REC Ltd

Which are the latest news on REC Ltd?

Why is REC Ltd falling/rising?

As of 05-Sep, REC Ltd's stock price is rising to Rs 319.50, driven by a 1.85% increase and strong fundamentals, including a high dividend yield and solid ROE. However, the stock has declined 12.30% over the past year and faces challenges such as reduced investor participation and flat financial performance.

As of 05-Sep, REC Ltd's stock price is rising, currently at Rs 319.50, reflecting a change of Rs 5.8 or 1.85%. This increase can be attributed to several factors. Firstly, the stock has outperformed its sector by 0.77% today, indicating a relative strength compared to its peers. Additionally, the stock touched an intraday high of Rs 320.1, which is a 2.04% increase from its previous price.<BR><BR>Despite a recent decline in investor participation, with delivery volume falling by 27.07% against the 5-day average, the stock maintains a high dividend yield of 5.77%, which can attract income-focused investors. Furthermore, REC Ltd has strong long-term fundamental strength, evidenced by an average Return on Equity (ROE) of 19.73% and high institutional holdings at 32.79%, which have increased by 0.6% over the previous quarter. These institutional investors typically have better resources to analyze the company's fundamentals, which can provide confidence to the market.<BR><BR>However, it is important to note that the stock has experienced a decline of 12.30% over the past year and has underperformed against benchmarks like the BSE500 in various time frames. The company's recent financial results showed flat performance, with cash and cash equivalents at their lowest and net sales also declining. This context of mixed performance suggests that while the stock is currently rising, there are underlying challenges that could affect its future trajectory.

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. This team is responsible for the company's governance and management.

The management team of REC Ltd includes the following key individuals:<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 plays a crucial role in the governance and management of the company.

What does REC Ltd do?

REC Ltd is a Maharatna Central Public Sector Enterprise in India that provides financial assistance across the power sector. As of June 2026, it reported net sales of ₹14,435 Cr and a net profit of ₹4,193 Cr, with a market cap of ₹83,263 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 are for June 2026, showcasing the company's performance in net sales and profit.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 14,435 Cr (Quarterly Results - Jun 2026) <BR>Most recent Net Profit: 4,193 Cr (Quarterly Results - Jun 2026) <BR>Market-cap value: INR 83,263 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>P/E: 5.00 <BR>Industry P/E: 21 <BR>Dividend Yield: 5.72% <BR>Debt Equity: 6.05 <BR>Return on Equity: 19.19% <BR>Price to Book: 0.98 <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

Who are the peers of the REC Ltd?

Peers of REC Ltd include Power Fin. Corpn., I R F C, HUDCO, Indian Renewable, and others. REC Ltd has average management risk and growth, with a 1-year return of -10.03%, better than I R F C but worse than IFCI, which has the highest return at 75.70%.

Peers: The peers of REC Ltd are Power Fin.Corpn., I R F C, HUDCO, Indian Renewable, IFCI, CreditAcc. Gram., Tour. Fin. Corp., Muthoot Microfin, Fusion Finance, and Satin Creditcare.<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. Below Average management risk is noted at IFCI and Tour. Fin. Corp. Good growth is seen at Indian Renewable, CreditAcc. Gram., and the rest, while Average growth is observed at I R F C, HUDCO, and REC Ltd, and Below Average growth is noted at Power Fin.Corpn., Muthoot Microfin, and Fusion Finance. Excellent capital structure is present at IFCI, CreditAcc. Gram., Tour. Fin. Corp., and the rest, while Good capital structure is found at REC Ltd and HUDCO, and Average capital structure is noted at Power Fin.Corpn., I R F C, and Indian Renewable.<BR><BR>Return Snapshot: The peer with the highest 1-year return is IFCI at 75.70%, while the lowest is I R F C at -29.47%. REC Ltd's 1-year return of -10.03% is better than I R F C but worse than IFCI. Additionally, peers with negative six-month returns include Power Fin.Corpn., I R F C, and HUDCO.

How big is REC Ltd?

As of 31st August, REC Ltd has a market capitalization of 83,263.00 Cr, with recent Net Sales of 59,202.49 Cr and a Net Profit of 16,035.21 Cr.

As of 31st August, REC Ltd has a market capitalization of 83,263.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, REC Ltd reported Net Sales of 59,202.49 Cr and a Net Profit of 16,035.21 Cr.<BR><BR>The latest annual period for the balance sheet is March 2026, with Shareholder's Funds amounting to 85,054.40 Cr and Total Assets of 6,36,618.41 Cr.

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.

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.