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 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 13.698000
forwardPE 5.528429
debtToEquity 666.365000
earningsGrowth 0.066000
revenueGrowth 0.073000
grossMargins 0.990040
operatingMargins 0.939170
trailingEps 60.190000
forwardEps 67.700000

RECLTD's current ratio being 13.698 suggests that the company has no issue servicing its short-term debt. Its strong liquidity position, supported by sufficient cash reserves and current assets, ensures that RECLTD can meet its financial obligations with ease.
RECLTD's elevated debt-to-equity ratio highlights its heavy reliance on debt. This high leverage increases the company's exposure to financial risk, making it more vulnerable to market fluctuations and economic downturns.
RECLTD's positive gross and operating margins highlight its strong profitability. The company's ability to control costs while generating revenue indicates efficient operations and a healthy financial position.
RECLTD's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Price projections for REC Limited have consistently been revised upward, indicating positive sentiment toward the company. This gradual adjustment reflects growing confidence in REC Limited's future potential and financial outlook among analysts.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


A recent buy bias from analysts toward RECLTD indicates strong confidence in the stock's future performance. This could encourage investors to park their money in RECLTD, viewing it as a stable and potentially rewarding investment opportunity with promising long-term growth prospects.