REC Ltd (RECLTD) – Complete Analysis Report:
REC Ltd trades at ₹339-354 with steady 3-day buying pressure from supports at ₹336-342, driven by strong Q2 profit growth and PSU awards. Moderate bullish signals amid consolidation support accumulation for power infra play.
Technical Analysis:
Stock holds above 14-day EMA ₹344 with pivot ₹342-350; resistance ₹360-375, support ₹336 (52-wk low zone). RSI/MFI neutral ~58 shows buying inflow, ADX 32 indicates trend strength; recent volume uptick confirms reversal from downtrend.
Fundamental Analysis:
Market cap ₹90,000-93,000 Cr, P/E 5.25-5.40 (industry 21), ROE 20.68-21.5%, ROCE 9.96%, dividend yield 5.08-5.23%. Q2FY26 profit ₹4,415 Cr (+9% YoY), revenue ₹15,153 Cr (+11% YoY); 5-yr sales CAGR 13%, profit 26% with low debt coverage concerns.
Recent Buying Pressure Reasons:
3-day buying follows Q2 results beat (profit +9% YoY) and PSU awards momentum; traders eye value at 1.09x P/B vs peers. Open interest buildup + moderate MFI signals position for bounce from 52-wk low amid power sector rotation.
Positive News & Events Impact:
PSU Transformation Awards (Dec 21): Won 4 accolades in cyber security, ESG, risk mgmt, website transformation boosting governance image.
ET Infra Award (Nov): Green financing for Mumbai Metro projects highlights infra leadership.
Q2FY26 Results: Profit ₹4,415 Cr (+9% YoY), revenue growth 11% supports FY26 guidance.
Impact: Reinforces Maharatna status, attracts FII/PSU flows; 3-yr return 232% vs Sensex 38%.
Positive Points:
Power infra financing leader (Maharatna PSU, 52.6% promoter holding).
High dividend payout 29-30%, trading at discount to book value.
Strong long-term growth: 5-yr stock CAGR 29%, healthy working capital cycle.
Negative Points:
Low interest coverage ratio, potential interest capitalization risks.
1-yr return -31%, near 52-wk low ₹331 amid sector pressure.
Quarterly profit dip QoQ in recent trends.
Disclaimer & Disclosure:
Investogainer Research (SEBI Reg INH000012856) provides educational analysis only. No buy/sell recommendations. Past performance no guarantee of future results. Consult certified advisor. No personal holdings in RECLTD. Risks include interest rate volatility, project delays.