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REC Ltd

Banking And Finance | Mid Cap

REC Ltd Health Insights
Health Score : 6.34Health Score : 6.34

REC Ltd, operating in the financial services sector, showcases a mixed financial performance. The company demonstrates strong growth and profitability, reflected in high scores for growth and profitability ratios. Its revenue, operating profit, and EPS have shown impressive increases, complemented by excellent gross and net profit margins. However, the company's liquidity position is weak, indicating potential challenges in meeting short-term obligations. Solvency is also a concern due to high debt levels, although the debt-to-asset ratio is managed adequately. Efficiency is hampered by low turnover ratios, but this is somewhat offset by high scores in other areas. Overall, REC Ltd exhibits robust growth and profitability but needs to address its liquidity and solvency challenges to ensure long-term stability.

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Overview
Ratio
Financial
REC Ltd Health Insights
Health Score : 6.34Health Score : 6.34

REC Ltd, operating in the financial services sector, showcases a mixed financial performance. The company demonstrates strong growth and profitability, reflected in high scores for growth and profitability ratios. Its revenue, operating profit, and EPS have shown impressive increases, complemented by excellent gross and net profit margins. However, the company's liquidity position is weak, indicating potential challenges in meeting short-term obligations. Solvency is also a concern due to high debt levels, although the debt-to-asset ratio is managed adequately. Efficiency is hampered by low turnover ratios, but this is somewhat offset by high scores in other areas. Overall, REC Ltd exhibits robust growth and profitability but needs to address its liquidity and solvency challenges to ensure long-term stability.

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Undervalued

Overall Valuation Score

Highly Undervalued
Undervalued
Neutral
Overvalued
Highly Overvalued
Undervalued

P/E RATIO (TTM)

5.75

Undervalued

Industry Median

10.35

Undervalued
Undervalued

Mid Cap Median

10.35

Undervalued

P/E RATIO

5.74

P/B RATIO

1.10

Undervalued

Industry Median

2.29

Undervalued
Undervalued

Mid Cap Median

1.90

Undervalued

P/S RATIO

1.57

Undervalued

Industry Median

3.18

Undervalued
Undervalued

Mid Cap Median

3.18

Undervalued

Others

Highly Undervalued

PEG RATIO

0.40

Highly Undervalued
Neutral

EV/EBITDA RATIO

10.64

Neutral

The Calculations Shown Above Are Based on the Last Traded Price (LTP) of ₹355.35 as on Jun 21, 2026.

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Growth Ratio Summary
Growth Ratio SummaryGrowth Score : 10.00

The company shows very good growth. Maintaining high growth rates is crucial and may require continued investment in innovation, market expansion, and operational efficiency. The company is likely to get benefit in the coming years.

ExcellentRevenue Growth RateExcellent
ExcellentOperating Profit Growth RateExcellent
ExcellentEarnings Per Share (EPS) GrowthExcellent
ExcellentAsset Growth RateExcellent
ExcellentNet Income Growth RateExcellent
Growth RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue Growth Rate10.460.5320.3418.635.7
Operating Profit Growth Rate14.9512.1729.0911.983.4
Earnings Per Share (EPS) Growth19.7711.2826.6712.292.67
Asset Growth Rate2.4913.317.7612.14.18
Net Income Growth Rate19.7911.2726.6712.292.67
01.

Revenue Growth Rate

02.

Operating Profit Growth Rate

03.

Earnings Per Share (EPS) Growth

04.

Asset Growth Rate

05.

Net Income Growth Rate

Financial Ratio Summary
Financial Ratio SummaryFinancial Score : 7.00

The company is doing well with dividend, but not so good with earnings and book value. Balancing earnings growth, book value, and dividend payouts is essential for creating long-term shareholder value. The company may suffer if it don't focus on these factors.

AverageAdjusted Earnings Per Share (Adjusted EPS)Average
WeakCash Earnings Per Share (Cash EPS)Weak
WeakBook Value Per ShareWeak
ExcellentDividend Per Share (DPS)Excellent
ExcellentCapital Expenditures (CapEx)Excellent
Financial RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Adjusted Earnings Per Share (Adjusted EPS)50.742.4253.7360.3361.99
Cash Earnings Per Share (Cash EPS)50.9142.553.8160.4262.04
Book Value Per Share259.82220.74263.39297.67323.03
Dividend Per Share (DPS)11.4312.7216.1218.118.58
Capital Expenditures (CapEx)4818348370
01.

Adjusted Earnings Per Share (Adjusted EPS)

02.

Cash Earnings Per Share (Cash EPS)

03.

Book Value Per Share

04.

Dividend Per Share (DPS)

05.

Capital Expenditures (CapEx)

Profitability Ratio Summary
Profitability Ratio SummaryProfitability Score : 9.80

The company has very high profit margins. Sustaining high profitability is crucial and requires continuous efforts to manage costs, innovate, and maintain competitive advantages. The company is likely to earn more profit in the coming years.

ExcellentGross Profit MarginExcellent
ExcellentReturn on Capital Employed (ROCE)Excellent
ExcellentReturn on Equity (ROE)Excellent
GoodReturn on Assets (ROA)Good
ExcellentOperating MarginExcellent
ExcellentNet MarginExcellent
Profitability RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Gross Profit Margin31.4935.1337.735.5934.81
Return on Capital Employed (ROCE)99101067.02
Return on Equity (ROE)19.5619.2120.420.2719.17
Return on Assets (ROA)3.012.983.273.273.24
Operating Margin31.5435.1937.7535.6334.85
Net Margin25.5528.2829.7728.1827.37
01.

Gross Profit Margin

02.

Return on Capital Employed (ROCE)

03.

Return on Equity (ROE)

04.

Return on Assets (ROA)

05.

Operating Margin

06.

Net Margin

Efficiency Ratio Summary
Efficiency Ratio SummaryEfficiency Score : 4.67

Efficiency is hampered by low turnover ratios. While low turnover ratios are not ideal, the company's unique business model could explain these figures. Efficient use of capital is essential for sustained growth and profitability.

PoorFixed Asset Turnover RatioPoor
PoorInventory Turnover RatioPoor
PoorReceivables Turnover RatioPoor
ExcellentDays Sales in Inventory RatioExcellent
ExcellentReceivable DaysExcellent
PoorCapital Turnover RatioPoor
Efficiency RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Fixed Asset Turnover Ratio62.5461.675.1989.6296.73
Inventory Turnover RatioN/AN/AN/AN/AN/A
Receivables Turnover Ratio334.26379.67355.93289.81225.7
Days Sales in Inventory RatioN/AN/AN/AN/AN/A
Receivable Days1.090.961.031.261.62
Capital Turnover Ratio0.10.090.090.10.7
01.

Fixed Asset Turnover Ratio

02.

Inventory Turnover Ratio

03.

Receivables Turnover Ratio

04.

Days Sales in Inventory Ratio

05.

Receivable Days

06.

Capital Turnover Ratio

Coverage Ratio Summary
Coverage Ratio SummaryCoverage Score : 6.80

The company is able to pay its debts and dividends from its earnings. Maintaining adequate coverage ratios is important to sustain investor confidence and ensure long-term financial health. The company is likely to perform better in the coming years.

AverageInterest Coverage RatioAverage
GoodEquity Dividend Coverage RatioGood
Coverage RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Interest Coverage Ratio1.561.591.61.591.57
Equity Dividend Coverage Ratio3.333.333.333.333.33
01.

Interest Coverage Ratio

02.

Equity Dividend Coverage Ratio

Solvency Ratio Summary
Solvency Ratio SummarySolvency Score : 2.80

Solvency is a concern due to high debt levels. While a high debt ratio can amplify returns during favorable times, it also increases financial risk during downturns. Managing debt levels and improving equity could enhance the company's long-term stability. The higher the debt, the more difficult it may be to repay its obligations.

PoorDebt RatioPoor
PoorDebt to Equity RatioPoor
PoorEquity RatioPoor
AverageDebt To Asset RatioAverage
Solvency RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debt Ratio0.870.870.870.860
Debt to Equity Ratio6.696.696.696.140
Equity Ratio0.130.130.130.141
Debt To Asset Ratio0.810.820.810.810
01.

Debt Ratio

02.

Debt to Equity Ratio

03.

Equity Ratio

04.

Debt To Asset Ratio

Liquidity Ratio Summary
Liquidity Ratio SummaryLiquidity Score : 2.00

The liquidity position indicates potential difficulties in meeting short-term obligations. While a low liquidity may not immediately impact operations, it raises concerns about the company's ability to handle unforeseen financial demands or invest in growth opportunities. Improving current and quick ratios could enhance financial flexibility.

PoorCurrent RatioPoor
PoorQuick RatioPoor
PoorCash RatioPoor
PoorOperating Cash Flow RatioPoor
Liquidity RatiosMar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Current Ratio15.417.3616.315.2215.59
Quick Ratio15.417.3616.315.2215.59
Cash Ratio0.10.090.090.060.04
Operating Cash Flow Ratio-0.03-1.4-1.73-0.980.15
01.

Current Ratio

02.

Quick Ratio

03.

Cash Ratio

04.

Operating Cash Flow Ratio

Peer Comparison With 4 Companies

Peer Comparison empowers investors to evaluate a company against its industry peers using key financial metrics like P/E ratio, EPS, and profit margins. It helps identify whether a company is overvalued, undervalued, or performing in line with competitors. Investors can use this data to spot opportunities, assess risks, and make informed decisions. This contextual view adds depth beyond standalone company analysis.

NO Company Name Health Score P/E Ratio Valuation OPM EPS Latest Profit & Loss
1Indian Renewable Energy Development Agency Ltd6.9219.06NeutralN/A6.671874.00
2Housing & Urban Development Corporation Ltd6.8010.35NeutralN/A20.154034.00
3Power Finance Corporation Ltd6.385.49Highly UndervaluedN/A60.7633625.00
4REC Ltd6.345.74UndervaluedN/A61.8316308.00
Management Assessment Summary
OrangeBalanced Management

REC Ltd's management demonstrates effective financial performance and shareholder alignment. Consistent growth in sales and profits, along with high operating profit margins, indicates strong operational efficiency. Robust ROE and ROCE values reflect efficient fund utilization. A high promoter holding suggests confidence in the company's future. However, the increasing debt levels are a concern, potentially impacting future financial stability if not carefully managed.

Category Metric Value Assessment
PROS Sales Growth (TTM) 19% Strong revenue expansion
Profit Growth (5Y) 26% Strong and sustainable profit growth
Operating Profit Margin (Mar 2025) 96% Excellent operational efficiency
Promoter Holding (Mar 2025) 52.63% High confidence and alignment
CONS Borrowings (Mar 2025) ₹ 496,243 Cr Increasing debt levels
ExcellentFinancial Performance & GrowthExcellent
ExcellentCapital Efficiency & ReturnsExcellent
AverageFinancial Health & PrudenceAverage
GoodShareholding & Ownership StructureGood
01.

Financial Performance & Growth

02.

Capital Efficiency & Returns

03.

Financial Health & Prudence

04.

Shareholding & Ownership Structure

Risk Assessment Summary
OrangeBalanced Risk

REC Ltd.'s risk profile is moderate due to strengths like consistent profitability and a stable shareholding pattern. However, increasing debt levels raise concerns. These factors suggest a need for careful monitoring and strategic financial management.

WeakOff-balance sheet exposure quantificationWeak
WeakContingent liability evaluationWeak
AverageForeign exchange or interest rate exposureAverage
WeakRegulatory compliance cost trendsWeak
01.

Off-balance sheet exposure quantification

02.

Contingent liability evaluation

03.

Foreign exchange or interest rate exposure

04.

Regulatory compliance cost trends

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Overall Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Market Sentiment

Analysis Driven By 26 Technical Indicators From The 1 Hour Timeframe

Trend Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bearish

Momentum Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Volatility Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volume Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Trend Indicators (14)
  1. IndicatorValueSignal
  2. SMA 10356.56Bearish
  3. SMA 20357.37Bearish
  4. SMA 50351.95Bullish
  5. EMA 10356.28Bearish
  6. EMA 20356.21Bearish
  7. EMA 50353.07Bullish
  8. DEMA 10355.72Bearish
  9. DEMA 20357.36Bearish
  10. DEMA 50358.57Bearish
  11. TEMA 10355.11Bullish
  12. TEMA 20356.01Bearish
  13. TEMA 50359.51Bearish
  14. MACD0.64Bearish
  15. ADX27.82Strong Trend
Momentum Indicators (7)
  1. IndicatorValueSignal
  2. RSI50.03Neutral
  3. CCI-92.45Neutral
  4. ROC 9-0.49Bearish
  5. ROC 14-0.91Bearish
  6. ROC 250.18Bullish
  7. Stoch K20.24Neutral
  8. Stoch D18.02Oversold
Volatility Indicators (4)
  1. IndicatorValueSignal
  2. BB Upper361.21Neutral
  3. BB Middle357.36Neutral
  4. BB Lower353.52Neutral
  5. ATR2.52Low Volatility
Volume Indicators (1)
  1. IndicatorValueSignal
  2. MFI50.84Neutral

Overall Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Market Sentiment

Analysis Driven By 26 Technical Indicators From The 2 Hours Timeframe

Trend Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bearish

Momentum Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Volatility Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volume Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Trend Indicators (14)
  1. IndicatorValueSignal
  2. SMA 10357.06Bearish
  3. SMA 20355.93Bearish
  4. SMA 50347.94Bullish
  5. EMA 10356.25Bearish
  6. EMA 20354.72Bullish
  7. EMA 50349.69Bullish
  8. DEMA 10356.89Bearish
  9. DEMA 20358.42Bearish
  10. DEMA 50355.20Bullish
  11. TEMA 10355.73Bearish
  12. TEMA 20357.88Bearish
  13. TEMA 50359.78Bearish
  14. MACD2.54Bearish
  15. ADX31.75Strong Trend
Momentum Indicators (7)
  1. IndicatorValueSignal
  2. RSI56.50Neutral
  3. CCI-20.52Neutral
  4. ROC 9-0.78Bearish
  5. ROC 140.11Bullish
  6. ROC 255.49Bullish
  7. Stoch K24.62Neutral
  8. Stoch D30.47Neutral
Volatility Indicators (4)
  1. IndicatorValueSignal
  2. BB Upper360.17Neutral
  3. BB Middle355.93Neutral
  4. BB Lower351.69Neutral
  5. ATR3.21Low Volatility
Volume Indicators (1)
  1. IndicatorValueSignal
  2. MFI49.70Neutral

Overall Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Market Sentiment

Analysis Driven By 26 Technical Indicators From The 4 Hours Timeframe

Trend Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Momentum Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volatility Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volume Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Trend Indicators (14)
  1. IndicatorValueSignal
  2. SMA 10356.08Bearish
  3. SMA 20350.94Bullish
  4. SMA 50341.82Bullish
  5. EMA 10354.80Bullish
  6. EMA 20351.03Bullish
  7. EMA 50346.78Bullish
  8. DEMA 10358.35Bearish
  9. DEMA 20356.96Bearish
  10. DEMA 50348.49Bullish
  11. TEMA 10357.78Bearish
  12. TEMA 20360.04Bearish
  13. TEMA 50N/AN/A
  14. MACD4.53Bullish
  15. ADX26.04Strong Trend
Momentum Indicators (7)
  1. IndicatorValueSignal
  2. RSI60.40Neutral
  3. CCI49.16Neutral
  4. ROC 90.87Bullish
  5. ROC 142.05Bullish
  6. ROC 259.26Bullish
  7. Stoch K70.90Neutral
  8. Stoch D76.00Neutral
Volatility Indicators (4)
  1. IndicatorValueSignal
  2. BB Upper363.87Neutral
  3. BB Middle350.94Neutral
  4. BB Lower338.02Neutral
  5. ATR5.07Low Volatility
Volume Indicators (1)
  1. IndicatorValueSignal
  2. MFI55.99Neutral

Overall Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Market Sentiment

Analysis Driven By 33 Technical Indicators From The 1 Day Timeframe

Trend Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Momentum Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Volatility Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volume Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Trend Indicators (22)
  1. IndicatorValueSignal
  2. SMA 10351.04Bullish
  3. SMA 20343.29Bullish
  4. SMA 50351.46Bullish
  5. SMA 100349.19Bullish
  6. SMA 200357.26Bearish
  7. EMA 10351.24Bullish
  8. EMA 20347.74Bullish
  9. EMA 50347.31Bullish
  10. EMA 100350.41Bullish
  11. EMA 200362.49Bearish
  12. DEMA 10356.93Bearish
  13. DEMA 20350.56Bullish
  14. DEMA 50345.66Bullish
  15. DEMA 100341.80Bullish
  16. DEMA 200335.47Bullish
  17. TEMA 10359.65Bearish
  18. TEMA 20354.99Bullish
  19. TEMA 50347.40Bullish
  20. TEMA 100346.39Bullish
  21. TEMA 200333.14Bullish
  22. MACD2.92Bullish
  23. ADX15.25Weak Trend
Momentum Indicators (6)
  1. IndicatorValueSignal
  2. RSI56.70Neutral
  3. CCI101.13Overbought
  4. ROC 147.23Bullish
  5. ROC 252.02Bullish
  6. Stoch K87.04Overbought
  7. Stoch D91.14Overbought
Volatility Indicators (4)
  1. IndicatorValueSignal
  2. BB Upper363.35Neutral
  3. BB Middle343.28Neutral
  4. BB Lower323.22Neutral
  5. ATR8.69Low Volatility
Volume Indicators (1)
  1. IndicatorValueSignal
  2. MFI75.64Neutral

Overall Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Market Sentiment

Analysis Driven By 21 Technical Indicators From The 1 Week Timeframe

Trend Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Momentum Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volatility Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volume Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Trend Indicators (10)
  1. IndicatorValueSignal
  2. SMA 20347.54Bullish
  3. SMA 50362.08Bearish
  4. EMA 20349.73Bearish
  5. EMA 50366.92Bearish
  6. DEMA 20342.42Bullish
  7. DEMA 50338.32Bullish
  8. TEMA 20346.16Bullish
  9. TEMA 50325.72Bullish
  10. MACD-5.11Bullish
  11. ADX16.79Weak Trend
Momentum Indicators (6)
  1. IndicatorValueSignal
  2. RSI46.75Neutral
  3. CCI-68.91Neutral
  4. ROC 142.62Bullish
  5. ROC 252.61Bullish
  6. Stoch K46.94Neutral
  7. Stoch D44.24Neutral
Volatility Indicators (4)
  1. IndicatorValueSignal
  2. BB Upper377.83Neutral
  3. BB Middle347.54Neutral
  4. BB Lower317.25Neutral
  5. ATR22.34Low Volatility
Volume Indicators (1)
  1. IndicatorValueSignal
  2. MFI45.70Neutral

Overall Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Market Sentiment

Analysis Driven By 25 Technical Indicators From The 1 Month Timeframe

Trend Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bearish

Momentum Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Volatility Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Bullish

Volume Score

Strong Bearish

Bearish

Neutral

Bullish

Strong Bullish

Neutral

Trend Indicators (14)
  1. IndicatorValueSignal
  2. SMA 6344.63Bearish
  3. SMA 12360.33Bearish
  4. SMA 24428.56Bearish
  5. EMA 6346.00Bearish
  6. EMA 12363.84Bearish
  7. EMA 24374.83Bearish
  8. DEMA 6332.83Bullish
  9. DEMA 12334.16Bullish
  10. DEMA 24389.32Bearish
  11. TEMA 6336.95Bullish
  12. TEMA 12318.89Bullish
  13. TEMA 24340.35Bearish
  14. MACD43.99Bearish
  15. ADX23.81Weak Trend
Momentum Indicators (6)
  1. IndicatorValueSignal
  2. RSI51.44Neutral
  3. CCI10.73Neutral
  4. ROC 25-33.47Bearish
  5. ROC 50265.86Bullish
  6. Stoch K16.32Oversold
  7. Stoch D44.72Neutral
Volatility Indicators (4)
  1. IndicatorValueSignal
  2. BB Upper518.73Neutral
  3. BB Middle397.08Neutral
  4. BB Lower275.43Neutral
  5. ATR57.80Low Volatility
Volume Indicators (1)
  1. IndicatorValueSignal
  2. MFI28.03Neutral