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

With RECLTD's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 0.000000
forwardPE 5.530908
debtToEquity 666.088000
earningsGrowth -0.006000
revenueGrowth 0.023000
grossMargins 0.988240
operatingMargins 0.958260
trailingEps 65.380000
forwardEps 67.620000

RECLTD's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
RECLTD's low growth in earnings and revenue indicates that profits could shrink. This signals potential financial difficulties for the company, suggesting that its profitability might be under pressure.
REC Limited's positive gross and operating margins indicate healthy profitability. These margins reflect the company's ability to generate income efficiently from its operations, signaling strong financial performance and effective cost management.
REC Limited's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting REC Limited to generate stronger earnings compared to the previous financial year.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

RECLTD's price projections have gradually declined, indicating growing uncertainty about the company's ability to meet previous targets. The downward trend reflects a more conservative view of RECLTD's future.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


Analysts have been favoring RECLTD with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning RECLTD as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.