Market Cap
₹257.7b
Last Updated
2019/10/19 12:42 UTC
Data Sources
Company Financials +
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
6.1%
RECLTD
5.5%
IN Diversified Financial
3.9%
IN Market
1 Year Return
25.3%
RECLTD
3.5%
IN Diversified Financial
6.0%
IN Market
Return vs Industry: RECLTD exceeded the Indian Diversified Financial industry which returned 3.5% over the past year.
Return vs Market: RECLTD exceeded the Indian Market which returned 6% over the past year.
Shareholder returns
| RECLTD | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.1% | 5.5% | 3.9% |
| 30 Day | 3.6% | 2.0% | 7.8% |
| 90 Day | -11.6% | -8.7% | 2.5% |
| 1 Year | 35.8%25.3% | 5.7%3.5% | 8.2%6.0% |
| 3 Year | 15.1%-6.3% | 2.8%-5.7% | 23.0%16.7% |
| 5 Year | 28.5%-8.2% | 21.4%-5.6% | 43.5%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
1 year ago | Simply Wall St
What Should Investors Know About Rural Electrification Corporation Limited's (NSE:RECLTD) Growth?1 year ago | Simply Wall St
Should You Be Happy With Rural Electrification Corporation Limited's (NSE:RECLTD) Performance Lately?1 year ago | Simply Wall St
Should You Buy Rural Electrification Corporation Limited (NSE:RECLTD) Now?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
Undervalued: RECLTD (₹130.5) is trading below our estimate of fair value (₹273.31)
Significantly Undervalued: 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 (4.5x) compared to the Diversified Financial industry average (17x).
PE vs Market: RECLTD is good value based on its PE Ratio (4.5x) compared to the Indian market (13.3x).
Price to Earnings Growth Ratio
Low PEG Ratio: RECLTD is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: RECLTD 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: RECLTD's forecast earnings growth (14.5% per year) is above the savings rate (7.6%).
Earnings vs Market: RECLTD's earnings (14.5% per year) are forecast to grow slower than the Indian market (18.2% per year).
High Growth Earnings: RECLTD's earnings are forecast to grow, but not significantly.
Revenue vs Market: RECLTD's revenue (11.5% per year) is forecast to grow faster than the Indian market (11.3% per year).
High Growth Revenue: RECLTD's revenue (11.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: RECLTD'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: RECLTD's earnings have grown by 0.08% per year over the past 5 years.
Accelerating Growth: RECLTD's earnings growth over the past year (21.1%) exceeds its 5-year average (0.08% per year).
Earnings vs Industry: RECLTD earnings growth over the past year (21.1%) exceeded the Diversified Financial industry 13.6%.
Return on Equity
High ROE: RECLTD's Return on Equity (16.7%) is considered low.
Return on Assets
ROA vs Industry: RECLTD'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 RECLTD'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: RECLTD has a low level of unsold assets or inventory.
Debt Coverage by Assets: RECLTD's debt is covered by short term assets (assets are 1.117340x debt).
Financial Institutions Analysis
Asset Level: RECLTD's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if RECLTD has a sufficient allowance for bad loans.
Low Risk Liabilities: RECLTD reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if RECLTD has an acceptable proportion of non-loan assets held.
Low Risk Deposits: RECLTD has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if RECLTD 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
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate RECLTD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate RECLTD'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 RECLTD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RECLTD's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: RECLTD is not paying a notable dividend for the Indian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RECLTD'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: RECLTD's management team is considered experienced (4 years average tenure).
Board Age and Tenure
3.3yrs
Average Tenure
61yo
Average Age
Experienced Board: RECLTD'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
| Entity | Company |
| Shares | 4,336,057 |
| 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: RECLTD
- Exchange: NSEI
- 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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 12:42 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/03/31 |
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.