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1. Is REC Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that REC Ltd is a good quality company.
2. Is REC Ltd undervalued or overvalued?
The key valuation ratios of REC Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.
3. Is REC Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of REC Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
|Operating Income (₹ Cr.)||17,018||20,230||23,638||23,587||22,455||25,310||29,813||35,388||39,132||39,208||40,707|
|YoY Gr. Rt. %||-||18.9%||16.9%||-0.2%||-4.8%||12.7%||17.8%||18.7%||10.6%||0.2%||-|
|Adj EPS (₹ )||17.8||20||21.4||23.7||16.8||21.9||18.6||31.8||38.2||42||43.9|
|YoY Gr. Rt. %||-||12.3%||7%||11%||-29.2%||30.4%||-15.2%||71.1%||20.2%||10%||-|
|BVPS (₹ )||78.5||94.4||108.7||126.6||122.7||130.3||133.2||162.8||191.5||216.9||228.2|
|YoY Gr. Rt. %||-||20.3%||15.1%||16.5%||-3.1%||6.2%||2.3%||22.2%||17.6%||13.3%||-|
|To view Net Profit/Total Funds (%) Colour Rating Guide click here ⓘ|
|Net Profit/Total Funds (%)||3.2||3.1||2.8||2.9||2||2.1||1.5||2.2||2.5||2.5||0|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Net Interest Income||9.7%||11.8%||9.6%||0.2%|
Key Financial Ratios
|RATIOS \ YEARS||Mar'14||Mar'15||Mar'16||Mar'17||Mar'18||Mar'19||Mar'20||Mar'21||Mar'22||Mar'23||TTM|
|Asset Quality Ratio||To view Asset Quality Ratio Colour Rating Guide click here ⓘ|
|Net NPA to Net Advances (%)||0||0.5||1.6||1.6||5.8||3.8||3.3||0||0||0||-|
|Capitalization Ratio||To view Capitalization Ratio Colour Rating Guide click here ⓘ|
|Capital Adequacy Ratio (%)||19.4||19.6||20.4||21.2||19.4||17.8||16.1||0||0||0||-|
|Net Profit Margin (%)||27.5||26||23.8||26.5||19.7||22.8||16.4||23.6||25.7||28.2||28.4|
|Performance Ratios||To view Performance Ratios Colour Rating Guide click here ⓘ|
|Return on Equity (%)||24.6||23.1||21.1||20.2||13.5||17.3||14.1||21.5||21.5||20.6||19.3|
Total Income has increased 9.56 CAGR in last 3 years
Net Profit has increased 31.27 CAGR in last 3 years
Total income growth is good in last 4 quarters
Return on Equity has declined versus last 3 years average to 19.70%
|TTM EPS (₹)||43.9||44.4|
|TTM Sales (₹ Cr.)||40,707||40,690|
|BVPS (₹.) ⓘ||228.2||229.9|
|Reserves (₹ Cr.) ⓘ||57,449||57,897|
|From the Market|
|52 Week Low / High (₹)||91.00 / 292.00|
|All Time Low / High (₹)||20.08 / 285.90|
|Market Cap (₹ Cr.)||75,718|
|Equity (₹ Cr.)||2,633.2|
|Face Value (₹)||10|
|Industry PE ⓘ||8.8|
REC (formerly Rural Electrification Corporation Limited) came into being in 1969 to articulate a response to the pressing exigencies of the nation. The company is a Navratna company under the Ministry of Power. The company fund its business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings, on its own. Under the discerning leadership of highly qualified and experienced professionals, which has effectively harnessed the individual talents of all its employees, the company has maintained consistent profit margins and paid dividends each year since fiscal 1998.
As a natural corollary, the company has been appointed as the nodal agency by the Government of India for implementation of Saubhagya (Pradhanmantri Sahaj Bijli Har Ghar Yojana) and DDUGJY (Deendayal Upadhyaya Gram Jyoti Yojana), the schemes which aim at providing 24x7 sustainable and affordable powers to all households in the country. The company has also been entrusted with the responsibility of being the coordinating agency for rolling out UDAY (Ujwal Discom Assurance Yojana) which seeks to operationally reform and financially turnaround the power distribution companies of the country.
Business area of the company
The company is a leading infrastructure finance company. The company’s business activities involve financing projects in the complete power sector value chain, be it generation, transmission or distribution. The company provide financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through its extensive network of many offices across the country.
The company offers a gamut of financial services that cater to entities across the power sector value chain to help them set up power infrastructure, bolster operational efficiency, broaden their product portfolio and implement innovative technology solutions. The company address the financial needs of state power utilities, private sector project developers, central power sector utilities and state governments to facilitate investments in power generation, power, transmission, power distribution and system improvement initiatives.
Subsidiaries of the company