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 revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 0.000000
forwardPE 5.477259
debtToEquity 666.365000
earningsGrowth 0.291000
revenueGrowth 0.048000
grossMargins 0.988790
operatingMargins 0.961380
trailingEps 64.030000
forwardEps 67.700000

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.
RECLTD's positive gross and operating margins indicate the company's ability to operate profitably. These margins reflect strong financial management, with efficient cost control contributing to sustained profitability and a solid financial outlook.
RECLTD's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that RECLTD is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Price projections for RECLTD have been gradually lowered, signaling reduced optimism among analysts. This downward adjustment suggests that the company may face challenges in meeting previous growth expectations.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


The analysts' recent buy bias for RECLTD indicates strong confidence in the stock's future performance. This could encourage more investors to view RECLTD as a worthwhile investment, positioning the company as a top choice for those seeking financial security and long-term growth opportunities.