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

RECLTD's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

Financial Ratios:

currentRatio 136.890000
forwardPE 5.130091
debtToEquity 666.088000
earningsGrowth 0.094000
revenueGrowth 0.104000
grossMargins 0.989190
operatingMargins 0.965160
trailingEps 65.460000
forwardEps 67.700000

RECLTD's current ratio of 136.89 indicates strong liquidity, meaning the company can comfortably meet its short-term debt obligations. This financial position reflects RECLTD's ability to use its cash reserves and current assets to cover liabilities without facing any cash flow issues.
RECLTD's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
Positive gross and operating margins for RECLTD highlight the company's profitability. These metrics reflect RECLTD's efficiency in controlling costs while generating strong revenue from its core operations, signaling robust financial health.
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

RECLTD's price projections have been revised downward over time, reflecting a shift in sentiment among analysts. The steady decline in projections points to a more cautious outlook on the company's future performance.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


Analysts are favoring REC Limited with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider REC Limited as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.