REC Limited (RECLTD)

Table of Contents

Share Holding Patterns of REC Limited

shareholding percentage of REC Limited

Category	% Holding
Promoters	52.63%
Foreign Institutional Investors (FII)	20.48%
Domestic Institutional Investors (DII)	14.70%
General Public	12.18%
Others	0.00%
Total	100%

📈Financial matrix of REC Limited

Metric	Value
Revenue from Operations	₹47,146 crore
Net Profit (PAT)	₹14,019 crore
Earnings Per Share (EPS)	₹53.11
Book Value per Share	₹259.09
Dividend per Share	₹16.00
Net Profit Margin	29.73%
Return on Net Worth (RoNW)	22.17%
Return on Capital Employed (RoCE)	68.94%
Debt-to-Equity Ratio	6.53
Current Ratio	1.14
Net Interest Margin (NIM)	3.57%
Total Sanctions	₹3,58,816 crore
Disbursements	₹1,61,462 crore
Loan Book Size	₹5.09 lakh crore
Net Credit-Impaired Assets	0.86%
Capital Adequacy Ratio (CRAR)	25.82%
Market Capitalization	₹1,18,757 crore

💡What are the key points of REC LIMITED stock

Credit ratings AAA ratings by agencies like CRISIL, FITCH and ICRA indicating a strong creditworthiness. consistent revenue and profit growth with a strong credit ratings being a public sector enterprise stability and trust is there.

It is a public sector enterprise under the ministry of power and is a subsidiary of power finance corporation , this means it is a government owned company. Expansion into renewable energy and non-power infrastructure sectors it aims to increase its loan’s portfolio in renewable energy project to 30% by 2030. This is a good dividend paying stocks. As this stock works for rural electrification project and we know more than 70% people in India lives in rural area and there is scarcity of electricity in remote areas so it is a big opportunity for this company to perform in future and give good returns to its investors. As of March 31, 2024, REC Ltd. reported a total loan book of ₹5.09 lakh crore, marking a 17.13% increase from ₹4.35 lakh crore in FY23.

In FY 2023–24, REC achieved record-breaking figures:

• Loan Sanctions: ₹3.59 lakh crore

• Loan Disbursements: ₹1.61 lakh crore

These figures represent the highest-ever annual loan sanctions and disbursements in the company’s history.

Additionally, REC expanded its portfolio by sanctioning ₹40,569 crore to non-power infrastructure sectors, including roads, expressways, metro rail, airports, and IT infrastructure.

⚠ Cons of REC LIMITED

REC core businesses financing to power sector that means it’s performance is heavily depends on power sector .

Any slow down regulatory hiccups, or structural reforms in the power sector could impact its loan book quality and profitability .

Profitability can be impacted by fluctuating interest rates delayed in repayments by state, utilities, or renewable project to provisioning pressures . As it gives loan to infrastructure projects that is always the threat of NPAs, especially with delayed or stalled project in power sectors.

📢 Disclaimer

This blog is for educational purposes only and is not a stock recommendation. Always consult your financial advisor and conduct your own research before making any investment decisions.

NOTE:- Each working day data may be changed you can visit NSE & BSE sites for real time data.
Shashi Somwanshi
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