financial_services · RECLTD
REC Limited
REC Limited: PE below historical average. NARROW LEADERSHIP regime.
Price
₹364.75
Price 2026-07-06
5 day
-1.45%
Short-term move
1 month
+6.06%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹93.8k Cr
neutral sector flow
FinGenie AI
Get an intelligence answer grounded in today's published data
“How does today's NARROW LEADERSHIP regime affect REC Limited (RECLTD) in the financial_services sector?”
Price chart
₹370
-3.55% over period
About REC Limited
REC Limited, together with its subsidiaries, engages in the provision of financing services for power generation, transmission, and distribution 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 provides letter of undertaking in lieu of bank guarantee, etc. It also acts as a nodal agency for the implementation of Pradhan Mantri Sahaj Bijli Har Ghar Yojana, Pradhan Mantri Surya Ghar Muft Bujli Yojana, Deen Dayal Upadhyaya Gram Jyoti Yojana, and National Electricity Fund. 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; provides project implementation and consultancy services in power sector; and operates National Feeder Monitoring System, a cloud-based IT and analytical platform, designed to monitor the reliability and quality of power. It serves central/state government powe...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -10.1% over 14 days) — not a reliable pattern.
52-week position
Trading at 89.3% of 52-week high
Technicals
RSI 14
59.3
Trend
uptrend
50 DMA
Above
200 DMA
Above
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
89.3% of high
RSI (14)
59.3
uptrend
vs 50 DMA
Above
DMA ₹354.31
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. NARROW LEADERSHIP regime.
Fundamental Score: 79/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 19.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 19.05% is moderate leverage-driven and stable. Net margin 72.1%, asset turnover 0.04x, leverage 7.5x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.
What This Means
Net margin of 72.1% means the company keeps ₹72.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.04x means the company generates ₹0.04 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
72.1%
Financial Health
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| BAJAJFINSV Bajaj Finserv | ₹1,870.7 | +6.4% | 30.9 | 14.6% | 530% | ₹3.0L Cr |
| BAJAJHLDNG Bajaj Holdings | ₹10,819 | +3.4% | 12.4 | 12.6% | -4830% | ₹1.2L Cr |
| ABCAPITAL Aditya Birla Capital | ₹409.75 | +6.3% | 28.4 | 11.2% | 770% | ₹1.1L Cr |
| 360ONE 360 ONE WAM | ₹1,133.3 | +4.0% | 39.3 | 14.4% | 2690% | ₹46.8k Cr |
| ANANDRATHI Anand Rathi Wealth | ₹2,095.5 | +5.4% | 87.4 | 46.7% | 4760% | ₹34.1k Cr |
| ANGELONE Angel One | ₹345.95 | +5.2% | 34.1 | 15.5% | 3350% | ₹30.7k Cr |
| AADHARHFC Aadhar Housing Finance | ₹556.5 | +7.3% | 22 | 15.8% | 2090% | ₹23.9k Cr |
| APTUS Aptus Value Housing | ₹285.5 | +6.9% | 15.2 | 20.1% | 2210% | ₹14.3k Cr |
| RECLTD REC Limited | ₹364.75 | -0.1% | 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
2.53%
Benchmark: >1%
Efficiency Ratio
27.9%
Lower is better
Asset Growth
+4.2%
Year over year
PB Ratio
1.1x
Price to book
ROA of 2.53% 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 ₹383 (+5%)
Trend reversal confirmation
Breaks below ₹347 (-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.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes