Should I buy REC stock in 2025?

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At HelloSafe, our experts have been tracking the performance of REC for over three years. Every month, hundreds of thousands of users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by REC.

What is REC?

What is the price of REC stock?

The price of REC stock is stabilising this week. At present, REC trades at ₹393.65, having edged up by ₹0.50 (+0.13%) in the last 24 hours but marking a 2.45% decrease over the week. The company holds a market cap of ₹1,03,683 crores and an average 3-month daily volume of 6 million shares. It features a P/E ratio of 6.53, an attractive dividend yield of 4.06%, and a stock beta of 1.84, indicating significant volatility. These dynamics present both risks and promising opportunities for attentive investors in India’s infrastructure finance sector.

Our full analysis of the REC stock

Having carefully reviewed REC’s latest financial results and tracked the stock’s journey over the past three years, our analysis leverages a proprietary blend of financial indicators, technical charting, peer comparison, and macroeconomic inputs. This multifaceted approach allows us to deliver a forward-looking perspective tailored to the Indian capital markets. So, why might REC stock once again become a strategic entry point into the infrastructure and sustainable finance sector in 2025?

Recent performance and market context

Over the last year, REC stock has corrected by nearly 30%, trading currently at ₹393.65 as of July 2025. While this price is down from its previous 12-month highs, the company maintains a market capitalization of more than ₹1,03,683 crores and a resilient trading volume of about 6 million shares daily. The most recent quarterly report revealed a record net profit of ₹4,304 crores for Q4 FY25—marking a strong 5.6% year-over-year increase and culminating in a best-ever annual profit of ₹15,713 crores (+12% YoY). Market sentiment remains fundamentally constructive, underpinned by attractive yield propositions (4.06% dividend yield) and REC’s central role in India’s infrastructure renewal, even as broader market volatility persists. Amidst India’s ambitious energy transition and continued infrastructure investments, a stock like REC is especially positioned to benefit.

Technical analysis

Recent technical scans indicate that REC is currently consolidating after an extended downtrend. The stock is trading beneath all significant moving averages (20-, 50-, 100-, and 200-day), which suggests caution in the near term but also highlights potential for a base formation. Key technical levels are in focus: strong support at ₹383.3 and resistance at ₹404. The RSI stands at 43.01, indicating that the stock is closer to being oversold than overbought—often a favorable condition for bullish reversal setups. The MACD remains negative, but stabilization in the indicator hints at a potential bottoming process. For investors with a patient, value-oriented approach, these technical conditions may represent an appealing entry zone, especially as positive news or strong earnings could prompt recovery.

Fundamental analysis

REC’s financial strength is clear and compelling. The company posted revenues of ₹14,947 crores for the March 2025 quarter and delivered a net profit of ₹15,713 crores for the full year—both record figures. The five-year revenue CAGR remains firmly in double digits, underscoring persistent business expansion. Profitability metrics are particularly robust, with a P/E ratio of 6.53 signaling attractive value, especially compared to both its sector peers and the broader Indian market. Strategically, REC is at the heart of India’s drive to modernize its power grid and expand renewable capacity. Recent corporate developments reflect focused execution:

• Transition towards green finance: REC is shifting more capital towards renewable energy and infrastructure, supporting national priorities and unlocking high-growth opportunities.
• Ambitious lending pipeline: REC is targeting ₹2.5 trillion in financing towards clean energy projects by 2030, with strong pipeline visibility.
• Exceptional asset quality: Plans to achieve net-zero NPAs by end-2025 demonstrate a disciplined, risk-managed approach.
• Innovation and leadership: As a dominant lender in India’s electrification, REC’s brand and market position are well-entrenched.
• Dividend yield: A steady 4.06% yield makes the stock attractive for income-focused investors, particularly in low-yield environments.

Volume and liquidity

Trading in REC remains very active, with a consistent average daily volume of around 6 million shares. This high liquidity not only facilitates easy entry and exit for institutional and retail investors but also supports more dynamic valuation adjustments in response to macro or company-specific catalysts. Moreover, a sizable free float and healthy public participation ensure broad market interest and robust price discovery. High volume, especially during periods of technical consolidation, frequently marks the precursor to a meaningful price move—an opportunity for attentive investors.

Catalysts and positive outlook

Several potent drivers set REC apart as a stock with considerable upside potential in the upcoming years:

• India’s energy transition: REC is pivotal in channeling capital to government-led projects in renewables and grid upgrades, arguably one of India’s most critical growth avenues in the coming decade.
• Strong growth targets: With portfolio ambitions for 15–17% near-term growth and long-term lending focus on solar, wind, and smart-grid technologies, REC is at the forefront of sector transformation.
• Zero-NPA mission: Ambitious management targets to fully eliminate non-performing assets by end-2025 could spur a valuation re-rating and investor interest.
• ESG momentum: Increased focus on clean energy and responsible lending practices positions REC strongly with sustainability-focused investors, both domestic and global.
• Government support: As a central public sector entity, REC is likely to benefit from supportive regulatory environments and policy drives favoring infrastructure and energy.

Momentum around the “Green India” initiative, coupled with growing institutional demand for stable, income-generating stocks, only strengthens the company’s outlook.

Investment strategies

For short-term investors, the proximity to technical support zones (₹383.3) may offer a base for opportunistic entry, particularly if technical momentum improves or a catalyst emerges—such as positive sector news or regulatory announcements. Medium-term investors could benefit from accumulating shares ahead of key results or government budgets, as REC’s strong fundamentals and earnings visibility provide multiple triggers for upward price action. Long-term investors have a compelling narrative to follow: REC’s transformation into a leader in green finance, paired with its impressive earnings growth, attractive entry valuation, and robust yield, fit neatly into both growth and income strategies. A disciplined approach, incorporating technical entry points and staged buying, can be particularly effective in capturing value while managing volatility; current price levels, combined with sector momentum, seem to represent an excellent window for portfolio building.

Is it the right time to buy REC?

REC stands at the intersection of financial stability, income generation, and participation in one of India's most transformative social and economic themes—energy and infrastructure modernization. With record earnings, an enviable dividend yield, disciplined asset quality management, and a clear pivot towards the green energy space, REC’s fundamentals justify renewed investor interest at current levels. High liquidity, reasonable valuation, and visible policy tailwinds add further conviction to the case. While every equity investment carries inherent risk, the backdrop for REC in 2025 appears particularly favorable—especially for investors seeking exposure to India’s infrastructure revolution and the transition to sustainable energy. For those searching for a stock that blends value, momentum, and long-term vision, REC seems to represent an excellent opportunity to participate in India’s next growth cycle.

How to buy REC stock in India

Buying REC stock online is both simple and secure, provided you use a regulated broker in India. You can choose between two main methods: spot buying, which gives you direct ownership of REC shares, and trading CFDs (Contracts for Difference), letting you trade the price movement with leverage but without actually owning the shares. Each method suits different investor profiles, and a comprehensive broker comparison is available further down the page to help you determine the best choice for your needs.

Spot buying

A cash purchase means you buy REC shares outright and become their legal owner, with eligibility for dividends and voting rights. Indian brokers typically charge a fixed commission per order—often between ₹15 and ₹25, or around $5 with mainstream platforms.

Gain scenario

For example, if the REC share price is $4.70 (approx. ₹393.65), you can buy around 212 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on REC share price movements without actually owning the physical shares. Instead, you enter a contract with your broker, paying or earning the difference in price at closing. There are typically two main fees: the spread (difference between buy and sell prices) and overnight financing charges on leveraged positions.

Gain scenario

For example, you open a CFD position on REC shares with 5x leverage, using $1,000 collateral.
This gives you a market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, always compare brokers' fees, platform quality, and available order types. The right method—spot buying versus CFDs—will depend on your financial objectives, risk appetite, and investment horizon. For more details on broker features and offers, find our comprehensive broker comparison further down this page.

Our 7 tips for buying REC stock

The latest news about REC

REC posts record annual net profit for FY25, up 12% year-on-year. REC’s FY25 annual results reveal a net profit of ₹15,713 crores, marking its highest annual net earnings to date and a robust 12% increase versus FY24, reflecting both strong operational efficiency and prudent financial management in a challenging macro environment.

REC achieves notable growth in renewable energy financing and sets ambitious lending targets to 2030. The company is intensifying its strategic transition towards green energy, targeting ₹2.5 trillion in financing for renewable energy projects by 2030. This positions REC as a leader in supporting India’s clean energy goals, boosting market confidence in its growth trajectory.

Moody’s maintains positive credit outlook for REC on back of improving asset quality and capital base. In the latest review, Moody’s highlighted REC’s improving asset quality, a secured lending book, and fortified capital buffers, reaffirming favorable funding conditions and stability for the company in the Indian financial sector.

Market reacts favorably to REC’s robust Q4 FY25 results with high institutional interest. Following the announcement of March quarter earnings—net profit of ₹4,304 crores and continued loan book growth—there has been visible accumulation by domestic institutional investors, underlining REC’s appeal as a core holding in India’s infrastructure and finance space.

Government initiatives and policy support for renewable energy enhance REC’s growth prospects. Recent central government announcements prioritize accelerated rooftop solar adoption and increased public investment in power grid modernization, adding further momentum to REC’s targeted expansion in renewable infrastructure finance, and reinforcing future demand for its strategic lending programs.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.