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 is projected to see a decline in revenue compared to last year, which could lead to investor caution. A drop in earnings is often viewed as a negative signal for profitability, making it more difficult for the company to maintain investor confidence in its financial health.

Financial Ratios:

currentRatio 282.504000
forwardPE 4.777778
debtToEquity 607.463000
earningsGrowth -0.219000
revenueGrowth -0.144000
grossMargins 0.986300
operatingMargins 0.902340
trailingEps 61.810000
forwardEps 71.100000

RECLTD's current ratio of 282.504 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that RECLTD is financially well-prepared to meet its liabilities without difficulty.
RECLTD's elevated debt-to-equity ratio suggests the company is highly leveraged, meaning it has significant debt compared to equity. This can be risky, particularly if RECLTD's cash flow or profits decrease, making it harder to meet debt obligations.
RECLTD's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
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

The current price of RECLTD, relative to its projections, shows no clear risks or opportunities. This neutral assessment may encourage investors to take a cautious approach, awaiting further developments before making substantial changes.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


Recent analysis shows a strong buy bias for REC Limited, encouraging investors to view it as a solid investment option. The positive sentiment surrounding REC Limited suggests it could be an attractive place to allocate funds, motivating potential investors to consider the stock as a valuable part of their portfolio.