IIFL Securities's Stock Idea: Buy Rec with Target Rs 465
IIFL Securities upgraded Rec to 'buy' with a revised target price of Rs 465, implying a potential upside of 3.87%. The brokerage believes that Rec's focus on renewable energy projects, strong execution capabilities, and favorable regulatory environment will drive growth going forward. The company's healthy order book, robust balance sheet, and experienced management team further support its positive outlook.
About Rec:
REC is a state-owned non-banking financial corporation headquartered in Delhi, India. It primarily provides financial assistance to power sector projects in India. REC's operations include project financing, distribution financing, refinancing, and advisory services for power sector initiatives. The company plays a significant role in the development and strengthening of India's electricity infrastructure, supporting various renewable energy and energy efficiency projects.
52 Week Price Trend:
REC's current market price (CMP) stands at Rs 447.75, hovering within its 52-week price range. The stock's 52-week high was Rs 524, indicating a potential upside of around 17%. On the other hand, its 52-week low of Rs 111.95 represents a downside risk of roughly 75%. With a wide range between its highs and lows, REC's stock price exhibits significant volatility, and investors should exercise caution and conduct thorough research before making investment decisions.
Stratzy's MOST Analysis:
RECLTD has been rated AAA by Stratzy's MOST framework, which signifies the lowest level of fundamental risk. This rating is based on the company's exceptional management team, strong outlook for future growth, high safety ratings, and positive stock price trend. The AAA rating indicates that RECLTD has a strong foundation and is well-positioned for long-term success, making it a low-risk investment opportunity for potential investors.
Company's Fundamentals:
REC Limited (Rec) is a government-owned non-banking financial company that provides financial assistance to the power sector in India. Its stock on the National Stock Exchange (NSE) has a price-to-earnings (PE) ratio of 9.21, indicating that investors are willing to pay 9.21 times the company's earnings per share for its stock. The price-to-book (PB) ratio of 1.85 implies that the market value of the company's assets is 1.85 times their book value. Lastly, the dividend yield of 2.74% represents the annual dividend paid per share as a percentage of the current market price, providing an indication of the income investors can expect from holding the stock.
Fundamental and Technical information provided in this blog were last updated on 21 Mar, 2024
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