financial_services · RECLTD
REC Limited
REC Limited: PE below historical average. ROTATIONAL regime.
Price
₹328.1
Price 2026-08-20
5 day
-2.06%
Short-term move
1 month
-8.34%
Medium-term
Regime
ROTATIONAL
68% confidence
Market cap
₹93.8k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's ROTATIONAL regime affect REC Limited (RECLTD) in the financial_services sector?”
Price chart
₹339
-11.00% over period
About REC Limited
REC Limited, together with its subsidiaries, engages in the provision of financing services for power generation, transmission, distribution, infrastructure, and logistics projects in India. The company primarily offers long, medium, and short-terms loans; debt refinancing, equity financing, financing of equipment manufacturing for power sector and coal mines; policy for funding against regulatory assets, and revolving bill payment facility services; and letter of undertaking in lieu of bank guarantee, etc. It is also involved in the implementation of distribution system strengthening works, implementation of grid/off-grid solar (PV) projects, and installation of smart meters. In addition, the company 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. It serves government entities, independent power producers, and private sector borrowers. The company was formerly known as Rural Electrification Corporation Limited and changed its name to REC Limited in October 2018. The company was incorporated in 1969 and is based in Gurugram, India...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -10.0% over 14 days) — not a reliable pattern.
52-week position
Trading at 80.4% of 52-week high
Technicals
RSI 14
18.5
Trend
downtrend
50 DMA
Below
200 DMA
Below
Key metrics
P/E ratio
5.8
29th pct · 7 quarterly points (limited history)
P/B
1.1
ROE
20.0%
Moderate profitability — 20.0% ROE
Market cap
₹93.8k Cr
Revenue growth
-1440.0% YoY
Promoter
52.6%
52-week range
₹304.05 – ₹408.25
80.4% of high
RSI (14)
18.5
downtrend
vs 50 DMA
Below
DMA ₹356.61
Fundamental
79/100
STRONG
Trust
90/100
Verification
Coverage
100/100
HIGH
Quick Take
REC Limited scores 79/100 on fundamentals (strong). REC Limited: PE below historical average. ROTATIONAL regime.
Fundamental Score: 79/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 18.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 18.9% is moderate leverage-driven and stable. Net margin 78.7%, asset turnover 0.03x, leverage 7.5x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.
What This Means
Net margin of 78.7% means the company keeps ₹78.7 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.03x means the company generates ₹0.03 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 7.5x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
100.0%
Operating
%
Net
78.7%
Financial Health
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| BAJAJFINSV Bajaj Finserv | ₹2,016 | -0.4% | 30.9 | 14.6% | 530% | ₹3.0L Cr |
| BAJAJHLDNG Bajaj Holdings | ₹11,368 | -1.1% | 12.4 | 12.6% | -4830% | ₹1.2L Cr |
| ABCAPITAL Aditya Birla Capital | ₹409 | +0.3% | 28.4 | 11.2% | 770% | ₹1.1L Cr |
| 360ONE 360 ONE WAM | ₹1,203 | +1.7% | 39.3 | 14.4% | 2690% | ₹46.8k Cr |
| ANANDRATHI Anand Rathi Wealth | ₹2,171.1 | -1.3% | 87.4 | 46.7% | 4760% | ₹34.1k Cr |
| ANGELONE Angel One | ₹289.5 | -0.9% | 34.1 | 15.5% | 3350% | ₹30.7k Cr |
| AADHARHFC Aadhar Housing Finance | ₹474.95 | -5.6% | 22 | 15.8% | 2090% | ₹23.9k Cr |
| APTUS Aptus Value Housing | ₹253.3 | -0.2% | 15.2 | 20.1% | 2210% | ₹14.3k Cr |
| RECLTD REC Limited | ₹328.1 | -4.9% | 5.8 | 20% | -1440% | ₹93.8k Cr |
Tensions to watch
PE in bottom 29% historically — undervaluation or fundamental deterioration?
Low PE can signal value OR declining growth expectations. Check recent earnings and sector outlook.
Promoter holding at 52.6% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Bank Metrics
Return on Assets
2.51%
Benchmark: >1%
Efficiency Ratio
21.3%
Lower is better
Asset Growth
+4.2%
Year over year
PB Ratio
1.1x
Price to book
ROA of 2.51% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 1.1x — trading above book. Reasonable valuation for a bank.
Key Watchpoints
Breaks above ₹345 (+5%)
Trend reversal confirmation
Breaks below ₹312 (-5%)
Further downside risk
PE reverts to median of 5.9 (7 quarterly points (limited history))
Valuation normalization
Financial_Services sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Governance structure concerns. Independent director representation may be weak.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
