REC Limited Share Price Target 2025, 2026, 2027 to 2030: We’ll analyze REC Limited’s (RECL) share targets for 2025, 2026, 2027, and 2030. As a key player in India’s power sector, REC is set to benefit from the country’s growing energy needs and infrastructure development. With strong financials and a pivotal role in financing power projects, REC is well-positioned for steady growth, supported by government initiatives in renewable energy and infrastructure.
Overview of REC Limited (RECLTD)
What is REC Limited (RECLTD)?
REC Limited, formerly known as Rural Electrification Corporation Limited, is a prominent Indian public sector company that finances and promotes power projects across the country. Founded on July 25, 1969, and headquartered in the National Capital Region, REC is a key player in India’s power sector. The company is a subsidiary of Power Finance Corporation and has a significant role in supporting the development of power infrastructure in India. REC Limited also focuses on rural electrification and financing renewable energy projects.
Key Features of REC Limited (RECLTD):
- Business Model: REC Limited finances power projects and provides loans to utilities, state power boards, and independent power producers, supporting both conventional and renewable energy sectors.
- Core Offerings: The company offers financial services for power generation, transmission, and distribution projects.
- Clientele: REC serves various government agencies, utilities, and independent power producers, aiding in the development of power infrastructure.
- Market Position: As a leading entity in India’s power financing landscape, REC is vital to the growth of the country’s energy sector, with a focus on infrastructure development and rural electrification.
Information about REC Limited (RECLTD)
| Information | Details |
|---|---|
| Website | recindia.nic.in |
| Operator | REC Limited |
| Founded | 25 July 1969 |
| Headquarters | National Capital Region, India |
| Number of Employees | 512 (2024) |
| Parent Organization | Power Finance Corporation |
| Revenue | ₹47,571.23 crores INR (US$6.0 billion, 2024) |
| Subsidiaries | REC Power Development and Consultancy Limited |
| Stock Symbol (NSE) | RECLTD |
| Key Focus Areas | Power financing, rural electrification, renewable energy |
Current Market Overview of REC Limited Share (RECLTD)
As of November 2024, REC Limited (RECLTD) share has shown a mixed performance. It is down by -1.2% today, and has declined by -2.37% over the past week and -8.21% over the past month. Over the past three months, the share has fallen by -10.88%. However, it has experienced a strong growth of +50.47% over the past year and an impressive +371.36% over the past three years. Remarkably, over the past five years, the share has surged by +399.66%.
REC Limited Share Fundamental Data
- Open: ₹502
- High / Low: ₹654 / ₹330
- Market Cap: ₹1,32,280 Crore
- P/E Ratio: 8.89
- Book Value: ₹279
- Dividend Yield: 3.19%
- ROCE: 10.0%
- ROE: 22.2%
- Face Value: ₹10.0
The Market Position of REC Limited (RECLTD) Share as of November 2024
| Time Period | Returns of REC Share |
|---|---|
| Today | -1.2% |
| Past 1 Week | -2.37% |
| Past 1 Month | -8.21% |
| Past 3 Months | -10.88% |
| Past 1 Year | +50.47% |
| Past 3 Years | +371.36% |
| Past 5 Years | +399.66% |
REC Limited Share Price Target in 2024, 2025, 2026, 2027, 2028, 2029, 2030
REC Limited Share Price Target in 2024
The share price target for REC Limited in 2024 is projected at ₹730, reflecting steady growth driven by its pivotal role in financing power projects and its solid market position.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2024 | ₹720 | ₹730 |
REC Limited Share Price Target in 2025
In 2025, the share price target for REC is expected to rise to ₹1,120, supported by continued infrastructure development and strong financial performance.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2025 | ₹1,110 | ₹1,120 |
REC Limited Share Price Target in 2026
For 2026, the share price target for REC is projected at ₹1,280, driven by its growing involvement in renewable energy financing.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2026 | ₹1,270 | ₹1,280 |
REC Limited Share Price Target in 2027
By 2027, REC’s share price is expected to reach ₹1,470, showcasing robust growth in the energy sector and its expanding market presence.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2027 | ₹1,460 | ₹1,470 |
REC Limited Share Price Target in 2028
In 2028, the share price target for REC is projected at ₹1,680, reflecting its strengthened role in India’s power infrastructure and clean energy initiatives.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2028 | ₹1,670 | ₹1,680 |
REC Limited Share Price Target in 2029
REC’s share price target for 2029 is estimated at ₹1,920, driven by sustained growth and strategic investments in energy development.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2029 | ₹1,910 | ₹1,920 |
REC Limited Share Price Target in 2030
For 2030, the share price target for REC is projected to reach ₹2,190, highlighting its solid standing in the power sector.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2030 | ₹2,180 | ₹2,190 |
Financial Health and Performance Analysis of REC Ltd. (FY 2020 – FY 2024)
FY 2024
| Metric | FY 2024 | Y/Y Growth |
|---|---|---|
| Total Revenue | ₹47,571.23 Cr | +20.37% |
| Total Expenses | ₹29,611.29 Cr | +15.57% |
| Profit after Tax (PAT) | ₹14,145.46 Cr | +26.67% |
| Operating Profit Margin | 100.84% | +5.52% |
| Net Profit Margin | 29.77% | +1.49% |
| Basic EPS (₹) | ₹53.59 | +26.67% |
FY 2023
| Metric | FY 2023 | Y/Y Growth |
|---|---|---|
| Total Revenue | ₹39,520.16 Cr | +0.46% |
| Total Expenses | ₹25,622.49 Cr | -4.74% |
| Profit after Tax (PAT) | ₹11,166.98 Cr | +11.27% |
| Operating Profit Margin | 95.32% | +7.49% |
| Net Profit Margin | 28.28% | +2.73% |
| Basic EPS (₹) | ₹42.28 | – |
FY 2022
| Metric | FY 2022 | Y/Y Growth |
|---|---|---|
| Total Revenue | ₹39,339.20 Cr | +10.58% |
| Total Expenses | ₹26,896.86 Cr | +8.48% |
| Profit after Tax (PAT) | ₹10,035.70 Cr | +19.78% |
| Operating Profit Margin | 87.83% | -2.93% |
| Net Profit Margin | 25.55% | +1.99% |
| Basic EPS (₹) | ₹50.82 | +19.87% |
FY 2021
| Metric | FY 2021 | Y/Y Growth |
|---|---|---|
| Total Revenue | ₹35,575.40 Cr | +18.66% |
| Total Expenses | ₹24,793.84 Cr | +7.99% |
| Profit after Tax (PAT) | ₹8,378.24 Cr | +68.50% |
| Operating Profit Margin | 90.76% | +3.93% |
| Net Profit Margin | 23.56% | +7.98% |
| Basic EPS (₹) | ₹42.42 | +15.65% |
FY 2020
| Metric | FY 2020 | Y/Y Growth |
|---|---|---|
| Total Revenue | ₹29,981.20 Cr | +17.89% |
| Total Expenses | ₹22,960.36 Cr | +32.33% |
| Profit after Tax (PAT) | ₹4,972.27 Cr | -13.40% |
| Operating Profit Margin | 86.98% | – |
| Net Profit Margin | 16.62% | – |
| Basic EPS (₹) | ₹25.18 | – |
Analysis Summary:
- Total Revenue: REC has shown consistent revenue growth, with a notable increase of 20.37% in FY 2024. This follows growth of 0.46% in FY 2023 and 10.58% in FY 2022.
- Total Expenses: Expenses increased by 15.57% in FY 2024, marking a more controlled rise compared to the 32.33% jump in FY 2020. This shows REC’s efforts to manage costs effectively.
- Profit After Tax (PAT): PAT growth has been strong, with a significant 26.67% increase in FY 2024, continuing the upward trajectory from previous years.
- Operating Profit Margin: The operating profit margin improved to 100.84% in FY 2024, demonstrating high operational efficiency.
- Net Profit Margin: The net profit margin showed a slight improvement in FY 2024, reaching 29.77%, up from 28.28% in FY 2023.
- Basic EPS: Basic EPS grew by 26.67% in FY 2024, signaling strong earnings per share growth.
How to Buy REC Shares:
- Choose a Broker: Select a trusted brokerage platform that offers REC shares.
- Open a Trading Account: Set up a trading and Demat account with the chosen broker.
- Complete KYC: Submit the required documents to verify your identity.
- Deposit Funds: Fund your account with the amount you wish to invest.
- Search for REC Shares: Look for REC shares on your brokerage platform.
- Place an Order: Enter the quantity of shares you wish to purchase and the type of order (market or limit).
- Confirm Purchase: Double-check the order details and confirm the purchase.
- Monitor Investment: Track your investment and adjust your portfolio as necessary.
REC Limited Share Price Forecast for the Next 5 Years
REC Limited is poised to experience consistent growth over the next five years, driven by its strong financial performance, strategic investments in energy infrastructure, and increasing involvement in renewable energy financing. As the company continues to play a critical role in India’s energy sector, its share price is expected to steadily rise.
| Year | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| 2024 | ₹720 | ₹730 |
| 2025 | ₹1,110 | ₹1,120 |
| 2026 | ₹1,270 | ₹1,280 |
| 2027 | ₹1,460 | ₹1,470 |
| 2028 | ₹1,670 | ₹1,680 |
Shareholding Pattern of REC Limited
Promoters:
- Percentage: 52.63%
- % Change QoQ: 0.00%
Pledge:
- Percentage: 0.00%
- % Change QoQ: 0.00%
Foreign Institutional Investors (FII):
- Percentage: 21.22%
- % Change QoQ: +0.79%
Domestic Institutional Investors (DII):
- Percentage: 14.18%
- % Change QoQ: -0.48%
Mutual Funds (MF):
- Percentage: 8.94%
- % Change QoQ: -0.16%
Others:
- Percentage: 11.96%
- % Change QoQ: -0.31%
Pros and Cons of REC Limited
Pros:
- Strong Institutional Backing: REC enjoys solid support from both foreign and domestic institutional investors, demonstrating market confidence.
- Stable Promoter Holding: The promoters hold over 50% of the shares, indicating a strong commitment to the company’s future.
- Consistent Market Performance: REC has a solid market position, supported by its pivotal role in financing power infrastructure.
Cons:
- Lack of Dividend Payout: Despite robust financials, REC does not pay dividends, which may deter income-focused investors.
- Limited Shareholder Diversity: A large portion of the shares are concentrated in the hands of promoters and institutional investors, limiting public ownership.
- Moderate FII Growth: While FIIs have increased their stake, the growth has been relatively modest compared to the overall market performance.
Peer Comparison of REC Limited: Finance Sector
| Name | Share Price (₹) | Market Cap (₹ Cr) |
|---|---|---|
| I R F C | 139.66 | 182,514.75 |
| Power Fin. Corpn. | 454.70 | 150,055.63 |
| REC Ltd | 502.35 | 132,280.01 |
| Indian Renewable | 189.86 | 51,029.90 |
| IFCI | 57.78 | 15,101.33 |
| Tour. Fin. Corp. | 145.74 | 1,349.49 |
| Guj. State Fin. | 22.97 | 204.69 |
FAQs:
- How can I track my REC Limited investment?
Investors can track their REC Limited shares through their stock broker’s platform or by checking the stock exchange website for real-time updates. - Can I buy REC Limited shares online?
Yes, REC Limited shares can be purchased online through various stock broking platforms or mobile trading apps. - What is REC Limited?
REC Limited is a public sector financial company that primarily focuses on financing power sector projects, including renewable energy, across India. - How to buy REC Limited shares?
REC Limited shares can be bought through stock brokers or online trading platforms. Investors need to open a Demat account with a registered broker. - Is REC Limited a government company?
Yes, REC Limited is a government-owned company and is listed on major stock exchanges in India.
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