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

REC Limited's revenues are expected to fall below last year's, and this forecast tends to raise concerns among investors. A revenue drop can negatively impact the company's profitability, making investors more cautious about their positions due to the risks of declining financial performance.

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 solid liquidity, indicating that it can easily service its short-term debt. RECLTD's ample cash reserves and current assets ensure that the company is well-positioned to meet its immediate financial liabilities.
REC Limited's elevated debt-to-equity ratio suggests the company is leveraging debt heavily, increasing its financial risk. While this can support growth, it could also lead to challenges if the company's profitability or cash flow weakens.
With positive gross and operating margins, RECLTD's profitability is evident. These metrics suggest the company is efficiently managing its expenses while maintaining strong revenue, highlighting a solid financial foundation.
With RECLTD's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in RECLTD's growth potential, as improved earnings are forecasted compared to the prior year's performance.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Price projections for REC Limited have been revised lower over time, signaling a more cautious outlook from analysts. The gradual downward trend indicates that expectations for the company's growth may be softening.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


REC Limited has received a favorable buy bias from analysts recently, positioning it as a solid investment opportunity. This sentiment may attract more investors, who view REC Limited as a stable option to park their money and potentially benefit from the company's continued growth and profitability.