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 last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 136.890000
forwardPE 5.293807
debtToEquity 666.088000
earningsGrowth 0.094000
revenueGrowth 0.104000
grossMargins 0.989190
operatingMargins 0.965160
trailingEps 65.480000
forwardEps 68.259000

RECLTD's current ratio being 136.89 suggests the company will have no issues paying off its short-term debt. With sufficient cash reserves and current assets, RECLTD can easily cover its immediate liabilities, reflecting solid financial health.
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.
REC Limited's positive gross and operating margins highlight its profitability and operational efficiency. These strong margins demonstrate the company's ability to control costs while generating substantial revenue, contributing to a healthy financial performance.
RECLTD's forward EPS surpassing its trailing EPS signals that the company is anticipated to be more profitable this year than last. This growth expectation highlights RECLTD's potential for increased earnings and a stronger financial performance in the upcoming year.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Over time, RECLTD's price projections have been consistently revised lower. This suggests analysts are becoming less optimistic about the company's future prospects and are adjusting their forecasts accordingly.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


Recent analysis shows a strong buy bias for RECLTD, encouraging investors to view it as a solid investment option. The positive sentiment surrounding RECLTD suggests it could be an attractive place to allocate funds, motivating potential investors to consider the stock as a valuable part of their portfolio.