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

Investors are expected to be cautious with RECLTD, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 282.504000
forwardPE 5.247454
debtToEquity 607.463000
earningsGrowth -0.219000
revenueGrowth -0.144000
grossMargins 0.986300
operatingMargins 0.902340
trailingEps 61.820000
forwardEps 69.490840

RECLTD's current ratio of 282.504 highlights the company's ability to easily cover its short-term debt using its available cash and assets. This indicates a strong liquidity position, ensuring RECLTD is unlikely to face difficulties in meeting immediate financial obligations.
RECLTD's high debt-to-equity ratio indicates significant leverage, meaning the company has more debt compared to its equity. While this can accelerate growth, it also increases financial risk if revenue or profits decline.
RECLTD's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
RECLTD's positive gross and operating margins reflect its profitability and efficiency. These metrics demonstrate the company's ability to manage costs effectively while generating strong revenue, highlighting its solid financial health and operational effectiveness.
With REC Limited'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 REC Limited'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 aligns with projections, showing no clear risks or opportunities. This lack of volatility suggests a stable environment for investors, who may wish to hold off on major adjustments until market conditions change.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


RECLTD has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as RECLTD is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.