Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Credit Services

REC Limited, together with its subsidiaries, engages in the provision of financing services for power generation, transmission, and distribution projects in India. The company primarily offers long, medium, and short-terms loans; debt refinancing, equity financing, financing of equipment manufacturing for power sector and coal mines; policy for funding against regulatory assets, and revolving bill payment facility services; and provides letter of undertaking in lieu of bank guarantee, etc. It also acts as a nodal agency for the implementation of Pradhan Mantri Sahaj Bijli Har Ghar Yojana, Pradhan Mantri Surya Ghar Muft Bujli Yojana, Deen Dayal Upadhyaya Gram Jyoti Yojana, and National Electricity Fund. In addition, the company acts as the bid process coordinator for selection of transmission service provider through tariff based competitive bidding process for independent inter-state and intra-state transmission projects; provides project implementation and consultancy services in power sector; and operates National Feeder Monitoring System, a cloud-based IT and analytical platform, designed to monitor the reliability and quality of power. It serves central/state government power utilities, as well as private sector power utilities. The company was formerly known as Rural Electrification Corporation Limited and changed its name to REC Limited in October 2018. REC Limited was incorporated in 1969 and is based in Gurugram, India. REC Limited is a subsidiary of Power Finance Corporation Limited.

Revenue projections:

Revenue projections for RECLTD
Revenue projections for RECLTD

Investors are expected to be cautious with REC Limited, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 136.890000
forwardPE 5.293807
debtToEquity 666.088000
earningsGrowth 0.094000
revenueGrowth 0.104000
grossMargins 0.989190
operatingMargins 0.965160
trailingEps 65.480000
forwardEps 68.259000

RECLTD's current ratio of 136.89 highlights the company's ability to easily cover its short-term debt using its available cash and assets. This indicates a strong liquidity position, ensuring RECLTD is unlikely to face difficulties in meeting immediate financial obligations.
RECLTD's elevated debt-to-equity ratio shows that the company is relying heavily on debt to fund its activities. This high leverage can amplify returns but also heightens financial risks if cash flow becomes constrained.
REC Limited's positive gross and operating margins suggest the company is performing profitably. These margins reflect efficient cost management and strong revenue generation, signaling healthy financial performance and operational effectiveness.
RECLTD's forward EPS is higher than its trailing EPS, suggesting the company is expected to improve its profitability this financial year. This reflects growing confidence in RECLTD's earnings potential, with forecasts indicating better financial performance than in the prior year.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Over time, RECLTD's price projections have consistently been revised lower. This downward shift suggests analysts are becoming more cautious about the company's future, possibly due to emerging risks or challenges.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


Analysts' recent buy bias toward RECLTD suggests the stock is gaining favor as a strong investment choice. This optimism could drive more investors to see RECLTD as a smart place to invest, further bolstering confidence in the company's long-term growth and potential returns.