Top Stocks Today : IIFL Securities has Buy call on Rec - May 15

IIFL Securities has recommended buying shares of REC with a target price of Rs 554, indicating a potential upside of around 4%. The stock's current market price is Rs 535.2. The brokerage firm believes that REC's strong financial performance, government support, and attractive valuations make it an attractive investment opportunity. The company's revenue and profit growth have been impressive, and it is expected to continue to benefit from the government's focus on infrastructure development.

About Rec:

REC Limited (formerly Rural Electrification Corporation Limited) is a public sector undertaking under the Ministry of Power, Government of India, engaged in financing and promoting rural electrification projects in India. The company has been playing a vital role in providing electricity to remote and underprivileged areas of the country. REC offers financial assistance to state electricity boards, rural electric cooperatives, and private sector companies for various projects related to generation, transmission, and distribution of electricity in rural areas. It also provides technical and advisory services to these entities. As of March 31, 2023, REC had sanctioned loans amounting to Rs. 2,12,526 crore for rural electrification projects across the country.

52 Week Price Trend:

Rec (NSE: RECLTD), a leading infrastructure finance company in India, is currently trading at Rs 535.2, close to its 52-week high of Rs 524. This recent surge in market price reflects the company's strong financial performance and improved asset quality. Over the past year, Rec's share price has witnessed a significant recovery from its 52-week low of Rs 111.95, indicating investors' confidence in the company's long-term prospects. The company's consistent dividend payments and government support further enhance its appeal to investors seeking stable income and long-term capital appreciation.

Stratzy's MOST Analysis:

REC LTD has been awarded an AAA rating by Stratzy's MOST Framework, which evaluates a stock's Management, Outlook, Safety, and Trend. The rating indicates that REC LTD has strong management, a positive outlook, high safety, and a favorable trend. As a result, it is considered a low fundamental risk investment. This comprehensive assessment provides valuable insights for investors seeking to make informed decisions about their portfolios.

Company's Fundamentals:

Rec (NSE: RECLTD) currently trades at a Price to Earning (PE) ratio of 9.21, implying that investors are willing to pay INR 9.21 for every INR 1 of earnings. The Price to Book (PB) ratio of 1.85 suggests that the market value of Rec's assets is 1.85 times its book value. Additionally, Rec offers a dividend yield of 2.74%, indicating that investors can earn a return of INR 2.74 for every INR 100 invested in the company. These metrics collectively provide insights into Rec's valuation, financial health, and dividend payout strategy, enabling investors to make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 15 May, 2024

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