Current price is less than the intrinsic value

Intrinsic Value

Stock has been generating better return on equity than bank FD

ROE vs FD rates

Dividend Returns

Not a good time to invest, stock is in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

REC Ltd is quoting at Rs 111.7, up 2.43% on the day as on 12:49 IST on the NSE. The stock is up 15.54% in last one year as compared to a 9.01% gain in NIFTY and a 9.11% gain in the Nifty Energy index.

REC Ltd rises for third consecutive session

This is the first time two of the country’s largest corporate houses will be vying directly against each other for an asset. A consortium of Power Finance Corp. and REC Ltd, both state-owned, will also be participating in the bidding process, the people said.

Reliance Industries | Adani Power: Reliance, Adani set for an epic clash at Lanco unit auction

REC Ltd is quoting at Rs 101.5, up 1.65% on the day as on 12:49 IST on the NSE. The stock is down 9.9% in last one year as compared to a 0.19% jump in NIFTY and a 2.78% jump in the Nifty Energy index.

REC Ltd is quoting at Rs 93.7, down 2.04% on the day as on 13:19 IST on the NSE. The stock tumbled 20.85% in last one year as compared to a 4.55% slide in NIFTY and a 6.38% fall in the Nifty Energy index.

REC Ltd down for fifth straight session

PFC Projects Ltd, an equal joint venture of Power Finance Corporation and REC Ltd, is likely to rope in technical or strategic investor partners to operate and maintain acquired stressed or non-performing assets next year.

PFC Projects likely to rope in investor partners for stressed power projects

REC Ltd is quoting at Rs 137.65, up 1.62% on the day as on 12:49 IST on the NSE. The stock is down 6.26% in last one year as compared to a 7.07% spurt in NIFTY and a 4.09% spurt in the Nifty Energy index.

REC Ltd gains for third straight session

REC Ltd last month had announced that its board has recommended bonus shares issue in the ratio of 1:3

REC’s bonus shares issue proposal gets shareholders’ nod

State-owned REC Ltd board has approved a proposal for subscribing 50 per cent equity not exceeding Rs 50 crore in PFC Projects, a power asset management company for taking over stressed assets.

REC okays subscribing 50% equity in asset management firm PFC Projects

The government should think about selling Power Finance Corporation’s interest in the company to Power Grid Corp. of India, according to the state-run REC Ltd.

REC suggests transferring PFC’s ownership of Co. to PGCIL, both stocks down

The Memorandum of Understanding was signed in the presence of R Lakshmanan, Executive Director – REC Ltd.

REC Inks Pact To Work On Improving Discoms’ Operational, Financial Sustainability

The power ministry will ask Power Finance Corp (PFC) and REC Ltd to waive prudential norms for lending to power companies, specifically to buy imported coal for blending purposes as well as for running imported coal-based plants. This is the first-time specific coal loans will be offered to generato…

Power gencos to get easier loans for coal imports

REC Limited is an India-based infrastructure finance company. The Company's main business is to provide finance to power sector. The Company's principal products include interest-bearing loans to state electricity boards, state power utilities/state power departments and private sector for all segments of power infrastructure. It is engaged in financing projects and schemes of various power sector value chain, including generation (both conventional and renewable energy), transmission, distribution, rural electrification and activities having forward or backward linkage with power projects. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through its network of approximately 22 offices. The Company also acts as the nodal agency or project implementing agency for various schemes and programs of the Ministry of Power, Government of India.

REC Ltd

REC Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

REC Ltd rises for third consecutive session

Reliance Industries | Adani Power: Reliance, Adani set for an epic clash at Lanco unit auction

REC Ltd rises for third consecutive session

REC Ltd down for fifth straight session

PFC Projects likely to rope in investor partners for stressed power projects

REC Ltd gains for third straight session

REC’s bonus shares issue proposal gets shareholders’ nod

REC okays subscribing 50% equity in asset management firm PFC Projects

REC Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

REC Ltd rises for third consecutive session

Reliance Industries | Adani Power: Reliance, Adani set for an epic clash at Lanco unit auction

REC Ltd rises for third consecutive session

REC Ltd down for fifth straight session

PFC Projects likely to rope in investor partners for stressed power projects

REC Ltd gains for third straight session

REC’s bonus shares issue proposal gets shareholders’ nod

REC okays subscribing 50% equity in asset management firm PFC Projects

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock