REC Ltd

₹ 120 0.71%
28 Jun - close price
About

REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. [1]

Key Points

Services Offered
Loan for Generation Projects - Setting up new power generating stations based on conventional sources and renewable sources of energy.
Loan for Transmission Projects - Evacuation of power from new power generating stations and strengthening/ improvement of existing transmission systems in the designated areas.
Loan for Distribution Projects - Strengthening and improvement of the power sub-transmission and distribution system in the designated areas.
Short term loans/Medium term loans - Working capital requirements for purposes like purchase of fuel for power plant, purchase of power, purchase of material and minor equipment, system and network maintenance including repair of transformers etc. [1]

  • Market Cap 23,739 Cr.
  • Current Price 120
  • High / Low 169 / 110
  • Stock P/E 2.37
  • Book Value 260
  • Dividend Yield 10.6 %
  • ROCE 9.11 %
  • ROE 21.2 %
  • Face Value 10.0

Pros

  • Stock is trading at 0.46 times its book value
  • Stock is providing a good dividend yield of 10.57%.
  • Company has been maintaining a healthy dividend payout of 34.59%

Cons

  • Company has low interest coverage ratio.
  • Company might be capitalizing the interest cost

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
7,007 7,652 7,713 7,841 8,135 8,810 9,085 9,212 9,551 10,048 10,037 9,633
330 1,076 564 2,297 459 626 835 1,072 1,182 1,155 1,066 1,437
Operating Profit 6,677 6,576 7,148 5,544 7,676 8,184 8,250 8,139 8,368 8,893 8,971 8,196
OPM % 95% 86% 93% 71% 94% 93% 91% 88% 88% 88% 89% 85%
9 7 7 64 4 14 5 9 9 9 33 20
Interest 4,571 4,714 4,766 4,940 5,193 5,411 5,445 5,441 5,588 5,562 5,548 5,353
Depreciation 3 3 3 4 3 3 3 3 3 5 5 5
Profit before tax 2,113 1,867 2,386 664 2,484 2,784 2,807 2,704 2,787 3,335 3,452 2,857
Tax % 29% 29% 30% 29% 26% 21% 20% 23% 19% 19% 20% 19%
Net Profit 1,509 1,322 1,668 474 1,845 2,197 2,258 2,078 2,269 2,692 2,773 2,301
EPS in Rs 7.64 6.70 8.44 2.40 9.34 11.13 11.43 10.52 11.49 13.63 14.04 11.65

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
8,379 10,508 13,634 17,223 20,544 24,125 24,338 22,658 25,408 29,942 35,556 39,269
179 346 365 572 1,149 1,680 1,888 3,379 1,702 3,981 3,292 4,839
Operating Profit 8,200 10,162 13,270 16,650 19,395 22,445 22,450 19,279 23,705 25,961 32,265 34,430
OPM % 98% 97% 97% 97% 94% 93% 92% 85% 93% 87% 91% 88%
153 46 4 6 6 4 24 18 33 72 15 70
Interest 4,851 6,379 8,083 10,035 11,840 14,282 13,462 13,333 15,639 18,991 21,489 22,051
Depreciation 3 3 4 5 8 20 40 7 8 12 11 18
Profit before tax 3,499 3,826 5,186 6,617 7,552 8,147 8,972 5,958 8,090 7,030 10,780 12,431
Tax % 26% 26% 26% 28% 29% 30% 30% 25% 29% 29% 22% 19%
Net Profit 2,585 2,839 3,833 4,741 5,344 5,691 6,313 4,451 5,741 4,972 8,378 10,036
EPS in Rs 13.09 14.37 19.41 24.01 27.06 28.82 31.97 22.54 29.07 25.18 42.42 50.82
Dividend Payout % 29% 26% 21% 20% 20% 30% 30% 41% 38% 44% 30% 30%
Compounded Sales Growth
10 Years: 14%
5 Years: 10%
3 Years: 16%
TTM: 10%
Compounded Profit Growth
10 Years: 13%
5 Years: 10%
3 Years: 20%
TTM: 20%
Stock Price CAGR
10 Years: 2%
5 Years: -7%
3 Years: -10%
1 Year: -16%
Return on Equity
10 Years: 20%
5 Years: 18%
3 Years: 19%
Last Year: 21%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
987 987 987 987 987 987 1,975 1,975 1,975 1,975 1,975 1,975
Reserves 11,840 13,636 16,543 19,816 24,085 27,906 31,696 30,613 32,571 33,422 41,231 49,339
70,040 90,058 107,762 126,173 150,979 169,212 167,852 204,367 244,249 286,289 329,723 333,043
3,703 3,947 5,277 5,968 7,404 8,840 8,723 5,416 19,659 25,345 27,938 26,503
Total Liabilities 86,570 108,629 130,570 152,944 183,456 206,945 210,245 242,370 298,454 347,030 400,867 410,860
66 71 72 73 110 254 355 132 165 166 267 628
CWIP 3 8 9 10 10 78 166 129 199 288 336 6
Investments 837 733 638 1,690 1,596 2,352 2,617 2,948 2,463 2,386 1,981 2,190
85,665 107,817 129,851 151,170 181,740 204,261 207,108 239,162 295,627 344,190 398,282 408,035
Total Assets 86,570 108,629 130,570 152,944 183,456 206,945 210,245 242,370 298,454 347,030 400,867 410,860

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
-12,757 -15,825 -20,059 -17,244 -23,898 -13,278 6,805 -32,510 -35,866 -32,712 -43,512 -3,910
79 140 152 136 151 -756 -101 46 457 121 861 -287
14,150 18,166 16,059 16,815 23,098 15,291 -3,947 28,244 35,543 33,926 42,113 3,159
Net Cash Flow 1,473 2,481 -3,847 -293 -649 1,257 2,757 -4,220 134 1,336 -538 -1,038

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 1 1 1 1 2 4 7 2 2 1 1 1
Inventory Days
Days Payable
Cash Conversion Cycle 1 1 1 1 2 4 7 2 2 1 1 1
Working Capital Days -128 -92 -156 -103 -152 197 -3 -4 16 9 -2 35
ROCE % 11% 11% 12% 12% 12% 12% 11% 9% 9% 9% 9% 9%

Shareholding Pattern

Numbers in percentages

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
52.63 52.63 52.63 52.63 52.63 52.63 52.63 52.63 52.63 52.63 52.63 52.63
27.05 28.93 28.78 26.99 26.59 25.93 26.37 26.75 26.15 26.82 24.85 24.27
12.54 10.43 10.94 12.01 12.48 12.56 12.67 12.28 12.51 9.48 9.94 9.43
7.78 8.00 7.64 8.36 8.30 8.87 8.33 8.33 8.71 11.06 12.58 13.66

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