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

REC Limited's revenue projections show a decrease from last year, which tends to make investors more cautious. This could have a negative impact on the company's bottom line, as lower revenues typically suggest reduced profitability and growth potential, prompting concern among investors.

Financial Ratios:

currentRatio 0.000000
forwardPE 5.477259
debtToEquity 666.365000
earningsGrowth 0.291000
revenueGrowth 0.048000
grossMargins 0.988790
operatingMargins 0.961380
trailingEps 64.030000
forwardEps 67.700000

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 positive gross and operating margins suggest strong profitability. These margins reflect effective cost management and revenue generation, indicating that the company is efficiently managing its operations and maintaining financial health.
With a forward EPS greater than its trailing EPS, RECLTD is forecasted to be more profitable this year than last. This growth expectation reflects confidence in the company's earnings potential and suggests an improving financial trajectory for the year ahead.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Price projections for REC Limited have been gradually lowered, signaling reduced optimism among analysts. This downward adjustment suggests that the company may face challenges in meeting previous growth expectations.

Recommendation changes over time:

Recommendations trend for RECLTD
Recommendations trend for RECLTD


A recent buy bias from analysts toward RECLTD may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that RECLTD might be an appealing option for those looking to grow their wealth through stock market investments.