| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
RECLTD Overview
REC Limited, a public financial institution, provides financing services for power generation, transmission, and distribution projects in India.
REC Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | ₹151.60 |
| 52 Week High | ₹91.80 |
| 52 Week Low | ₹167.80 |
| Beta | 0.85 |
| 1 Month Change | 3.62% |
| 3 Month Change | 6.01% |
| 1 Year Change | 48.48% |
| 3 Year Change | 48.63% |
| 5 Year Change | 22.36% |
| Change since IPO | 149.96% |
Recent News & Updates
Should You Or Shouldn't You: A Dividend Analysis on REC Limited (NSE:RECLTD)
Is REC Limited ( NSE:RECLTD ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings...
Shareholder Returns
| RECLTD | IN Diversified Financial | IN Market | |
|---|---|---|---|
| 7D | 0.2% | 6.2% | 0.8% |
| 1Y | 48.5% | 134.1% | 67.5% |
Return vs Industry: RECLTD underperformed the Indian Diversified Financial industry which returned 134.1% over the past year.
Return vs Market: RECLTD underperformed the Indian Market which returned 67.5% over the past year.
Price Volatility
| RECLTD volatility | |
|---|---|
| RECLTD Beta | 0.85 |
| Industry Beta | 1.17 |
| Market Beta | 1 |
Stable Share Price: RECLTD is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RECLTD's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1969 | 468 | Sanjay Malhotra | https://www.recindia.nic.in |
REC Limited, a public financial institution, provides financing services for power generation, transmission, and distribution projects in India. It primarily offers term-loan, medium-term loan, and short-terms loan. The company also acts as a nodal agency for the implementation of Pradhan Mantri Sahaj Bijli Har Ghar Yojana for universal household electrification, Deen Dayal Upadhyaya Gram Jyoti Yojana, National Electricity Fund, Outage Management System, and 11kv Rural Feeder Monitoring Scheme, as well as 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; and provides implementation and consultancy services in power sector.
REC Fundamentals Summary
| RECLTD fundamental statistics | |
|---|---|
| Market Cap | ₹301.37b |
| Earnings (TTM) | ₹88.02b |
| Revenue (TTM) | ₹151.96b |
3.4x
P/E Ratio2.0x
P/S RatioIs RECLTD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RECLTD income statement (TTM) | |
|---|---|
| Revenue | ₹151.96b |
| Cost of Revenue | ₹1.13b |
| Gross Profit | ₹150.83b |
| Expenses | ₹62.82b |
| Earnings | ₹88.02b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 44.57 |
| Gross Margin | 99.26% |
| Net Profit Margin | 57.92% |
| Debt/Equity Ratio | 811.1% |
How did RECLTD perform over the long term?
See historical performance and comparisonDividends
8.4%
Current Dividend Yield29%
Payout RatioValuation
Is REC undervalued compared to its fair value and its price relative to the market?
40.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RECLTD (₹151.6) is trading below our estimate of fair value (₹254.45)
Significantly Below Fair Value: RECLTD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RECLTD is good value based on its PE Ratio (3.4x) compared to the Indian Diversified Financial industry average (15.1x).
PE vs Market: RECLTD is good value based on its PE Ratio (3.4x) compared to the Indian market (20.7x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RECLTD's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RECLTD's PB Ratio (0.7x) is in line with the IN Diversified Financial industry average.
Future Growth
How is REC forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
24.9%
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.
Past Performance
How has REC performed over the past 5 years?
9.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RECLTD has high quality earnings.
Growing Profit Margin: RECLTD's current net profit margins (57.9%) are higher than last year (44.2%).
Past Earnings Growth Analysis
Earnings Trend: RECLTD's earnings have grown by 9.4% per year over the past 5 years.
Accelerating Growth: RECLTD's earnings growth over the past year (65.8%) exceeds its 5-year average (9.4% per year).
Earnings vs Industry: RECLTD earnings growth over the past year (65.8%) exceeded the Diversified Financial industry 22.5%.
Return on Equity
High ROE: Whilst RECLTD's Return on Equity (20.11%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is REC's financial position?
Financial Position Analysis
Short Term Liabilities: RECLTD's short term assets (₹3,960.0B) exceed its short term liabilities (₹193.9B).
Long Term Liabilities: RECLTD's short term assets (₹3,960.0B) exceed its long term liabilities (₹3,377.2B).
Debt to Equity History and Analysis
Debt Level: RECLTD's debt to equity ratio (811.1%) is considered high.
Reducing Debt: RECLTD's debt to equity ratio has increased from 585.5% to 811.1% over the past 5 years.
Debt Coverage: RECLTD's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if RECLTD's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is REC current dividend yield, its reliability and sustainability?
8.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RECLTD's dividend (8.38%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).
High Dividend: RECLTD's dividend (8.38%) is in the top 25% of dividend payers in the Indian market (1.45%)
Stability and Growth of Payments
Stable Dividend: RECLTD's dividend payments have been volatile in the past 10 years.
Growing Dividend: RECLTD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.5%), RECLTD'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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Sanjay Malhotra (52 yo)
0.83
Tenure
₹1,193,650
Compensation
Mr. Sanjay Malhotra, IAS, serves as Chairman and Managing Director at REC Ltd. since November 9, 2020. Mr. Malhotra was Government Nominee Director at Power Grid Corporation of India Limited since January...
CEO Compensation Analysis
Compensation vs Market: Sanjay's total compensation ($USD16.17K) is below average for companies of similar size in the Indian market ($USD598.36K).
Compensation vs Earnings: Insufficient data to compare Sanjay's compensation with company performance.
Leadership Team
Experienced Management: RECLTD's management team is considered experienced (2.9 years average tenure).
Board Members
Experienced Board: RECLTD's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Ownership
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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
REC Limited's employee growth, exchange listings and data sources
Key Information
- Name: REC Limited
- Ticker: RECLTD
- Exchange: NSEI
- Founded: 1969
- Industry: Specialized Finance
- Sector: Diversified Financials
- Market Cap: ₹301.372b
- Shares outstanding: 1.97b
- Website: https://www.recindia.nic.in
Number of Employees
Location
- REC Limited
- Plot No. I-4, Sector 29
- Near IFFCO Chowk Metro Station
- Gurugram
- Haryana
- 122001
- India
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 12:04 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/03/31 |
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.