REC Limited
Valuation (99/100) does the heavy lifting; financial trend (3/100) is the drag.
Buy zoneOur blended model reads REC Limited as a Buy at 65/100. On 5.9x trailing earnings it sits cheaper than the Financial Services median of about 24.3x. It's trading right at its 52-week high of ₹379. Financial health scores 80/100, with a Piotroski F-score of 3/9. The average analyst target of ₹438.08 implies about 17% upside across 13 analysts. It clears 8 of 12 investability checks, with durability 65, valuation 98 and momentum 78 on our 0–100 scales.
Analysis by Ankit Sharma · StocksWizard's own estimates from end-of-day public data — see how we calculate them. For information only, not investment advice.
With a 20% margin of safety, our buy-below price is ₹596.72. Low-confidence estimate — limited data.
Analyst views
1-year price
EOD · 2026-07-3152-week range
-1.60% from the 52-week high.
Price above both moving averages reads as an intact uptrend; below both, the trend is against you.
Verdict pillars
Buy65Piotroski F-score 3/9 — quality of earnings & balance sheet.
Our scores
Durability rewards strong, low-debt, profitable businesses; Valuation rewards stocks cheap vs their sector; Momentum rewards strong price trends.
Investability checklist
- Pass: ROE above 15%: 20.0%
- Fail: Low debt (D/E < 0.5): 6.07x
- Pass: Positive free cash flow
- Fail: Revenue growth > 10%: -14%
- Fail: Earnings growing: -22%
- Pass: Net margin ≥ 10%: 70.6%
- Pass: Current ratio > 1.5: 282.50
- Pass: Below our fair value
- Pass: Margin of safety ≥ 20%
- Pass: Above 200-day average
- Pass: Above 50-day average
- No data: Positive 1-year return
- No data: Altman Z in safe zone
- Fail: Piotroski ≥ 7: 3/9
Quarterly results
Annual financials
Shareholding
- Promoter52.6%
- Institutions23.3%
- Public & other24.1%
Promoter holding via insider stake; institutional via reported holdings.
Key fundamentals
Bull case vs bear case
Bull case
Strengths
- Strong return on equity (20.0%).
- Healthy profit margin (70.6%).
- Trading near its 52-week high.
Opportunities
- Trading in our value buy zone versus sector peers.
- Trades ~100% below our estimated fair value.
Bear case
Weaknesses
- High debt relative to equity.
- Weak Piotroski score (3/9).
Threats
- Earnings contracting year on year.
About REC Limited
REC Limited provides financing services for India's power sector, offering long, medium, and short-term loans, debt refinancing, and equity financing for power generation, transmission, and distribution projects. The company also finances equipment manufacturing for the power sector and coal mines, provides regulatory asset funding policies, and offers revolving bill payment facilities and letters of undertaking.
REC Limited — frequently asked questions
Is REC Limited a buy, hold or sell?
StocksWizard currently rates REC Limited (RECLTD) a Buy, based on a blended score of 65/100 across valuation, quality, momentum and price trend. This is our own model-based view, not investment advice.
What is REC Limited's fair value?
Our blended DCF and relative-valuation model estimates REC Limited's fair value at about ₹745.9, versus a current price of ₹372.95 — roughly 100% upside. On that basis the stock looks undervalued by 100%.
Is REC Limited financially healthy?
REC Limited scores 80/100 on our financial-health model, with a Piotroski F-score of 3/9.
How has REC Limited's share price performed?
REC Limited is up 6% over three months, and last traded at ₹372.95. Past performance doesn't predict future returns.
More in Financial Services
View allOur verdict, fair value, financial-health and checklist are StocksWizard's own estimates, computed from public end-of-day data using standard models (DCF, relative valuation, Altman Z, Piotroski). For information only — not investment advice or a recommendation. Verify independently before investing.