating income mirrored this growth, reaching 56,366.55 Cr in Mar'25. Operating profit (PBDIT) also saw a significant increase, from 23,727.98 Cr in Mar'19 to 54,273.46 Cr in Mar'25, showcasing improved operational efficiency. Profit before tax and profit after tax followed suit, with figures rising from 8,080.49 Cr to 20,117.47 Cr and from 5,731.43 Cr to 15,884.23 Cr, respectively. The earnings per share (EPS) reflected this profitability surge, increasing from 29.07 to 60.32. On the balance sheet, total liabilities and total assets both grew substantially, from 3,44,979.51 Cr to 6,11,633.13 Cr, indicating a significant expansion in the company's financial base. Despite these positive trends, the cash flow from operating activities remained negative, highlighting potential liquidity challenges amidst the growth in profits.

Is REC Ltd overvalued or undervalued?

As of November 18, 2025, REC Ltd is considered overvalued with a PE Ratio of 5.47, an EV to EBIT of 10.53, and a Dividend Yield of 5.49%, despite a low PEG Ratio of 0.34 suggesting potential undervaluation relative to growth, while it has underperformed the Sensex with a year-to-date return of -28.28%.

As of 18 November 2025, the valuation grade for REC Ltd has moved from fair to expensive. This indicates that the company is currently overvalued. Key financial ratios include a PE Ratio of 5.47, an EV to EBIT of 10.53, and a Dividend Yield of 5.49%. <BR><BR>In comparison to peers, REC Ltd's PE Ratio is significantly lower than that of Bajaj Finance, which stands at 34.46, and higher than Life Insurance, which has a PE of 11.34. The PEG Ratio of REC Ltd at 0.34 suggests it may be undervalued relative to its growth, but the overall valuation indicates it is overvalued compared to its peers. Additionally, REC Ltd has underperformed against the Sensex with a year-to-date return of -28.28% compared to the Sensex's 8.36%.

Who are the top shareholders of the REC Ltd?

The top shareholders of REC Ltd include Power Finance Corporation Ltd with 52.63%, Foreign Institutional Investors at 20.48%, mutual funds holding 8.85%, individual investors at 9.94%, and Nippon Life India Trustee Ltd with 1.38%. There are no pledged promoter holdings.

The top shareholders of REC Ltd include the following:<BR><BR>1. **Power Finance Corporation Ltd** - This entity holds the largest stake among promoters, with a significant ownership of 52.63%.<BR>2. **Foreign Institutional Investors (FIIs)** - They collectively hold 20.48% of the company's shares, represented by 824 different FIIs.<BR>3. **Mutual Funds** - A total of 40 mutual fund schemes hold 8.85% of the shares.<BR>4. **Individual Investors** - They account for 9.94% of the shareholding.<BR>5. **Highest Public Shareholder** - Nippon Life India Trustee Ltd, acting on behalf of Nippon India Growth Fund, holds 1.38%.<BR><BR>There are no pledged promoter holdings, indicating a strong position among the major shareholders.

What is the bonus history of the REC Ltd?

REC Ltd's recent bonus history includes a 1:3 bonus issued on August 17, 2022, and a 1:1 bonus issued on September 28, 2016, demonstrating the company's commitment to rewarding shareholders.

REC Ltd has a notable bonus history. The most recent bonus issue was a 1:3 bonus, which was announced with an ex-date of August 17, 2022, and the record date was August 18, 2022. Prior to that, the company issued a 1:1 bonus on September 28, 2016, with a record date of September 29, 2016. This reflects REC Ltd's commitment to rewarding its shareholders through bonus shares over the years.