REC Ltd.
NSE: RECLTDREC Ltd.: A 30-second snapshot
REC Limited trades at a trailing PE of 5.67x (forward 4.93x) with a profit margin of 68.89% and a dividend yield of 1.8%. At ₹343.75 the stock is down 6.98% over 12 months, 10.26% below its 52-week high, and below both its 50-DMA (₹353.95) and 200-DMA (₹347.77). Mean analyst rating stands at 1.54 across 13 analysts on a 1-5 scale (lower = more constructive).
P/E
5.7
Forward P/E
4.9
ROE
—
Debt / Equity
607.46
Profit Margin
+68.9%
Div. Yield
+1.8%
5Y ROE > 15%
4/5
5Y FCF > 0
1/5
Quality
58/100
News
5 headlines · 2 positive · 1 negative
Double Jolt: PFC, REC Shares Plunge Up To 8% After CLSA Cuts Target Price On Mixed Q1 Results - NDTV Profit
NDTV Profit
REC Limited Announces Appointment of Somya Kant as Executive Director, Effective August 3, 2026 - marketscreener.com
marketscreener.com
REC Declares Rs 4.25/Share Interim Dividend, Q1 Profit Up 23% - NDTV Profit
NDTV Profit
REC Limited Proposes First Interim Dividend for the Financial Year 2026-27, Payable on or Before September 24, 2026 - marketscreener.com
marketscreener.com
India new issue - REC to issue multiple-tenor bonds, bankers say - marketscreener.com
marketscreener.com
Recent context
- ·CLSA cut its target price on REC after "mixed" Q1 results, with REC and sister PSU lender PFC shares falling as much as 8% on August 10.
- ·REC declared a ₹4.25/share interim dividend on Q1 profit that rose 23% year-on-year (July 24), and separately proposed a first interim dividend for FY26-27, payable by September 24, 2026.
- ·REC appointed Somya Kant as Executive Director effective August 3, 2026, and is reported to be in the market with a multi-tenor bond issuance (August 5).
Strengths
- +Trailing PE of 5.67x is the lowest among the 6-stock banking/NBFC peer set tracked, ranking 1st of 6 on that metric ahead of AXISBANK, HDFCBANK, and BAJFINANCE.
- +Profit margin of 68.89%, consistent with a lending-based interest-income model.
- +ROE exceeded 15% in 4 of the tracked years per the persistence dataset, with a consistency score of 56.
- +Declared a ₹4.25/share interim dividend after Q1 profit rose 23% year-on-year, with a further first interim dividend for FY26-27 proposed, payable on or before September 24, 2026.
Weaknesses
- −5-year earnings growth of -6.1% has diverged from 5-year revenue growth of 25.2%, indicating profitability has not kept pace with loan-book expansion.
- −Debt-to-equity of roughly 6.07x carries a rising trend, and free cash flow was positive in only 1 of the tracked years — structural to REC's lending model, but a combination worth tracking alongside the earnings decline.
- −Price trades below both the 50-DMA (₹353.95) and 200-DMA (₹347.77), down 6.98% over 12 months and 10.26% off its 52-week high.
- −Quality score of 43 ranks REC 4th of 6 within its peer set, and the current-period ROE reading is unavailable (null) in this dataset despite 4 of the tracked years reading above 15%.
Open questions
- ?Does the 25.2% five-year revenue growth alongside -6.1% five-year earnings growth reflect rising credit costs, margin compression, or one-off items in specific years?
- ?How does REC's 6.07x debt-to-equity and rising debt trend compare with the funding structure of other PSU-linked NBFC lenders, rather than non-financial companies?
- ?What specifically did CLSA's post-Q1 note flag that led to the target-price cut, and how does that square with the 23% year-on-year profit growth reported the same quarter?
- ?Why might the mean analyst rating of 1.54 across 13 analysts diverge from the stock's -6.98% one-year price performance and its position below both key moving averages?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RECLTD | REC Ltd.You're viewing | 5.7 | — | 43 |
| Industry avg | across 5 peers | 30.8 | +12.7% | 51 |
| AXISBANK | Axis Bank Ltd. | 13.8 | +13.3% | 70 |
| HDFCBANK | HDFC Bank Ltd. | 15.9 | +13.8% | 66 |
| BAJFINANCE | Bajaj Finance Ltd. | 33.6 | — | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 32.1 | — | 37 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 58.7 | +10.8% | 33 |
Technical state
Current price
₹343.75
SMA 50
₹353.95
SMA 200
₹347.77
RSI (14)
37.5 (neutral)
From 52w high
-10.3%
1Y return
-7.0%
3M return
-0.2%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- medium5-year revenue growth of 25.2% has outpaced 5-year earnings growth of -6.1%, indicating reported profitability has not kept pace with loan-book expansion over the period.
- mediumDebt-to-equity works out to roughly 6.07x (the reported 607.46 figure is percent-scaled) with a rising debt trend and free cash flow positive in only 1 of the tracked years. High leverage and negative free cash flow are structural to REC's lending business, funded through borrowings against a growing loan book, but the combination alongside declining 5-year earnings growth is worth tracking.
- lowPrice of ₹343.75 sits below both the 50-DMA (₹353.95) and 200-DMA (₹347.77), is down 6.98% over 12 months, and is 10.26% off its 52-week high.
- lowQuality score of 43 ranks REC 4th of 6 within its tracked banking/NBFC peer set, even as its trailing PE of 5.67x is the lowest (rank 1 of 6) on that metric among the same peers.
Cross-section contradictions
- Mean analyst rating of 1.54 across 13 analysts sits toward the constructive end of the 1-5 scale (lower = more constructive), while the stock trades below both its 50-DMA and 200-DMA, is down 6.98% over 12 months, and one broker (CLSA) cut its target price after Q1 results on August 10.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 11 Aug 2026 · rotates through NIFTY 500 every ~5 days