Financial Services · NSE/BSE: RECLTD

REC Limited

Financial Institution
Market Cap ₹0.94L Cr
Verdict: High

Quality Scores

Multi-Bagger
74/100
Compounder Quality
89/100
Management Credibility
85/100
Governance
88/100
Cash Flow Quality
65/100

AI Summary

REC Limited (RECLTD) is a Maharatna Central Public Sector Undertaking (PSU) and a leading Infrastructure Finance Company specializing in the Indian power sector. Over the last decade, it has evolved from a rural electrification agency into a diversified financier of generation, transmission, distribution, and recently, renewable energy and non-power infrastructure. The company maintains an dominant market position alongside Power Finance Corporation (PFC), which now acts as its promoter. With a loan book approaching ₹5 lakh crore, REC plays a systemic role in India's energy transition. The…

Top Opportunities

  • Consistent 20% ROE profile
  • Strategic role in India's Power Sector roadmap
  • Sovereign-linked credit rating supporting low cost of funds

Top Risks

  • Persistently negative Operating Cash Flow (CFO)
  • Extremely high sector concentration risk in Power
  • Increasing absolute debt levels (exceeding 5 Lakh Cr)

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