Market Cap
₹198.2b
Last Updated
2020/10/30 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value average dividend payer.
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
Stable Share Price: RECLTD has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.5%
RECLTD
-0.9%
IN Diversified Financial
-1.6%
IN Market
1 Year Return
-27.4%
RECLTD
-27.2%
IN Diversified Financial
-2.2%
IN Market
Return vs Industry: RECLTD matched the Indian Diversified Financial industry which returned -27.3% over the past year.
Return vs Market: RECLTD underperformed the Indian Market which returned -2.5% over the past year.
Shareholder returns
| RECLTD | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | -0.9% | -1.6% |
| 30 Day | 3.8% | 0.02% | 1.7% |
| 90 Day | 2.7% | 3.9% | 6.2% |
| 1 Year | -21.8%-27.4% | -24.5%-27.2% | -0.4%-2.2% |
| 3 Year | -28.9%-42.8% | -47.4%-51.1% | -4.4%-9.0% |
| 5 Year | 25.6%-13.7% | 5.0%-12.4% | 40.4%29.8% |
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
4 days ago | Simply Wall St
How Much Of REC Limited (NSE:RECLTD) Do Institutions Own?1 month ago | Simply Wall St
Should You Buy REC Limited (NSE:RECLTD) For Its Dividend?3 months ago | Simply Wall St
How Much Did REC's(NSE:RECLTD) Shareholders Earn From Share Price Movements Over The Last Three Years?Valuation
Is REC undervalued compared to its fair value and its price relative to the market?
42.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RECLTD (₹102.85) is trading below our estimate of fair value (₹179.33)
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 (3.8x) compared to the IN Diversified Financial industry average (10.9x).
PE vs Market: RECLTD is good value based on its PE Ratio (3.8x) compared to the Indian market (16x).
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 (0.6x) is in line with the IN Diversified Financial industry average.
Next Steps
Future Growth
How is REC forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
22.0%
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.
Next Steps
- 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.
Past Performance
How has REC performed over the past 5 years?
-1.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RECLTD has high quality earnings.
Growing Profit Margin: RECLTD's current net profit margins (44.2%) are lower than last year (60.9%).
Past Earnings Growth Analysis
Earnings Trend: RECLTD's earnings have declined by 1.9% per year over the past 5 years.
Accelerating Growth: RECLTD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RECLTD 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: RECLTD's Return on Equity (15%) is considered low.
Next Steps
Financial Health
How is REC's financial position?
Financial Position Analysis
Short Term Liabilities: RECLTD's short term assets (₹3,420.5B) exceed its short term liabilities (₹696.2B).
Long Term Liabilities: RECLTD's short term assets (₹3,420.5B) exceed its long term liabilities (₹2,420.1B).
Debt to Equity History and Analysis
Debt Level: RECLTD's debt to equity ratio (812.5%) is considered high.
Reducing Debt: RECLTD's debt to equity ratio has increased from 597.7% to 812.5% 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
Next Steps
Dividend
What is REC current dividend yield, its reliability and sustainability?
10.70%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RECLTD's dividend (10.7%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).
High Dividend: RECLTD's dividend (10.7%) is in the top 25% of dividend payers in the Indian market (2.35%)
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 (40.9%), 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?
0.3yrs
Average management tenure
CEO
Sanjeev Gupta (59 yo)
0.33
Tenure
₹9,294,630
Compensation
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 ($USD124.89K) is below average for companies of similar size in the Indian market ($USD771.48K).
Compensation vs Earnings: Sanjeev's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.33yr | ₹9.29m | no data | |
| Executive Director | no data | ₹7.19m | 0.00011% ₹ 218.0k | |
| Director of Finance | 0.33yr | no data | 0.000010% ₹ 19.8k | |
| 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 |
0.3yrs
Average Tenure
59yo
Average Age
Experienced Management: RECLTD's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.33yr | ₹9.29m | no data | |
| Nominee Director | 1.33yrs | ₹180.00k | 0% ₹ 0 | |
| Government Nominee Director | 1.08yrs | no data | no data |
1.1yrs
Average Tenure
58yo
Average Age
Experienced Board: RECLTD's board of directors are not considered experienced ( 1.1 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 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: ₹198.183b
- Shares outstanding: 1.97b
- Website: https://www.recindia.nic.in
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 | 2020/10/30 12:42 |
| End of Day Share Price | 2020/10/30 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/03/31 |
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.