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 is projected to see a decline in revenue compared to last year, which could lead to investor caution. A drop in earnings is often viewed as a negative signal for profitability, making it more difficult for the company to maintain investor confidence in its financial health.

Financial Ratios:

currentRatio 9.878000
forwardPE 6.167953
debtToEquity 678.386000
earningsGrowth 0.232000
revenueGrowth 0.272000
grossMargins 0.992740
operatingMargins 0.946560
trailingEps 59.320000
forwardEps 67.700000

With a current ratio of 9.878, REC Limited has the liquidity needed to easily service its short-term debt. The company's cash reserves and current assets are sufficient, indicating that REC Limited is in a strong position to meet its immediate financial obligations without difficulty.
RECLTD's high debt-to-equity ratio indicates a strong reliance on debt, meaning the company is heavily leveraged. This could increase financial risks if cash flow or earnings decline, making it more difficult for RECLTD to manage its debt obligations.
RECLTD's positive earnings and revenue growth suggest the company is on a path to business expansion. This upward trend signals strong financial health, indicating that RECLTD is well-positioned for sustained growth in both profits and revenue.
RECLTD's positive gross and operating margins indicate that the company is performing profitably. These margins reflect efficient cost control and revenue generation, signaling a strong financial foundation for continued success.
REC Limited's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that REC Limited's financial performance will improve in the current financial year.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Over time, price projections for RECLTD have gradually risen, signaling growing optimism about the company's future. This upward revision reflects increasing confidence in RECLTD's ability to achieve strong financial results.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


The recent buy bias for RECLTD from analysts signals strong confidence in the stock's potential. This positive sentiment could encourage investors to see RECLTD as a smart place to invest their money, especially those looking for stable, long-term returns in a well-established company.