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

RECLTD's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
Positive gross and operating margins for RECLTD demonstrate the company's profitability. These margins reflect strong financial performance, with efficient operations contributing to the company's ability to generate consistent profits.
RECLTD's forward EPS being higher than its trailing EPS points to expected growth in profitability. This suggests that the company is projected to perform better in the current financial year, with higher earnings forecasted compared to the previous year.

Price projections:

Price projections for RECLTD
Price projections for RECLTD

Price projections for RECLTD have been revised down over time, reflecting a less optimistic outlook. Analysts appear to be adjusting their expectations, signaling concerns about the company's ability to sustain its previous growth levels.

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.