REC Limited, a public financial institution, provides financing services for power generation, transmission, and distribution projects in India. More Details
Good value average dividend payer.
Share Price & News
How has REC's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 532955 has not had significant price volatility in the past 3 months.
7 Day Return
IN Diversified Financial
1 Year Return
IN Diversified Financial
Return vs Industry: 532955 underperformed the Indian Diversified Financial industry which returned -23.6% over the past year.
Return vs Market: 532955 underperformed the Indian Market which returned 2.2% over the past year.
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
Is REC undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 532955 (₹98.8) is trading below our estimate of fair value (₹176.61)
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 (3.7x) compared to the IN Diversified Financial industry average (10.5x).
PE vs Market: 532955 is good value based on its PE Ratio (3.7x) compared to the Indian market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 532955's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 532955's PB Ratio (0.6x) is in line with the IN Diversified Financial industry average.
How is REC forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Diversified Financials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as REC has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether REC is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- REC competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
How has REC performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 532955 has high quality earnings.
Growing Profit Margin: 532955's current net profit margins (44.2%) are lower than last year (60.9%).
Past Earnings Growth Analysis
Earnings Trend: 532955's earnings have declined by 1.9% per year over the past 5 years.
Accelerating Growth: 532955's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 532955 had negative earnings growth (-8.1%) over the past year, making it difficult to compare to the Diversified Financial industry average (-3.9%).
Return on Equity
High ROE: 532955's Return on Equity (15%) is considered low.
How is REC's financial position?
Financial Position Analysis
Short Term Liabilities: 532955's short term assets (₹3,420.5B) exceed its short term liabilities (₹696.2B).
Long Term Liabilities: 532955's short term assets (₹3,420.5B) exceed its long term liabilities (₹2,420.1B).
Debt to Equity History and Analysis
Debt Level: 532955's debt to equity ratio (812.5%) is considered high.
Reducing Debt: 532955's debt to equity ratio has increased from 597.7% to 812.5% over the past 5 years.
Debt Coverage: 532955's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if 532955's interest payments on its debt are well covered by EBIT.
What is REC current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 532955's dividend (10.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).
High Dividend: 532955's dividend (10.96%) is in the top 25% of dividend payers in the Indian market (2.28%)
Stability and Growth of Payments
Stable Dividend: 532955's dividend payments have been volatile in the past 10 years.
Growing Dividend: 532955's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.9%), 532955's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjeev Gupta (59 yo)
Mr. Sanjeev Kumar Gupta serves as Chairman & Managing Director at REC Ltd. since June 1, 2020. He has been Director of Technical and Whole-Time Director of REC Limited (Formerly REC Ltd. (formerly known as ...
CEO Compensation Analysis
Compensation vs Market: Sanjeev's total compensation ($USD125.91K) is below average for companies of similar size in the Indian market ($USD775.42K).
Compensation vs Earnings: Sanjeev's compensation has been consistent with company performance over the past year.
|Executive Director||no data||₹7.19m||0.00011% |
|Director of Finance||0.33yr||no data||0.000010% |
|Chief General Manager of Finance & Accounts||no data||no data||no data|
|Executive Director of Administration & Estate||no data||no data||no data|
|Executive Director of Law||no data||no data||no data|
|Executive Director of HR & CC||no data||no data||no data|
|Chief Risk Officer||0.33yr||no data||no data|
|Chief Vigilance Officer||3.58yrs||no data||no data|
|Executive Director of Project Monitoring Division||no data||no data||no data|
|General Manager of Vigilance||no data||no data||no data|
|Additional General Manager of General||no data||₹3.94m||no data|
Experienced Management: 532955's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
|Nominee Director||1.33yrs||₹180.00k||0% |
|Government Nominee Director||1.08yrs||no data||no data|
Experienced Board: 532955's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
REC Limited's company bio, employee growth, exchange listings and data sources
- Name: REC Limited
- Ticker: 532955
- Exchange: BSE
- Founded: 1969
- Industry: Specialized Finance
- Sector: Diversified Financials
- Market Cap: ₹198.183b
- Shares outstanding: 1.97b
- Website: https://www.recindia.nic.in
- REC Limited
- SCOPE Complex
- New Delhi
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|532955||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Mar 2008|
|RECLTD||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Mar 2008|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/26 12:54|
|End of Day Share Price||2020/10/26 00:00|
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.