NSE:RECLTD · Risk Score Report

NSE:RECLTDNSEFinancial Services

REC Limited

📊 Credit Services

Day ₹358

₹372 Neutral

52W ₹304

₹432 Neutral

₹363.05

▼ ₹12.75 (-3.39%)

Vol: 11,886,643 · Avg: 9,160,550

As of April 29, 2026 · 06:28 IST

COMPOSITE RISK SCORE

VAL:24/25 · FIN:16/25 · GRO:8/25 · TECH:18/25

📈 P/E RATIO

5.6x

Trailing

📖 P/B RATIO

1.1x

Price to Book

💰 EPS

₹65.35

TTM

🏛 MARKET CAP

₹95,599Cr

Large Cap

📊 ROE

21.5%

Return on Equity

📈 REV GROWTH

2.3%

YoY

🏢 Company Analysis · REC Limited

💼 BUSINESS MODEL

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..
Operates in Credit Services within the Financial Services sector.

🏰 MOAT & COMPETITION

Large-cap (₹95,599 Cr) — established player with meaningful market presence.
ROE of 21.5% indicates strong competitive advantage and efficient capital deployment.
Profit margin of 72.2% suggests pricing power / cost moat.
Key competitors: Power Fin.Corpn., REC Ltd, I R F C, H U D C O.

🚀 CATALYSTS

No specific near-term catalysts identified from available data.

⚖️ ASYMMETRY CHECK

Analyst target range: ₹380 — ₹500 (mean ₹450, 13 analysts).
Favorable asymmetry — upside potential of +38% vs downside floor of +5% (8.1x reward-to-risk).
P/E of 5.6x — low valuation floor, limited downside from de-rating.

🔭 FUTURE OUTLOOK

Analyst consensus: None (13 analysts).
Latest quarter earnings change: -1% YoY — relatively flat.

✅ PROS

Stock is trading at 1.10 times its book value
Stock is providing a good dividend yield of 4.96%.
Company has been maintaining a healthy dividend payout of 29.9%

❌ CONS

Company has low interest coverage ratio.
The company has delivered a poor sales growth of 10.9% over past five years.
Company might be capitalizing the interest cost

VALUATION

24/25

25% WEIGHT

P/E at 6x
P/B at 1.1x
Analyst target: ₹450 (+23.9%)
1Y return: -11.1%

FINANCIAL HEALTH

16/25

25% WEIGHT

ROE: 21.5%
Profit margin: 72.2%
Revenue growth: 2.3%
Debt/Equity: 666%

GROWTH

8/25

25% WEIGHT

Revenue growth: 2.3%
Earnings growth: -0.6%
Beta: 0.33
Sector: Financial Services

TECHNICAL

18/25

25% WEIGHT

RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals

📈 Price Movement

🕯 Candlestick Chart

🎯 Price Prediction · Analyst Target Cone Source: Yahoo Finance Analyst Targets ↗

📉 Valuation Trends (at current CMP)

P/E Ratio at current CMP

💎 Valuation & Financial Metrics

P/E RATIO

5.6x

Trailing twelve months

P/B RATIO

1.1x

Price to Book value

ROE

21.5%

Return on Equity

PROFIT MARGIN

72.2%

Net profit margin

OPM

95.8%

Operating profit margin

ANALYST TARGET

₹450

Range: ₹380 - ₹500

Yahoo Finance ↗

PEG RATIO

0.45

Price/Earnings to Growth

EV/EBITDA

N/A

Enterprise value ratio

CURRENT RATIO

N/A

Liquidity measure

DIVIDEND YIELD

6.14%

Annual yield

ROA

2.5%

Return on Assets

GROSS MARGIN

98.8%

Gross profit margin

INDUSTRY AVERAGES — FINANCIAL INSTITUTION

P/E 20.1x (below avg)

P/B 3.0x (sector fair)

ROCE 9.5% (above avg)

ROE 18% (sector good)

OPM 30% (sector good)

Div Yield 2.06%

D/E <200 (sector comfort)

📋 Quarterly Performance Trend

Quarter	Revenue	QoQ %	Net Profit	QoQ %	Op. Cash Flow	EBITDA Margin
Q2 FY25	₹5,116 Cr	—	₹4,038 Cr	—	₹-10,149 Cr	N/A
Q3 FY25	₹5,356 Cr	+4.7%	₹4,076 Cr	+1.0%	₹-15,691 Cr	N/A
Q4 FY25	₹6,477 Cr	+20.9%	₹4,310 Cr	+5.7%	₹3,726 Cr	N/A
Q1 FY26	₹5,197 Cr	-19.8%	₹4,466 Cr	+3.6%	N/A	N/A
Q3 FY26	₹5,446 Cr	+4.8%	₹4,052 Cr	-9.3%	N/A	N/A

📊 Year-on-Year Trend

FY	Revenue	YoY %	Net Profit	YoY %	Op. Cash Flow	YoY %
FY22	₹16,369 Cr	—	₹10,036 Cr	—	₹-819 Cr	—
FY23	₹14,601 Cr	-10.8%	₹11,167 Cr	+11.3%	₹-37,360 Cr	-4464.3%
FY24	₹17,241 Cr	+18.1%	₹14,145 Cr	+26.7%	₹-57,723 Cr	-54.5%
FY25	₹21,900 Cr	+27.0%	₹15,884 Cr	+12.3%	₹-39,064 Cr	+32.3%

📈 Revenue vs Earnings

🎯 EPS: Estimate vs Actual

💰 How REC Limited Makes Its Money

🏦 Snapshot of REC Limited's Balance Sheet

💸 Looking into REC Limited's Cash Flow

📅 Quarterly Results Source: Screener ↗

	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026
Revenue +	11,688	12,052	12,677	13,079	13,682	14,272	15,334	14,737	15,153	15,051	14,564
YOY Sales Growth %	17.40%	23.21%	23.76%	17.78%	17.06%	18.42%	20.95%	12.68%	10.75%	5.46%	-5.02%
Interest	7,350	7,654	7,896	8,020	8,506	8,837	8,768	8,934	9,131	9,243	8,931
Expenses +	-492	240	-425	717	97	263	1,084	217	476	655	1,231
Employee Cost %	0.42%	0.58%	0.52%	0.48%	0.48%	0.38%	0.56%	0.43%	0.44%	0.47%	0.48%
Financing Profit	4,831	4,158	5,206	4,341	5,079	5,172	5,482	5,587	5,546	5,154	4,402
Financing Margin %	41%	34%	41%	33%	37%	36%	36%	38%	37%	34%	30%
Other Income +	13	20	29	14	24	15	15	87	10	-11	20
Exceptional items	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	-18.28	0.00
Other income normal	13.02	19.77	29.48	13.78	23.88	14.99	14.83	86.53	9.71	7.52	19.57
Depreciation	6	6	6	6	6	6	6	7	7	7	7
Profit before tax	4,838	4,172	5,229	4,349	5,097	5,181	5,490	5,666	5,549	5,136	4,415
Tax %	22%	21%	22%	20%	21%	21%	21%	21%	20%	21%	24%
Net Profit +	3,790	3,308	4,079	3,460	4,038	4,076	4,310	4,466	4,415	4,052	3,375
Exceptional items AT	0	0	0	0	0	0	0	0	0	-14	0
Profit excl Excep	3,790	3,308	4,079	3,460	4,038	4,076	4,310	4,466	4,415	4,067	3,375
Profit for PE	3,790	3,308	4,079	3,460	4,038	4,076	4,310	4,466	4,415	4,067	3,375
Profit for EPS	3,790	3,308	4,079	3,460	4,038	4,076	4,310	4,466	4,415	4,052	3,375
YOY Profit Growth %	39%	13%	33%	17%	7%	23%	6%	29%	9%	-0%	-22%
EPS in Rs	14.39	12.56	15.49	13.14	15.33	15.48	16.37	16.96	16.77	15.39	12.82
Gross NPA %
Net NPA %
Raw PDF

📊 Profit & Loss Statement Source: Screener ↗

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
Revenue +	22,658	25,408	29,942	35,556	39,276	39,486	47,517	56,369	59,584
Sales Growth %	-6.90%	12.13%	17.85%	18.75%	10.46%	0.53%	20.34%	18.63%	5.70%
Interest	13,333	15,639	18,991	21,489	22,051	23,733	29,948	34,131	36,238
Expenses +	3,379	1,702	3,981	3,292	4,838	1,858	-366	2,153	2,579
Manufacturing Cost %	0.65%	1.92%	8.37%	1.29%	2.31%	3.06%	0.81%	0.75%	0.00%
Employee Cost %	0.81%	0.70%	0.65%	0.46%	0.46%	0.52%	0.50%	0.48%	0.46%
Other Cost %	13.41%	4.09%	4.28%	7.51%	9.55%	1.13%	-2.08%	2.60%	3.87%
Financing Profit	5,946	8,066	6,969	10,776	12,387	13,894	17,936	20,084	20,767
Financing Margin %	26%	32%	23%	30%	32%	35%	38%	36%	35%
Other Income +	18	33	72	15	62	28	48	58	26
Exceptional items	-0.56	-0.86	-1.69	-4.03	29.22	-2.56	-4.24	-1.57	-18.28
Other income normal	18.61	33.57	74.02	18.95	32.55	30.09	52.55	59.46	44.19
Depreciation	7	8	12	11	18	24	24	25	27
Profit before tax	5,958	8,090	7,030	10,780	12,431	13,898	17,960	20,117	20,766
Tax %	25%	29%	29%	22%	19%	20%	21%	21%	21%
Net Profit +	4,451	5,741	4,972	8,378	10,036	11,167	14,145	15,884	16,308
Exceptional items AT	-0	-1	-1	-3	22	-2	-3	-1	-14
Profit excl Excep	4,451	5,742	4,973	8,381	10,014	11,169	14,149	15,885	16,323
Profit for PE	4,451	5,742	4,973	8,381	10,014	11,169	14,149	15,885	16,323
Profit for EPS	4,451	5,741	4,972	8,378	10,036	11,167	14,145	15,884	16,308
Profit Growth %	-29%	29%	-13%	69%	19%	12%	27%	12%	3%
EPS in Rs	16.90	21.80	18.88	31.82	38.11	42.41	53.72	60.32	61.93
Dividend Payout %	41%	38%	44%	30%	30%	30%	30%	30%	30%

🏦 Balance Sheet Source: Screener ↗

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
Equity Capital	1,975	1,975	1,975	1,975	1,975	2,633	2,633	2,633	2,633
Reserves	30,613	32,571	33,422	41,789	49,339	55,487	66,717	75,743	82,421
Borrowing	204,367	244,249	286,289	329,723	333,043	380,790	445,568	496,243	514,725
Other Liabilities +	5,416	19,659	25,345	27,380	26,503	26,592	33,273	39,883	40,378
Trade Payables	63	67	46	62	36	42	91	134	180
Advance from Customers	0	0	0	0	0	0	0	0
Other liability items	5,352	19,591	25,299	27,318	26,467	26,551	33,183	39,749	40,199
Total Liabilities	242,370	298,454	347,030	400,867	410,860	465,503	548,191	614,502	640,158
Fixed Assets +	132	165	166	267	628	641	632	629	616
Land	84.51	111.98	111.98	111.98	111.98	111.98	111.98	111.98
Building	34.10	34.22	36.87	130.40	430.83	456.90	456.90	454.44
Plant Machinery	0.00	0.00	0.00	0.00	19.90	20.06	20.45	20.45
Equipments	17.60	19.90	20.98	17.86	24.15	25.52	26.74	27.74
Computers	18.20	22.45	22.94	24.33	26.71	26.58	32.17	38.44
Furniture n fittings	9.38	10.99	11.99	20.89	67.75	67.69	67.27	67.04
Vehicles	0.40	0.40	0.40	0.40	0.40	0.54	0.71	0.50
Intangible Assets	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	2.01
Other fixed assets	12.48	17.39	13.75	13.81	14.81	14.72	14.71	18.78
Gross Block	176.67	217.33	218.91	319.67	696.53	723.99	730.93	739.37
Accumulated Depreciation	44.91	52.14	53.11	52.81	68.21	83.19	99.43	110.53
CWIP	129	199	288	336	6	3	24	76	128
Investments	2,948	2,463	2,386	1,981	2,190	3,170	5,352	6,674	9,831
Other Assets +	239,162	295,627	344,190	398,282	408,035	461,689	542,184	607,123	629,583
Inventories	0	0	0	0	0	0	0	0	0
Cash Equivalents	2,195	2,115	3,975	3,403	2,660	2,396	2,962	2,343	1,611
Loans n Advances	53	330	445	214	146	269	323	351	579,243
Other asset items	236,780	293,045	339,659	394,526	405,135	458,912	538,745	604,194	48,436
Total Assets	242,370	298,454	347,030	400,867	410,860	465,503	548,191	614,502	640,158

💰 Cash Flow Statement Source: Screener ↗

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
Cash from Operating Activity +	-32,510	-35,866	-32,712	-43,512	-819	-37,360	-57,723	-39,064	5,972
Profit from operations	8,814	8,733	10,801	13,546	16,390	14,932	15,202	18,949	20,250
Loans Advances	-37,475	-41,760	-41,665	-56,522	-9,877	-50,425	-75,017	-59,997	-20,570
Operating investments	-686	-1,622	-408	711	-2,511	790	-344	644	0
Stock on hire	0	0	0	0	0	0	0	0	7,012
Other WC items	-964	854	320	1,437	-1,743	17	5,708	5,573	2,895
Working capital changes	-39,124	-42,528	-41,752	-54,374	-14,131	-49,617	-69,653	-53,780	-10,663
Direct taxes	-2,200	-2,071	-1,777	-2,696	-3,101	-2,774	-3,272	-4,233	-3,616
Other operating items	0	0	17	12	23	100	0	0	0
Cash from Investing Activity +	46	457	121	861	-287	-943	-1,831	-1,302	-3,308
Fixed assets purchased	-75	-91	-100	-74	-48	-18	-34	-83	-70
Fixed assets sold	0	0	0	0	0	0	0	0	0
Capital WIP	0	0	0	0	0	0	0	0	-6
Investments purchased	-2	0	-90	0	0	-343	-913	0	0
Investments sold	96	24	25	250	431	10	67	352	40
Investment income	0	0	0	0	0	0	0	0	48
Interest received	221	158	231	0	0	0	0	0	0
Dividends received	27	20	37	0	0	0	0	0	0
Investment in group cos	0	0	0	0	0	0	0	0	-12
Redemp n Canc of Shares	0	0	0	0	1	0	0	16	0
Acquisition of companies	0	-0	0	-0	0	-1	-16	0	0
Inter corporate deposits	0	0	0	-3	-77	-138	0	0	0
Other investing items	-221	345	18	688	-594	-453	-936	-1,588	-3,307
Cash from Financing Activity +	28,244	35,543	33,926	42,113	68	38,123	59,588	40,034	-2,375
Proceeds from shares	0	0	0	0	0	0	0	0	0
Proceeds from debentures	0	4,221	21,293	16,058	0	14,836	27,474	30,749	10,770
Redemption of debentures	0	0	0	-1	-20,828	0	0	0	0
Proceeds from borrowings	3,015	34,363	20,522	31,154	23,367	26,452	35,152	38,497	26,294
Repayment of borrowings	0	0	-5,270	-2,925	-60	-44	-180	-23,603	-33,285
Interest paid fin	0	0	0	0	0	0	0	0	0
Dividends paid	-1,972	-2,516	-2,172	-2,172	-2,411	-3,120	-2,857	-5,609	-6,109
Financial liabilities	0	0	-1	-1	-0	-0	-0	0	0
Other financing items	27,201	-526	-446	0	0	-1	0	0	-44
Net Cash Flow	-4,220	134	1,336	-538	-1,038	-180	34	-333	289
Free Cash Flow	-32,584	-35,957	-32,812	-43,586	-867	-37,377	-57,756	-39,147	5,896
CFO/OP	-157%	-143%	-119%	-126%	7%	-92%	-114%	-64%	17%

📈 Key Financial Ratios

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
ROE %	13%	17%	14%	21%	21%	20%	22%	22%	20%

🏭 Industry Peers — Financial Institution

#	Company	CMP	P/E	Mkt Cap	ROCE	Qtr Profit	Score
1	Power Fin.Corpn. ★	₹466	6.1	₹153,801	9.7%	+8.1%	79
2	REC Ltd	₹362	5.9	₹95,362	9.7%	-21.7%	71
3	I R F C	₹105	19.7	₹137,755	5.8%	+10.5%	64
4	H U D C O	₹217	15.6	₹43,441	9.6%	-3.0%	62
5	Indian Renewable	₹138	20.6	₹38,795	9.4%	+37.5%	61
6	Tour. Fin. Corp.	₹73	27.8	₹3,381	10.7%	+40.6%	58
7	IFCI	₹59	86.7	₹16,002	5.0%	-93.5%	32
8	Guj. State Fin.	₹11	—	₹97	—	+3.6%	31
9	Haryana Fin. Co.	₹63	162.7	₹1,318	-1.2%	+1550.8%	20

★ Power Fin.Corpn. ranks higher on combined P/E, ROCE, and growth metrics in Financial Institution

🏛 Shareholding Pattern

	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026
Promoters	52.63%	52.63%	52.63%	52.63%	52.63%	52.63%
FIIs	21.74%	20.48%	19.16%	17.97%	16.46%	15.79%
DIIs	13.91%	14.79%	15.51%	15.86%	16.21%	16.36%
Government	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%
Public	11.67%	12.05%	12.65%	13.48%	14.64%	15.17%
No. of Shareholders	10,41,317	10,82,798	11,26,511	11,54,542	11,79,931	12,08,647

🟢 CATALYSTS

🏆Positive Revenue Growth: Revenue growing at 2.3% YoY.

💹High ROE (21.5%): Above sector norm of 18% — efficient capital use.

🔀Healthy Margins (72.2%): Above sector norm of 30%.

🇮Analyst Upside (24%): Mean target of ₹450 above current price.

🇳Low Beta (0.33): Less volatile than market — defensive play.

🔴 RISKS

📜High Debt/Equity (666%): Above sector threshold of 500% — leverage risk.

💰Market Risk: Broader market correction or sentiment shift could impact stock.

🔓Sector Risk: Regulatory or competitive changes in Financial Services space.

🕸 Factor Analysis · Radar

Momentum 8/10
1M +19.0%, 6M -3.8%, RSI 54, MACD bullish, Above 200DMA

Sentiment 7/10
Analyst upside +23.9%, Rec: none

Value 9/10
P/E 5.6, P/B 1.1, PEG 0.45

Quality 6/10
ROE 21.5%, Margin 72.2%, D/E 666

Low Volatility 9/10
Beta 0.33, Ann. vol 28%

🎯 Decision Matrix

Action	If Stock Rises	If Stock Falls
BUY	Capture 23.9% analyst upside	OPM of 96% provides margin buffer
HOLD	Retain existing position; wait for better entry; FII stake falling (-0.67%)	Miss further upside if momentum continues; 1M return of +19.0% shows momentum
SELL	Lock in -11.1% 1Y return	Avoid further drawdown

REASONS TO BUY

Analyst upside of 23.9% with mean target of ₹450
ROE of 21.5% above sector norm of 18%
Operating margin of 96% shows pricing power (sector norm: 30%)

REASONS TO SELL / AVOID

FII stake falling (-0.67%) — institutional exit signal
Debt/Equity at 666% exceeds sector comfort zone

📰 Latest News

No recent news available for this stock

RECOMMENDATION

SPECULATIVE BUY

COMPOSITE SCORE

66/100

REC Limited trades at ₹363.05 with a composite risk score of 66/100. The stock scores 24/25 on valuation, 16/25 on financial health, 8/25 on growth, and 18/25 on technicals. The company is currently profitable with strong return on equity.

Analyst consensus suggests upside of 23.9% with a mean target of ₹450. Revenue growth is at 2.3%.

Within Financial Institution, Power Fin.Corpn. (P/E 6.1, ROCE 9.7%) ranks higher on techno-fundamental metrics and may be worth considering.

Bottom Line: Positive for Financial Services but monitor closely. The current recommendation is SPECULATIVE BUY.

PROFITABLE HIGH ROE UPSIDE POTENTIAL CHEAP HIGH DEBT