Risk factor
Weak & very vulnerable to price shocks
Profitability factor
Excellent dividends
About
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. It serves central/state government power utilities, as well as private sector power utilities. The company was formerly known as Rural Electrification Corporation Limited and changed its name to REC Limited in October 2018. REC Limited was incorporated in 1969 and is based in Gurugram, India. REC Limited is a subsidiary of Power Finance Corporation Limited.
Company Valuation
From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. In particular, the stock is underpriced on P/E, undervalued on P/RIBP
Target Price
The average target price of RECLTD.NS is 525 and suggests 51% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in
Buy
Sell