REC Shares hits over 8% as breakout Stock has given fourfold profit in last 1 year

REC Shares: REC Share Price on NSE/BSE

REC shares have performed very well on Thursday May 2. Stocks gained almost 10% and closed at Rs 553.90 while the stock opened at Rs 537.00. The reason for such a surge in REC shares was that the company had declared the results of January-March quarters on Tuesday. REC is a power company which finances and promotes power projects.

Talking about today, REC share opened at Rs 558.00 and traded at Rs 559.05 and closed at Rs 558.90. In the last year, REC has given nearly 4 times profit and has made its investors very rich. And after this, such a sharp increase has been seen in its shares and in the last 2 trading days, REC shares have given a return of almost 18%.

Strong Q4 results of REC Shares

The company had declared its January-March quarter results on Tuesday, after which REC shares have seen a significant jump. REC shares have performed very well this year 2024 as compared to the previous quarter result. REC’s net profit has increased by 33% and net income has grown by 25%. There has been a significant profit in the net profit of REC stocks.

The company has also announced interim dividend which is Rs 5 per share. In the results of quarter 4 of this year the gross income of this company was 2.71% and in December it was 2078%. Amidst this, NPA loss has also increased from 0.86% to 0.82% while the net profit is Rs 4079 crore which was Rs 3065 crore last time.

REC’s operational revenue has taken a hit of 25% and has reached Rs 12,613 crores whereas in the last period this revenue was Rs 10,113 crores. REC company’s chairman and managing director VK Devangan has said that in the coming time the company will increase the net interest to more than 3.55%. The chairman also said that the company has a very strong and selective thinking about taking projects outside the power sectors and the company will accept these projects only if they are good projects.

Financial Metrices of REC Stock

Today REC shares started the day at Rs 558.00 and the high for the day was Rs 567.15 and low was Rs 553.35. Total market capitalization is Rs 1.48LCr. REC stock hit a new 52-week high record of Rs 567.15 and the stock’s 52-week low is Rs 127.40. Currently the company is providing a dividend yield of 2.74% and also announced to provide interim dividend of Rs 5 per share. On the other hand, it is providing the sector dividend yield of 0.85%. PE ratio of REC shares is 10.31 and sector PE ratio is 18.42. PB ratio of stock is 2.51 and sector PB ratio is 2.91.

Peer comparison of REC Stock

Financial growth history of REC Stock

REC (Rural Electrification Corporation) Limited Shares listed on both National Stock Exchange (NSE) and BSE (Bombay stock Exchange). If we check its financial growth history of REC (Rural Electrification Corporation) Ltd stock, it has given a return rate of 447.14% in the last 5 years and it has given a return rate of 308.25% in the last 1 year. In the last 6 months, REC (Rural Electrification Corporation) Ltd stock has given a return rate of 83.73% to its shareholders and now if we talk about Financial Year 24, it has performed very well in the last 1 month and has given a return rate of 17.94%.

In the last 5 years, REC (Rural Electrification Corporation) revenue growth higher by 11.75% as compared to the industry average growth rate of 10.82% and net income in the last 5 years highly increased by 20.2% as compared to the industry average growth rate of 10.87%. REC (Rural Electrification Corporation) market share has increased from 21.35% to 22.16%.

About REC (Rural Electrification Corporation) Ltd

REC Limited whose formal name is Rural Electrification Corporation Limited. This is a Power Finance Corporation Limited holding company. This Ministry of Power comes under the ownership of the Government of India. REC Limited was established on 25 July 1969 and it finances and promotes power projects throughout India. The headquarters of REC is in New Delhi, India. Its subsidiaries are REC Transmission Projects Company Limited (RECTPCL), REC Power Distribution Company Limited (RECPDCL).

REC Share Price Target for 2024

Share price target of REC for 2024 could be an estimation which depends upon technical factors such as market trends, future aspects. So, predicted share price target of REC by the end of 2024 could be Rs 810.00.  

REC Share Price Target for 2025

Share price target of REC for 2025 could be predicted by the end of the year of Rs 950.00.

REC Share Price Target for 2026

Share price target of REC for 2026 could be of Rs 1515.00.

REC Share Price Target for 2030

Share price target of REC for 2030 could be of Rs 1875.00.

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