BSE:532955

Stock Analysis Report

Executive Summary

REC Limited, a public financial institution, provides financing services for power generation, transmission, and distribution projects in India.

Snowflake

Fundamentals

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has REC's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

532955

5.5%

IN Diversified Financial

3.8%

IN Market


1 Year Return

25.4%

532955

3.5%

IN Diversified Financial

6.0%

IN Market

Return vs Industry: 532955 exceeded the Indian Diversified Financial industry which returned 3.5% over the past year.

Return vs Market: 532955 exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

532955IndustryMarket
7 Day6.0%5.5%3.8%
30 Day1.1%-1.6%2.9%
90 Day-12.8%-8.4%2.9%
1 Year35.9%25.4%5.7%3.5%8.2%6.0%
3 Year15.2%-6.2%2.8%-5.7%23.0%16.7%
5 Year28.4%-8.3%21.4%-5.6%43.6%30.0%

Price Volatility Vs. Market

How volatile is REC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is REC undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532955 (₹130.4) is trading below our estimate of fair value (₹273.1)

Significantly Below Fair Value: 532955 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532955 is good value based on its PE Ratio (4.5x) compared to the Diversified Financial industry average (13.8x).

PE vs Market: 532955 is good value based on its PE Ratio (4.5x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 532955 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 532955 is overvalued based on its PB Ratio (0.7x) compared to the IN Diversified Financial industry average (0.5x).


Next Steps

Future Growth

How is REC forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532955's forecast earnings growth (14.5% per year) is above the savings rate (7.6%).

Earnings vs Market: 532955's earnings (14.5% per year) are forecast to grow slower than the Indian market (18% per year).

High Growth Earnings: 532955's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532955's revenue (11.5% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 532955's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532955's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has REC performed over the past 5 years?

0.08%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532955's earnings have grown by 0.08% per year over the past 5 years.

Accelerating Growth: 532955's earnings growth over the past year (21.1%) exceeds its 5-year average (0.08% per year).

Earnings vs Industry: 532955 earnings growth over the past year (21.1%) exceeded the Diversified Financial industry 12.3%.


Return on Equity

High ROE: 532955's Return on Equity (16.7%) is considered low.


Return on Assets

ROA vs Industry: 532955's Return on Assets is below or equal to the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 532955's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is REC's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 532955 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532955's debt is covered by short term assets (assets are 1.117340x debt).


Financial Institutions Analysis

Asset Level: 532955's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 532955 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532955 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 532955 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532955 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 532955 has an appropriate level of bad loans.


Next Steps

Dividend

What is REC's current dividend yield, its reliability and sustainability?

8.76%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage3.2%forecastin3Years8.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 532955's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532955's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 532955's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532955's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532955 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532955's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of REC's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

REC has no CEO, or we have no data on them.


Management Age and Tenure

4.0yrs

Average Tenure

59yo

Average Age

Experienced Management: 532955's management team is considered experienced (4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

61yo

Average Age

Experienced Board: 532955's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹43,360,29207 Mar 19
India
EntityCompany
Shares4,336,057
Max Price₹10.00

Ownership Breakdown


Management Team

  • Vijay Arora (66yo)

    Additional General Manager of Finance

    • Tenure: 0yrs
  • Ashok Awasthi (60yo)

    Executive Director of Administration & Estate

    • Tenure: 0yrs
  • Ajeet Agarwal (59yo)

    Director of Finance & Director

    • Tenure: 7.2yrs
    • Compensation: ₹8.18m
  • S. Gaikward (58yo)

    Executive Director of Project Monitoring Division

    • Tenure: 0yrs
  • Rameswar Vaishnaw

    General Manager of F&A

    • Tenure: 0yrs
    • Compensation: ₹2.72m
  • Sanjeev Gupta (58yo)

    Director of Technical & Whole-Time Director

    • Tenure: 4.8yrs
    • Compensation: ₹8.24m
  • Jyoti Amitabh

    Executive Director

    • Tenure: 0yrs
    • Compensation: ₹7.03m
  • S. Batta

    General Manager of Legal & PIO-RTI

    • Tenure: 0yrs
  • Daljeet Khatri

    GM of Finance & Accounts and Chief Risk Officer

    • Tenure: 0yrs
  • Sunita Singh

    Chief Vigilance Officer

    • Tenure: 2.6yrs

Board Members

  • Ajeet Agarwal (59yo)

    Director of Finance & Director

    • Tenure: 7.2yrs
    • Compensation: ₹8.18m
  • Aravamudan Kumar (65yo)

    Part Time Non-Official Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹740.00k
  • Sanjeev Gupta (58yo)

    Director of Technical & Whole-Time Director

    • Tenure: 4.8yrs
    • Compensation: ₹8.24m
  • Asha Swarup (69yo)

    Part Time Non-Official Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹660.00k
  • Tiruvallur Ram Mohan (63yo)

    Part Time Non-Official Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹560.00k
  • Bhagvat Karad

    Part Time Non-Official Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹420.00k
  • Praveen Singh (57yo)

    Nominee Director

    • Tenure: 0.3yrs
  • Mritunjay Narayan

    Government Nominee Director

    • Tenure: 0.08yrs

Company Information

REC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: REC Limited
  • Ticker: 532955
  • Exchange: BSE
  • Founded: 1969
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: ₹257.727b
  • Shares outstanding: 1.97b
  • Website: https://www.recindia.nic.in

Number of Employees


Location

  • REC Limited
  • Core-4
  • SCOPE Complex
  • New Delhi
  • Delhi
  • 110003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532955BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2008
RECLTDNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2008

Biography

REC Limited, a public financial institution, provides financing services for power generation, transmission, and distribution projects in India. It primarily offers long-term loans, medium-term Loans, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.