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REC Limited
NSE:RECLTD

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REC Limited Logo
REC Limited
NSE:RECLTD
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Price: 452.3 INR 1.5%
Updated: Mar 28, 2024

Intrinsic Value

REC Ltd. engages in the provision of financial services. [ Read More ]

The intrinsic value of one RECLTD stock under the Base Case scenario is 760.42 INR. Compared to the current market price of 452.3 INR, REC Limited is Undervalued by 41%.

Key Points:
RECLTD Intrinsic Value
Base Case
760.42 INR
Undervaluation 41%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
REC Limited

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Fundamental Analysis

REC's Boosted Earnings and Renewables Focus
2024-Q3 Earnings Call

REC's Boosted Earnings and Renewables Focus

In Q3 FY'24, REC Limited saw a robust 20% growth in assets under management, now at INR 497,466 crores with a year-on-year increase of 21%. Approvals and sanctions skyrocketed by 69%, and disbursements are expected to surpass INR 150,000 crores by March '24. The company's total income and profit after tax both surged by 19% and 24%, respectively. Net NPA decreased to 0.82% with 20 of 36 stressed assets resolved. REC's focus has shifted towards renewable energy, supported by the Indian government's Rooftop Solar Mission. A target of INR 10 lakh crores in asset under management by 2030 is set, with renewable energy making up 30%. Expansion into non-power infrastructure & logistics with a stringent asset quality criterion has also begun, promising growth without increasing NPAs.

Financials

Balance Sheet Decomposition
REC Limited

Current Assets 265.8B
Cash & Short-Term Investments 15.1B
Receivables 250.3B
Other Current Assets 379.5m
Non-Current Assets 5.1T
Long-Term Investments 46.5B
PP&E 6.4B
Intangibles 6.2m
Other Non-Current Assets 5T
Current Liabilities 622.7B
Accounts Payable 610.8m
Accrued Liabilities 125.6m
Short-Term Debt 351.6B
Other Current Liabilities 270.3B
Non-Current Liabilities 4.1T
Long-Term Debt 4T
Other Non-Current Liabilities 23.9B
Efficiency

Earnings Waterfall
REC Limited

Revenue
447.6B INR
Cost of Revenue
-287.7B INR
Gross Profit
160B INR
Operating Expenses
-6B INR
Operating Income
154B INR
Other Expenses
-22.7B INR
Net Income
131.3B INR

Free Cash Flow Analysis
REC Limited

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
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Fundamental Scores

RECLTD Profitability Score
Profitability Due Diligence

REC Limited's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

Positive Operating Income
Positive Gross Profit
Positive 3-Year Average ROE
Positive Net Income
52/100
Profitability
Score

REC Limited's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

RECLTD Solvency Score
Solvency Due Diligence

REC Limited's solvency score is 24/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Positive Net Debt
High D/E
24/100
Solvency
Score

REC Limited's solvency score is 24/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

RECLTD Price Targets Summary
REC Limited

Wall Street analysts forecast RECLTD stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for RECLTD is 550.29 INR with a low forecast of 479.75 INR and a high forecast of 611.1 INR.

Lowest
Price Target
479.75 INR
6% Upside
Average
Price Target
550.29 INR
22% Upside
Highest
Price Target
611.1 INR
35% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

RECLTD Price
REC Limited

1M 1M
+6%
6M 6M
+61%
1Y 1Y
+296%
3Y 3Y
+473%
5Y 5Y
+479%
10Y 10Y
+981%
Annual Price Range
452.3
52w Low
114.1
52w High
509.85
Price Metrics
Average Annual Return 12.29%
Standard Deviation of Annual Returns 18.14%
Max Drawdown -48%
Shares Statistics
Market Capitalization 1.2T INR
Shares Outstanding 2 634 092 400
Percentage of Shares Shorted
N/A

RECLTD Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

REC Limited Logo
REC Limited

Country

India

Industry

Financial Services

Market Cap

1.2T INR

Dividend Yield

0%

Description

REC Ltd. engages in the provision of financial services. The company is headquartered in Gurgaon, Haryana. The company went IPO on 2008-12-03. The firm's main business is to provide finance to power sector. The firm's principal products include interest-bearing loans to state electricity boards, state power utilities/state power departments and private sector for all segments of power infrastructure. The company is engaged in financing projects and schemes of various power sector value chain, including generation (both conventional and renewable energy), transmission, distribution, rural electrification and activities having forward or backward linkage with power projects. The company provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through its network of approximately 22 offices. The firm also acts as the nodal agency or project implementing agency for various schemes and programs of the Ministry of Power, Government of India.

Contact

HARYANA
Gurgaon
Plot No. I-4, Sector 29,, Near IFFCO Chowk Metro Station,
+911244441300
https://www.recindia.nic.in/home

IPO

2008-12-03

Employees

366

Officers

Director of Finance, Chairman & MD
Mr. Vivek Kumar Dewangan I.A.S.
Executive Director of Law & Company Secretary
Mr. Jyoti Shubhra Amitabh
Director of Projects & Director
Mr. Vijay Kumar Singh
Chief Compliance Officer
Mr. Hemant Kumar
Executive Director of Finance
Mr. Rameswar Prasad Vaishnaw
Executive Director
Ms. Taruna Gupta
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Executive Director of Technical
Mr. Fuzail Ahmed
Executive Director of Finance & CEO of RECPDCL
Mr. Rajesh Kumar
Chief Risk Officer & Executive Director of Finance
Ms. Malathi Sundararajan
Show Less

See Also

Discover More
What is the Intrinsic Value of one RECLTD stock?

The intrinsic value of one RECLTD stock under the Base Case scenario is 760.42 INR.

Is RECLTD stock undervalued or overvalued?

Compared to the current market price of 452.3 INR, REC Limited is Undervalued by 41%.