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 expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.

Financial Ratios:

currentRatio 9.878000
forwardPE 6.474184
debtToEquity 678.386000
earningsGrowth 0.232000
revenueGrowth 0.272000
grossMargins 0.992740
operatingMargins 0.946560
trailingEps 59.320000
forwardEps 67.700000

RECLTD's current ratio 9.878, suggesting the company has sufficient liquidity to service its short-term debt. With its cash reserves and current assets in good shape, RECLTD can comfortably meet its immediate liabilities, reflecting a healthy financial standing.
RECLTD's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
RECLTD's positive earnings and revenue growth suggest that the company is expected to expand its business. This reflects a healthy financial outlook, as RECLTD's increasing profits and sales signal further growth in the near future.
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 surpasses its trailing EPS, reflecting expectations of higher profitability in the current year. This suggests that RECLTD is projected to generate stronger earnings, indicating an optimistic financial outlook compared to the prior year's results.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Over time, price projections for RECLTD have been gradually revised upward, reflecting increasing optimism about the company's future performance. This trend suggests analysts are growing more confident in RECLTD's ability to deliver strong results and achieve higher market value.

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.