REC Ltd

Which are the latest news on REC Ltd?

Why is REC Ltd falling/rising?

As of 23-Jun, REC Ltd's stock price is declining to Rs 361.95, down 2.12% due to disappointing financial results and low cash reserves. Despite a high dividend yield and strong long-term fundamentals, the stock is viewed as expensive, leading to cautious investor sentiment.

As of 23-Jun, REC Ltd's stock price is falling, currently at Rs 361.95, which reflects a decrease of Rs 7.85 or 2.12%. This decline can be attributed to several negative factors highlighted in the recent performance data. Notably, the company reported disappointing financial results for the quarter ending March 26, with a profit after tax (PAT) of Rs 3,375.08 crore, which represents a significant drop of 21.8% compared to the previous four-quarter average. Additionally, the company's cash and cash equivalents have reached their lowest point at Rs 1,611.09 crore, and net sales have also decreased to Rs 14,563.82 crore.<BR><BR>Despite some positive indicators, such as a high dividend yield of 5.3% and strong long-term fundamental strength with an average return on equity (ROE) of 19.73%, the stock is perceived as expensive. It is trading at a price-to-book value of 1.1, which is above the average historical valuations of its peers. Over the past year, while the stock has generated a return of -8.85%, its profits have only increased by 2.8%, leading to a high price-to-earnings growth (PEG) ratio of 2.1. <BR><BR>Moreover, the stock underperformed its sector by 0.92% today and touched an intraday low of Rs 361, indicating a lack of investor confidence. Although there has been rising investor participation with a significant increase in delivery volume, the overall sentiment remains cautious due to the recent negative financial results and the stock's premium valuation compared to its peers.

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

Are REC Ltd latest results good or bad?

REC Ltd's latest Q4 FY26 results are concerning, showing a 21.69% year-on-year decline in net profit and deteriorating profitability metrics, leading to a negative outlook and a 'SELL' rating from analysts. Despite a decent return on equity, the overall performance indicates significant challenges ahead.

REC Ltd's latest results for Q4 FY26 indicate a troubling performance. The company reported a net profit of ₹3,375.08 crores, which represents a significant decline of 21.69% year-on-year and a 16.71% decrease from the previous quarter. Additionally, interest income fell by 5.02% year-on-year to ₹14,563.82 crores, marking the lowest quarterly revenue in the past year.<BR><BR>Profitability metrics also showed deterioration, with operating margins dropping to 91.55% from 92.93% in the same quarter last year, and the profit after tax margin declining to 23.17% from 28.11%. This trend has led to a negative financial outlook, with a 'SELL' rating from analysts and an overall score of 38 out of 100 on the proprietary scoring system.<BR><BR>While the company maintains a respectable return on equity of 19.88% and appears attractively valued at a price-to-book ratio of 1.18, the declining operational performance raises concerns about the sustainability of these metrics. Overall, the results suggest that REC Ltd is currently facing significant headwinds, and the outlook appears negative.

Should I buy, sell or hold REC Ltd?

When is the next results date for REC Ltd?

The next results date for REC Ltd is 28 April 2026.

The next results date for REC Ltd is scheduled for 28 April 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.