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

The projected decline in RECLTD's revenues compared to last year is expected to make investors cautious. A drop in revenue often has a direct negative effect on the company's bottom line, signaling potential challenges that could undermine investor confidence and reduce overall profitability.

Financial Ratios:

currentRatio 9.878000
forwardPE 6.167953
debtToEquity 678.386000
earningsGrowth 0.232000
revenueGrowth 0.272000
grossMargins 0.992740
operatingMargins 0.946560
trailingEps 59.320000
forwardEps 67.700000

RECLTD's current ratio is 9.878, signaling that the company has sufficient cash reserves and current assets to cover its short-term debt obligations. This suggests financial stability, as RECLTD should not face any issues meeting its short-term liabilities with available resources.
REC Limited's high debt-to-equity ratio points to a heavily leveraged company, with more debt than equity in its capital structure. While this can boost growth, it increases financial vulnerability in times of economic difficulty.
REC Limited's positive earnings and revenue growth reflect a strong outlook for the company's business expansion. The company is expected to continue growing, with increasing profitability and sales driving further growth in the near future.
RECLTD's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
With a forward EPS greater than its trailing EPS, REC Limited is expected to see higher profitability this year. The forecasted increase in earnings reflects optimism about the company's financial growth and potential for improved performance over the prior year.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

RECLTD's price projections have steadily risen over time, pointing to increasing optimism about the company's prospects. This upward revision suggests that analysts expect RECLTD to continue delivering solid performance in the future.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


Analysts' buy bias for RECLTD signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to RECLTD, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.