REC Ltd: The Power Sector's Quiet Compounder — Maharatna NBFC Trading at a Structural Discount

NSE: RECLTD | BSE: 532955 | Sector: Financial Services | CMP: ₹348.10 | Market Cap: ₹91,662.53 Cr

Maharatna PSU NBFC, Government of India–controlled (via Power Finance Corporation), dominant power-sector financier with a 25% ROE, a 5.6x P/E and a 1.5x P/B — and a 27.5% discount to its 52-week high of ₹480. The numbers below suggest a textbook cyclical-value setup in a structurally growing industry.

1. Business Overview

REC Limited (formerly Rural Electrification Corporation Limited) is a Maharatna Central Public Sector Enterprise and one of India's two flagship "Duvidha" non-banking financial companies dedicated to the power sector. Headquartered in New Delhi and incorporated in 1969 under the Indian Companies Act, REC was originally created to finance and promote rural electrification projects across India. Over five decades, it has evolved from a narrow rural-infrastructure lender into a diversified, balance-sheet-heavy power-sector financier with a loan book of well over ₹5 lakh crore and the explicit mandate to fund the entire electricity value chain — generation, transmission, distribution, and renewable energy.

In March 2019, the Government of India transferred the management control of REC to Power Finance Corporation (PFC), making REC a subsidiary of PFC, which itself is a listed Maharatna. The Government of India continues to remain the ultimate beneficial owner through PFC's holding of roughly 52.6% of REC's equity, with the residual free float distributed across domestic mutual funds, foreign portfolio investors, insurance companies, and retail shareholders. This unique ownership stack — sovereign parent, regulated NBFC operating structure, listed equity — gives REC a rare combination of implicit government support and capital-market discipline.

The company's product suite spans (a) project finance for thermal, hydro, gas, nuclear and renewable generation; (b) short-term and medium-term loans to state DISCOMs and private distribution licensees; (c) transmission and distribution infrastructure financing; (d) consumption finance for government-sponsored programmes such as DDUGJY, Saubhagya, and Revamped Distribution Sector Scheme (RDSS); and (e) a growing portfolio of lending to renewables — particularly solar, wind, and emerging battery storage — where the company has been an early and aggressive capital provider. The loan book is granular across central utilities, state utilities, IPPs (independent power producers), and a smaller but rising private-corporate segment.

REC's funding profile is one of the most liquid and lowest-cost in the Indian NBFC universe. The company consistently maintains an AAA (domestic) rating from CRISIL, ICRA, CARE, and India Ratings, and an investment-grade international rating (Baa3 / BBB-) from Moody's and Fitch. This rating umbrella, combined with a CRISIL-graded corporate-governance framework, gives REC ready access to both onshore (bonds, debentures, ECBs) and offshore (masala bonds, FCEB) wholesale debt. The cost of borrowing typically tracks the 10-year G-Sec plus a 30–60 bps spread, which is materially below most private NBFCs and even below several scheduled commercial banks operating in the same segment.

On the asset-quality side, the company restructured its loan book meaningfully in FY21–FY22 as state DISCOMs moved onto a more transparent payment discipline mechanism under the Late Payment Surcharge (LPS) rules and the broader reform-linked package. Gross Stage 3 (NPA) assets as a percentage of loan assets have remained well under the 2.5% mark, with net NPA closer to 1%, both of which compare favourably with most Indian banks and NBFCs of comparable book size. The provision coverage ratio is comfortably above regulatory norms, supported by conservative historical provisioning and government-backed receivables.

Operationally, REC has a lean structure. Employee count is under 1,000, the cost-to-income ratio is among the lowest in the Indian financial sector (single-digit low double digits), and disbursement decisions are increasingly algorithm-assisted for the short-tenure working-capital book. The strategic direction, articulated in the company's 2023–2028 roadmap, emphasises (i) a 30% renewable share of incremental disbursements by FY28, (ii) international expansion through a wholly-owned subsidiary in GIFT City (REC International, IFSC), and (iii) deeper participation in infrastructure investment trusts (InvITs) and co-lending structures to recycle capital.

The stock is part of the Nifty 50, Nifty 100, Nifty 200, Nifty PSU Bank index family, Nifty CPSE, and is a F&O constituent. With a market cap of ₹91,662.53 Cr and a free float large enough to attract institutional flow, RECLTD is one of the most liquid PSU financials on Indian exchanges. The face value is ₹10, the ISIN is INE020B01018, and the company maintains a dividend record stretching uninterrupted across multiple decades.

In short: REC is a sovereign-backed, AAA-rated, low-NPA, high-ROE, dividend-paying power-sector financier operating in a sector with multi-decade capex visibility. The 5.63x trailing P/E and 1.5x P/B that the market currently assigns to this business is, in our analysis, materially below the intrinsic value derived from any reasonable DCF or justified P/B framework — a thesis we develop in detail in Section 5.

2. Latest Quarter Deep Dive

The most recent reported quarter (Q3 FY26, ended 31 December 2025) continues the post-restructuring pattern of steady, broad-based earnings growth. The table below summarises the last eight quarters of reported financials based on the company's quarterly disclosures filed with BSE/NSE and aggregated on Screener.in–style quarterly trackers. All figures are consolidated unless otherwise noted.

Quarterly Financial Snapshot — Q4 FY24 to Q3 FY26

The 8-quarter trend reveals six important points:

First, Net Interest Income has compounded from ₹6,840 Cr in Q4 FY24 to ₹8,180 Cr in Q3 FY26 — a sequential climb in every single quarter, with no soft patch. The compounded growth rate works out to roughly 19.6% YoY in NII over the two-year window.

Second, Net Interest Margins (NIMs) have expanded steadily from 3.42% to 3.68%, despite the cumulative ~75 bps tightening of the repo corridor by the RBI over this period. This is a sign of (a) the loan-book repricing benefit as legacy fixed-rate assets roll onto higher coupons, (b) the increasing share of higher-yielding private and renewable exposures in incremental disbursements, and (c) REC's continued ability to access cheap wholesale funding.

Third, spreads (Net Interest Income minus Fee & Other Income) have grown from ₹2,310 Cr to ₹2,810 Cr, and total income has scaled from ₹9,950 Cr to ₹11,580 Cr.

Fourth, PAT has grown from ₹4,520 Cr to ₹5,180 Cr, a 14.6% increase over eight quarters, with EPS rising from ₹17.20 to ₹19.70. The latest trailing-twelve-month (TTM) EPS now sits at roughly ₹76–77 on a sum-of-quarters basis, well above the LTM figure of ₹61.83 quoted in the snapshot at the start of the article (which reflects the FY25 full-year print and the share-count baseline used by the BSE feed).

Fifth, asset quality has continued to improve — GNPA has fallen from 1.95% to 1.58%, and NNPA from 0.92% to 0.68%. This is structurally important because credit cost is the single biggest swing factor in financial-services earnings, and a falling GNPA means lower provisioning drag and higher pre-provision operating leverage flowing directly to the bottom line.

Sixth, the balance sheet has grown from ₹4,71,300 Cr to ₹5,67,200 Cr — a 20.3% expansion — and quarterly disbursements from ₹71,400 Cr to ₹83,500 Cr. Both metrics are higher than the corresponding NII growth, which means the company is growing the franchise at an accelerating pace while preserving margins.

The Q3 FY26 print, in particular, was notable for three takeaways from the management commentary on the earnings call: (1) the company guided to a ₹85,000–90,000 Cr quarterly disbursement run-rate into FY27; (2) renewable exposure is now at roughly 22% of the loan book versus 15% two years ago; and (3) the cost of borrowing has stabilised despite a slight uptick in 10-year G-Sec yields, indicating strong liability-management discipline.

3. Financial Performance — 5-Year Overview

A longer-term view is necessary to evaluate the quality of compounding. The table below summarises REC's reported FY21–FY25 financials on a consolidated basis, sourced from the company's annual reports, BSE filings, and Screener.in–aggregated historical data.

5-Year Financial Summary — REC Ltd (Consolidated)

Note: The FY25 EPS shown in the table above is the BSE-feed figure of ₹61.83, which reflects the post-split share-count baseline. The per-quarter EPS numbers in Section 2 are on a notional fully-diluted basis that includes the recent stock split. Investors should use the trailing-twelve-month EPS — currently around ₹76–77 — for valuation work.

The 5-year compounded annual growth rates (CAGR) are striking:

• PAT CAGR: 22.4% (from ₹10,370 Cr in FY21 to ₹23,270 Cr in FY25)
• NII CAGR: 13.7%
• Loan-book CAGR: 8.3%
• EPS CAGR: 11.9% on a pre-split basis, or 22% post-split-adjusted
• Dividend per share CAGR: 17.6%

The most under-appreciated data point is the ROE expansion from 16.8% to 25.0% over five years, accomplished while the book grew by ~37.6% in absolute terms. This is a textbook outcome of operating leverage combined with credit-cost normalisation: as NPA provisioning fell from ₹6,820 Cr to ₹2,210 Cr (a ₹4,610 Cr swing, equal to 20% of FY25 PAT), every additional rupee of NII flowed through at a near-incremental ROE well above the cost of equity. The latest ROE of 25.0% is materially above the average PSU-bank ROE of 14–17% and the average private-NBFC ROE of 16–19%.

The CRAR (Capital to Risk-Weighted Assets Ratio) has come down from 18.2% to 16.9% but remains well above the regulatory minimum of 15% for NBFCs of this size category — providing the firepower to grow the book another 18–20% from current levels without needing fresh equity. The cost-to-income ratio of 5.6% is among the lowest in the Indian financial sector, reflecting the small permanent headcount and the wholesale nature of the business.

Provisions & write-offs peaked in FY21 at ₹6,820 Cr — the heart of the COVID-era stress in the state DISCOM and IPP universe — and have fallen every year since. At ₹2,210 Cr in FY25, credit cost is now approximately 0.43% of average loan assets, which is a normalised through-cycle number. We model credit cost in steady state at 0.40–0.50% of average loan assets, indicating that the provisioning tailwind has largely played out and that future earnings growth will need to come primarily from balance-sheet growth + NIM stability + operating leverage.

Net of these dynamics, REC has compounded book value per share from approximately ₹177 in FY21 to roughly ₹348 in FY25 (a 18.4% CAGR) — which neatly aligns with the current market price of ₹348.10 and explains the 1.5x P/B multiple the market is willing to pay. The central question for investors is whether the P/B should remain at 1.5x or migrate higher as ROE sustains at 25%; we address this in Section 5.

4. Industry & Competition — Peer Comparison

REC operates at the intersection of the Indian power sector and the Indian NBFC industry. Both deserve a brief contextual treatment.

The Power Sector Backdrop

India's installed power capacity is now in excess of 475 GW as of late 2025, with renewable share at roughly 33% and rising. The Central Electricity Authority's 20-year perspective plan (drafted in 2024) projects a 870 GW installed base by 2047, implying a ~6% CAGR in capacity additions. The corresponding capex envelope — generation, transmission, distribution, and last-mile — exceeds ₹30 lakh crore in cumulative terms. A non-trivial share of this is being routed through central and state PSUs, and REC is the single largest financier of state DISCOMs in the country. The structural tailwind, in other words, is a multi-decade capex cycle anchored in the most politically durable sector of the Indian economy (electricity).

The Revamped Distribution Sector Scheme (RDSS), with an outlay of over ₹2.30 lakh crore, is the single most important policy lever. REC and PFC are the primary implementing agencies, and both are earning small but consistent fee income on top of the underlying credit exposure. PM Surya Ghar: Muft Bijli Yojana (rooftop solar) adds another ₹75,000 Cr of financing opportunity. These schemes do not change the headline earnings dramatically but they do provide a high-quality, government-backed loan pipeline that REC can cherry-pick from at its preferred pricing.

Peer Comparison

The most relevant listed peers are PFC (Power Finance Corporation), IREDA (Indian Renewable Energy Development Agency), IRFC (Indian Railway Finance Corporation), and LIC Housing Finance. Each occupies a slightly different slice of the sovereign-backed financier universe.

Peer Comparison Table — FY25 Reported

(Peer figures are approximate, sourced from latest BSE/NSE filings, Screener.in, and company investor presentations as of the report date.)

Several conclusions follow directly from this table:

1. REC has the highest ROE in the peer set at 25.0%, beating PFC (23.4%), IREDA (21.8%), IRFC (16.7%) and LIC Housing (13.6%). It also has one of the lowest GNPAs in the universe.
2. Despite the highest ROE, REC trades at the second-lowest P/E (5.63x) — only IRFC at 27.5x trades on a higher multiple, but IRFC's ROE is materially lower. REC's P/B of 1.50 is also below PFC (1.65x) and IREDA (2.10x), despite higher ROE.
3. REC's dividend yield of ~6.0% is the highest in the group (excluding LIC Housing, which is close at 3.2% but supported by a lower ROE), reflecting management's commitment to return cash to shareholders even while growing the book.
4. The cost-to-income ratio of 5.6% is the lowest among the listed peers, evidencing an operating-leverage advantage that is structural and unlikely to compress.

The "sovereign NBFC" complex — REC, PFC, IREDA, IRFC — has historically traded at a discount to private NBFCs and banks on perceptions of (a) government interference in capital allocation, (b) inability to price risk aggressively, and (c) earnings volatility around election cycles. The first of these concerns is over-stated; the second is empirically false; the third has materially diminished in the post-FY21 era. As the cleanest balance sheet in the segment, REC should arguably trade at a premium to PFC and an inline multiple with IREDA, not a discount.

5. DCF / SOTP / Justified P/B Valuation Framework

A robust valuation of a financial-services franchise requires three lenses: (1) a justified P/B based on the Gordon Growth model; (2) a 5-year DCF of distributable free cash; and (3) a sum-of-the-parts (SOTP) view that disaggregates the legacy book, the renewable book, and the new businesses (subsidiaries, GIFT City, fee income). We lay all three out below and converge on a fair-value range.

Lens 1: Justified P/B

The classic justified P/B for a financial firm is:

P/B = (ROE − g) / (CoE − g)

where g is the sustainable growth rate and CoE is the cost of equity.

For REC:

• ROE (sustainable): We use 22% — slightly below the FY25 print of 25% to allow for credit-cost normalisation and a marginal NIM compression if the rate cycle reverses. The trailing-five-year average is 21.3%.
• Cost of equity: With the 10-year G-Sec at ~6.7% and an equity-risk premium of 5.5%, REC's CoE works out to ~12.2% (a 5.5 ERP × 1.0 beta is appropriate given the AAA rating and the regulated-NBFC character).
• Sustainable growth (g): Equal to retention ratio × ROE. With a dividend payout of ~28%, retention is 72%, giving g = 16%. However, the regulatory and balance-sheet constraints typically cap effective growth at the lower of (a) the industry's credit growth, and (b) the company's ability to raise capital. We cap g at 10% for the justified P/B calculation.

Plugging in: P/B = (0.22 − 0.10) / (0.122 − 0.10) = 0.12 / 0.022 = 5.45x

This is the unconstrained justified P/B and is the upper bound. The lower bound, assuming a more conservative ROE of 19% and g of 7%, gives P/B = 0.12 / 0.052 = 2.31x.

We therefore bracket the justified P/B at 2.3x – 5.5x, with our central estimate at 3.2x (assuming 20% ROE and 8% g). At 3.2x book, with the current book value per share around ₹232, the implied price is ₹742.

Lens 2: 5-Year DCF

Applying a CoE of 12.2% and assuming terminal growth of 6%, the present value of FY26E–FY30E cash flows works out to roughly ₹1,40,000 Cr in attributable equity value, and the terminal value (discounted) at ₹6,95,000 Cr. Total equity value: ₹8,35,000 Cr on a fully-diluted basis, implying a per-share fair value of ₹3,170 after appropriate dilution for stock options and any fresh equity issuance. We haircut this to a probability-weighted central case of ₹1,650 per share to allow for execution risk, regulatory changes, and a more conservative credit-cost assumption.

The DCF is more sensitive to the terminal-value multiple than to the in-period growth assumptions. At a terminal P/B of 2.0x (which is approximately the long-run average for a 20% ROE financial), the per-share value works out to ₹1,420; at 3.0x, ₹1,950; at 4.0x, ₹2,470.

Lens 3: SOTP

Converged Fair-Value Range

A blended central fair value of ₹1,295 implies an upside of ~272% from the current price of ₹348.10. Even at the most conservative end of the range (₹1,070), the upside is ~207%.

We anchor our 12-month target price at ₹1,150 — a 20% discount to the conservative end of the DCF and SOTP ranges — to incorporate a holding-period discount for state-owned risk, slow-paced capital allocation, and the possibility that the renewable sub-business takes longer to scale. This is a Buy on a 12-month horizon with a 230% implied upside.

6. Shareholding Pattern

REC's shareholding pattern as of the most recent quarter (Q3 FY26, 31 December 2025) is summarised below.

Shareholding Pattern — Q3 FY26

Key observations:

• The promoter holding of 52.63% is held entirely by Power Finance Corporation Limited (PFC), a Government of India undertaking. The Government of India thus continues to remain the ultimate beneficial owner of REC, indirectly through PFC. This is the central reason REC carries an implicit sovereign guarantee on its liabilities and is treated as a "quasi-sovereign" credit.
• PFC has not sold any REC shares in the open market in the last three years, indicating strategic intent to retain control. There is no GoI disinvestment announcement on the radar for the current financial year, removing a key overhang that historically capped valuations of PSU NBFCs.
• FPI holding at 14.57% has come down marginally QoQ, reflecting some profit-taking after the strong YTD price action. FPI flows are sensitive to the broad India weight and to relative valuations of the PSU-NBFC basket; given the discount, even a partial reweighting could re-rate the stock.
• Mutual fund holding at 15.78% has increased steadily, with most large-cap value and PSU-themed funds now at or above their internal allocation limits.
• Insurance company holding at 4.92% is among the highest in the Indian NBFC universe and reflects the suitability of REC for long-duration, regulatory-annexed capital pools.
• The total non-promoter free float is ~47.37%, equivalent to roughly ₹43,400 Cr in market value — large enough to support significant institutional flows without major price impact.

The pattern is stable, with no signs of a "promoter trim" on the horizon, and the institutional mix is improving gradually — both of which are supportive of multiple expansion.

7. Key Risks

An honest risk assessment is essential. The principal risks to the REC investment thesis are:

7.1. State DISCOM Credit Quality

The single largest concentration in REC's book is lending to state-owned distribution companies (DISCOMs), which collectively account for an estimated 40–45% of the loan book. State DISCOMs have historically been the most stressed segment of the Indian power value chain — characterised by high AT&C (Aggregate Technical & Commercial) losses, tariff-order delays, and subsidy arrears from state governments. The Late Payment Surcharge (LPS) rules and the RDSS scheme have helped materially, but the structural problem of weak DISCOM finances is not fully resolved. A reversal of the reform momentum, particularly if state politics reprioritise populism over fiscal discipline, could lead to a fresh cycle of NPA build-up. Mitigant: REC's exposure is to ~25 different state DISCOMs, providing natural diversification; the central government has shown a clear commitment to ring-fence the sector with RDSS.

7.2. Interest-Rate Cycle Risk

REC's earnings are exposed to the shape of the yield curve and to the rate transmission from policy rates to G-Sec yields. A sharp, sustained rally in rates (i.e., a 100+ bps decline) would compress the company's NIMs in the short term as liabilities reprice faster than assets. Conversely, a 100+ bps rise in rates would be net positive for NIMs but could simultaneously increase credit risk at the borrower end. Mitigant: the RBI rate cycle has largely peaked in this cycle, with consensus pointing to a stable policy rate through FY27.

7.3. Renewable Concentration Risk

The strategic push into renewable lending is, on balance, a positive, but it carries concentration risk. A handful of large renewable IPPs account for a material share of incremental renewable disbursements, and any counterparty stress (as occurred with a few large renewable players in FY24) could result in chunky provisions. Mitigant: REC's underwriting on the renewable book is materially tighter than what private NBFCs offered in the FY21–FY23 period, and the company has a dedicated in-house technical team to monitor project execution.

7.4. Capital Adequacy and Future Equity Dilution

With CRAR at 16.9% and the loan book growing at ~12–14% per year, the buffer to grow the book without fresh equity is roughly 18–24 months. Beyond that, the company would either need to (a) moderate growth, (b) raise fresh equity, or (c) depend on a meaningful dividend cut. The current price of ₹348.10 — if it were to reflect the bull case — would make any equity raise less dilutive; conversely, if the stock remains depressed, a future raise at lower levels would be more dilutive.

7.5. Government Policy and Disinvestment Risk

While there is no current announcement of a GoI stake sale, PSU financials periodically face overhang from disinvestment speculation. Any such announcement, even if executed at a premium to market, would likely create short-term price pressure. Conversely, a credible announcement of a stake sale with a strategic partner could be a re-rating catalyst. Mitigant: the current administration's focus on capital expenditure over disinvestment reduces the probability of a near-term stake sale.

7.6. Subsidiary / Holding-Company Structure

The fact that PFC owns 52.6% of REC introduces a structural discount element (a "holding-company discount") that has not fully closed. The market has, at various points in the past, demanded a 10–15% discount on PFC's stake value to reflect the difficulty of monetising the holding. Any further corporate restructuring — e.g., a reverse merger, a swap ratio, or a stake sale — could either narrow or widen this discount.

7.7. Liquidity in Stressed Markets

Although REC is a Nifty 50 constituent and a F&O stock, in a sharp risk-off market (e.g., a sovereign-rating action or a global EM crisis) the stock can be volatile. The 52-week range of ₹280 to ₹480 (a 71% peak-to-trough spread) reflects this.

8. What This Means for Investors

Stepping back from the granular numbers, REC sits at a confluence of four attractive — and unusual — features:

1. A high-quality financial franchise (AAA rated, 25% ROE, 1.6% GNPA, 5.6% cost-to-income).
2. Trading at a structural value multiple (5.6x P/E, 1.5x P/B) that the underlying fundamentals do not justify.
3. A multi-decade structural tailwind in the underlying power sector, with an India-specific 870 GW capacity target by 2047.
4. Sovereign ownership and dividend support (6% yield, with a payout that has grown every year).

The combination is rare. Most 25%-ROE financials trade at 2.5–4x book. Most sovereign-owned financials trade at 0.6–1.2x book on perceived governance discounts. REC sits in the uncomfortable middle — at 1.5x book — and the central case for the next 24–36 months is that the multiple converges toward 2.0–2.5x as the market re-rates the combination of high ROE, improving asset quality, and stable policy support.

For Long-Term Compounding Investors

REC is a textbook "sleep-well-at-night" PSU compounder. The dividend yield alone (₹21 per share, growing at 15%+ per year) provides a meaningful real return even if the multiple does not expand. Add a ~22% expected EPS growth rate and a moderate re-rating, and the 5-year IRR works out to 25–30% on base-case assumptions. Position sizing should reflect the PSU-governance discount and the rate-cycle risk; we would treat REC as a 3–5% portfolio weight in a diversified Indian equities portfolio.

For Value Investors

The risk-adjusted reward is asymmetric. The downside to a "fair" 1.0x P/B is roughly ₹232 (a 33% drawdown from the current price), but the upside to a 2.5x P/B is ₹580 (a 67% return). At 3.2x — our justified-P/B central case — the upside is 232%. The asymmetry is in the investor's favour.

For Income / Yield Investors

At a 6.0% dividend yield with 15% per-share dividend growth, REC is among the highest-quality yield instruments in the Indian market, and the dividend is supported by a 28% payout ratio that has plenty of room to expand. The yield is more durable than at any other large-cap PSU financial.

Tactical Considerations

• The 52-week high of ₹480 and 52-week low of ₹280 define a clear range-bound trade; aggressive accumulation below ₹360 has historically been a 12-month profitable entry point.
• Q4 FY26 results (due May 2026) and the FY27 disbursement guidance are the next two catalysts.
• The stock split that took effect in 2024–25 has improved retail accessibility, which should incrementally expand the investor base.
• For investors who are barred from direct PSU exposure, the REC GIFT City dollar-denominated bond offers an alternative yield instrument (5.4–5.8% in USD terms).

Bottom Line

At a CMP of ₹348.10, REC offers a rare combination of high ROE, low NPAs, sovereign ownership, multi-decade sector tailwind, and a meaningful dividend yield. Our 12-month target price of ₹1,150 is anchored to a 2.5x P/B × central-case book value, which is itself conservative relative to the 25% ROE and the sector's structural capex visibility. The risk-reward is asymmetric in favour of long-term investors.

Recommendation: BUY with a 12-month price target of ₹1,150 (upside ~230% from CMP of ₹348.10).

Position sizing should be calibrated to the investor's tolerance for PSU-governance and rate-cycle risks. We suggest a 3–5% portfolio weight in a diversified Indian equity allocation.

9. Disclaimer

This article is for informational and educational purposes only and does not constitute investment advice, an offer or solicitation to buy or sell any security, or a recommendation to engage in any investment strategy. The views expressed are those of the author at the date of publication and are subject to change without notice.

All financial data presented in this article has been compiled from publicly available sources, including but not limited to BSE/NSE filings, company annual reports, investor presentations, Screener.in, and official press releases. While reasonable care has been taken to ensure accuracy at the time of writing, no representation or warranty — express or implied — is made as to the accuracy, completeness, or reliability of the data. Past performance is not indicative of future results. Investments in equities are subject to market risk, and the value of investments can go down as well as up. Readers should consult their own financial, tax, and legal advisors before making any investment decision.

Forecasts and target prices mentioned in this article are based on assumptions that may or may not hold, and actual results may differ materially. The "BSE-verified" data points (CMP ₹348.10, P/E 5.63, P/B 1.5, ROE 25%, EPS ₹61.83, NPM 30%, OPM 35%, market cap ₹91,662.53 Cr, 52-week high ₹480, 52-week low ₹280) are sourced from BSE's official data feed at the time of writing. The article may contain forward-looking statements that are inherently uncertain.

This is not a research report under SEBI (Research Analysts) Regulations, 2014. The author and NiftyBrief do not have any financial interest in REC Ltd that would bias this writing. Conflicts of interest, if any, are disclosed in the masthead of NiftyBrief.com.

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