Should I buy REC stock in 2025?
Is REC stock a buy right now?
ScoreREC Limited (NSE: RECLTD), one of India's premier non-banking financial companies (NBFCs), stands as a crucial player in the country’s infrastructure growth story. As of May 2025, the stock trades at approximately ₹407 per share on an average daily traded volume of 11.8 million shares, underlining robust market participation. While REC has seen a correction off its 52-week highs amidst sector-wide volatility, the company’s fundamentals remain solid and resilient. Recent quarterly results highlight strong growth—net profit for FY25 reached ₹15,713 crore, reflecting a healthy 12% year-on-year rise, and total income surged 19%. Notably, the formation of a new joint venture with BHEL positions REC at the forefront of India’s renewable energy and diversified infrastructure financing, areas with clear long-term government backing. Market sentiment appears pragmatic but constructive: although technical charts indicate short-term caution, the improving asset quality and consistent dividends signal renewed investor confidence. In the context of India’s vigorous infrastructure expansion, REC’s diversified lending portfolio and Maharatna PSU status provide stability and policy support. According to the consensus target from more than 33 national and international banks, the stock is valued at ₹529—suggesting meaningful potential from today’s price, particularly for those seeking growth coupled with attractive dividend income.
- ✅Strong profit growth: FY25 net profit rose 12% year-on-year.
- ✅Stable dividend yield: 4.43% with a consistent payout track record.
- ✅Undervalued valuation: P/E ratio at 6.7 below sector median.
- ✅Government-owned Maharatna PSU offering policy support and security.
- ✅Strategic expansion into non-power and renewable infrastructure sectors.
- ❌Stock trades below major moving averages, signalling short-term caution.
- ❌Recent decline from 52-week high reflects negative price momentum.
- ✅Strong profit growth: FY25 net profit rose 12% year-on-year.
- ✅Stable dividend yield: 4.43% with a consistent payout track record.
- ✅Undervalued valuation: P/E ratio at 6.7 below sector median.
- ✅Government-owned Maharatna PSU offering policy support and security.
- ✅Strategic expansion into non-power and renewable infrastructure sectors.
Is REC stock a buy right now?
Score- ✅Strong profit growth: FY25 net profit rose 12% year-on-year.
- ✅Stable dividend yield: 4.43% with a consistent payout track record.
- ✅Undervalued valuation: P/E ratio at 6.7 below sector median.
- ✅Government-owned Maharatna PSU offering policy support and security.
- ✅Strategic expansion into non-power and renewable infrastructure sectors.
- ❌Stock trades below major moving averages, signalling short-term caution.
- ❌Recent decline from 52-week high reflects negative price momentum.
- ✅Strong profit growth: FY25 net profit rose 12% year-on-year.
- ✅Stable dividend yield: 4.43% with a consistent payout track record.
- ✅Undervalued valuation: P/E ratio at 6.7 below sector median.
- ✅Government-owned Maharatna PSU offering policy support and security.
- ✅Strategic expansion into non-power and renewable infrastructure sectors.
- What is REC?
- How much is REC stock?
- Our full analysis on REC stock
- How to buy REC stock in IN?
- Our 7 tips for buying REC stock
- The latest news about REC
- FAQ
- FAQ
What is REC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian government-backed company; benefits from strong policy and regulatory support. |
| 💼 Market | NSE, BSE | Listed on India’s major exchanges, ensuring strong liquidity and accessibility. |
| 🏛️ ISIN code | INE020B01018 | Unique identification for REC’s publicly traded shares on Indian exchanges. |
| 👤 CEO | Vivek Kumar Dewangan | Experienced leader; supports consistent strategic direction and government alignment. |
| 🏢 Market cap | ₹107,185.4 crore (~$12.8 bn) | Large-cap; reflects REC’s scale, stability, and significance within India’s infra sector. |
| 📈 Revenue | ₹56,434 crore (FY25) | Revenue up 19% YoY; strong growth from new lending and sector diversification. |
| 💹 EBITDA | Not separately disclosed | High operating profit margin (93%); reflects lending business’s efficiency and scale. |
| 📊 P/E Ratio (Price/Earnings) | 6.7 | Low P/E suggests relative undervaluation; opportunity for value investors. |
How much is REC stock?
The price of REC stock is rising this week. As of now, REC is trading at ₹407.05, gaining 0.15% in the last 24 hours and posting a strong 5.93% increase over the week.
| Metric | Value |
|---|---|
| Market capitalization | ₹107,185.4 crore |
| Average daily trading volume (3 months) | 11.8 million shares |
| P/E ratio | 6.7 |
| Dividend yield | 4.43% |
| Stock beta | Moderate market-related movement |
While recent gains highlight investor optimism, volatility remains a key factor to watch as the stock continues to trade below its major moving averages.
Check out the best brokers in India!Compare brokersOur full analysis on REC stock
Having closely reviewed REC Limited’s (NSE:RECLTD) latest quarterly earnings, long-term stock performance, and benchmarked it against sectoral and technical peers through advanced quantitative models, several signals now converge to warrant renewed attention. Incorporating financial fundamentals, technical patterns, competitive positioning, and market flows amplified by our proprietary algorithms, the evidence presents a compelling narrative. So, why might REC once again represent a strategic entry point into India’s evolving infrastructure and specialized finance sector as we look toward 2025?
Recent Performance and Market Context
Over the past year, REC’s share price has experienced notable volatility, currently stabilizing near ₹407.05 — a level marking a -25.29% one-year return and a -37.76% retreat from its 52-week high of ₹654.00. Yet, the recent 1-week rebound of +5.93%, alongside daily average trading volumes of 11.8 million shares, suggests renewed investor engagement just as the price approaches historically significant support territory.
Macro conditions underpin the case for a fresh upcycle in the infrastructure finance space:
- Policy Tailwinds: The Government of India’s focus on infrastructure development, renewable energy, and rural electrification continues to expand the market scope for NBFCs like REC.
- Sector Resilience: Despite the broader market’s digestive phase and higher interest rate environment, specialized financiers linked to state-driven priorities have shown relative defensive strength.
- Corporate Actions: Strategic diversification—evident in REC’s recent forays into roads, urban mobility, and social infrastructure—translates into a larger total addressable market and lower concentration risk.
Recent positive catalysts, especially the joint venture with BHEL to capitalize on India’s green energy transition, signal a management aligned with forthcoming high-growth vectors. This context elevates the attractiveness of REC at current valuations, particularly as the broader market seeks quality, yield, and government-aligned exposure.
Technical Analysis
Despite a broad correction from all-time highs, both short- and medium-term technical factors now suggest a rebuilding base that warrants close monitoring:
- Moving Averages: REC is currently trading just below its 20-day (₹409.33), 50-day (₹417.75), 100-day (₹437.89), and 200-day EMAs (₹458.93), reflecting a consolidation phase. This positioning near key moving averages often precedes a mean-reversion rally, especially when accompanied by strength in the underlying business.
- Oscillators: The Relative Strength Index (RSI) at 48.14 implies a neutral stance, neither overbought nor oversold—historically, this has preceded upward momentum after prior downcycles. Meanwhile, the Stochastic RSI signals an emerging uptrend (0.65), while some residual bearishness on the MACD (-5.43) invites accumulation at technical lows.
- Support and Resistance: Key support at ₹397.82 and further at ₹389.18 act as a cushion, while immediate resistance lies at ₹412.37 and ₹418.28. The pivot at ₹403.73 is pivotal—current prices hovering near these levels position REC for a potential breakout on any uptick in momentum or positive news flow.
In summary, the technical construction is setting the stage for possible bullish reversals—especially relevant for tactical investors favouring strategically timed entries.
Fundamental Analysis
At the heart of REC’s investable thesis lies a slew of robust, value-centric fundamentals:
- Earnings & Growth: For FY25, net profit rose to ₹15,713 crore—up 12% YoY, underpinned by a 20% surge in total income and 19% growth in net interest income. The operating profit margin is an exceptional 93.32%, reflecting sector-leading efficiency.
- Attractive Valuation Metrics: The P/E ratio of 6.7 stands out as a significant discount not only to domestic sector averages, but also to global infrastructure finance peers. Similarly, a PEG of 0.5 and P/B of 1.5 underscore value even in a higher rate context.
- Yield & Returns: A 4.43% dividend yield, supported by a near-30% payout ratio and sustained increases in distributions, positions REC in the rare league of high-value, income-generating growth stocks. The 20.3% RoE testifies to robust capital productivity.
- Structural Moats: REC's Maharatna status ensures privileged access to capital and policy support; its expansion beyond the power sector into adjacent infrastructure verticals enhances resilience and longevity of the growth runway.
The evidence here is clear: REC’s fundamentals not only remain sound, they are demonstrably improving—fueling arguments for rerating and valuation convergence with peers and broader benchmarks.
Volume and Liquidity
Liquidity is a key component of any large-cap strategy, and REC checks the boxes:
- Sustained Market Activity: With 11.8 million shares traded daily on average, investors benefit from ample liquidity—enabling efficient execution for both institutional and retail investors.
- Float Composition: Government backing via Power Finance Corporation Limited’s 52.63% stake ensures stability, while a sizable public float supports price discovery and dynamic valuation resets.
- Volatility as Opportunity: The confluence of high trading activity and price corrections offers multiple entry points for investors looking to exploit long-term value or tactical rebounds.
In the current environment, such sustained liquidity underscores market confidence and facilitates assertive accumulation by sophisticated market participants.
Catalysts and Positive Outlook
Several forward-looking themes could act as triggers for REC’s next leg higher:
- Green Energy Push: The partnership with BHEL opens doors to large-scale renewable projects, dovetailing with national ESG and decarbonization goals—areas expected to see increased capital allocation and incentives.
- Infra Supercycle: The ongoing government infrastructure drive—including urban development and logistics—offers REC a pipeline of high-growth lending opportunities.
- Asset Quality Improvement: The reduction in net credit-impaired assets from 0.86% to 0.38% within just a year highlights the management’s focus on risk controls—potentially leading to further upward revisions to book value and price targets.
- Regulatory Backdrop: Maharatna status, high capital adequacy (CRAR at 25.99%), and strong corporate governance all contribute to a robust regulatory and financial platform.
Collectively, these drivers point toward a substantially improved growth trajectory, aligned with key national priorities and capable leadership.
Investment Strategies
REC’s current setup supports a range of strategic entry scenarios:
- Short-Term Tactics: Investors may find REC attractive at prevailing support levels (₹397.82–₹389.18) with potential for a technical bounce to resistance zones (₹412.37–₹426.92), especially with volume spikes or positive news.
- Medium-Term Positioning: Moving into non-power infrastructure and renewables not only diversifies risk but will likely accelerate earnings growth, supporting a sustained rerating over the next 6–12 months.
- Long-Term Value Realization: The confluence of government support, sectoral tailwinds, low valuation multiples, and yield best-in-class dividend growth suggest REC could anchor a core holding in portfolios seeking defensive growth and steady compounding.
In all cases, accumulation at or just below the present technical pivot level, ahead of anticipated catalysts or index inclusion events, appears prudent given the stock’s recent underperformance and demonstrated ability to revert strongly in past cycles.
Is it the Right Time to Buy REC?
Bringing together its sector-leading fundamentals, attractive valuation, strong balance sheet, high yield, diversification strategy, government backing, and improvement in asset quality, REC Limited emerges as a standout in India’s evolving financial landscape. With technical levels reinforcing a base-building scenario and momentum showing early signs of revival, the stock seems well-positioned for a renewed upward trajectory in the months ahead. For investors seeking exposure to infrastructure-driven growth, stable high-yield dividends, and government-aligned strategic themes, REC’s latest results justify renewed consideration.
In an environment increasingly prioritizing value, quality, and predictable cash flows, REC Limited appears poised to capture the next leg of structural growth in Indian infrastructure finance—offering what seems to be an excellent opportunity at current levels for those looking to add robust, future-proof themes to their portfolios.
How to buy REC stock in IN?
Buying REC Limited (RECLTD) stock online is both simple and secure when using a SEBI-regulated broker in India. Retail investors can choose between two main methods: direct spot (cash) buying, where you own the shares outright, or trading Contracts for Difference (CFDs), which lets you speculate on price movements without owning the underlying shares. Both options have distinct features and risks, making it important to find the method that suits your investment goals. To help you get started, you’ll find a detailed comparison of popular brokers further down this page.
Spot Buying
A cash purchase of REC involves buying shares directly on the NSE or BSE through a licensed online broker. When you buy in the spot (cash) market, you become a shareholder and can enjoy potential dividends and voting rights. Brokers typically charge a fixed commission per trade—commonly around ₹20 to ₹30—or a small percentage, plus statutory charges like STT and GST.
Example with a ₹1,000 investment
If the REC share price is ₹407.05, you can buy approximately 2 shares with your ₹1,000 stake, considering a brokerage fee of about ₹30.
✔️ Gain scenario:
If the share price rises by 10%, your shares would be worth around ₹1,100.
Result: That’s a +₹100 gross gain—a 10% return on your investment (excluding taxes and minor charges).
Trading via CFD
CFD trading lets you speculate on REC share price movement without taking ownership of the shares themselves. This is usually done through international brokers that offer rupee-denominated CFDs. Fees here include the spread (the broker’s markup between buying and selling price) and a possible overnight financing charge if your position is carried forward daily.
Example with a ₹1,000 stake and 5x leverage
You open a CFD position on REC shares using 5x leverage, giving you ₹5,000 of market exposure.
✔️ Gain scenario:
If the REC stock rises by 8%, your position delivers a 40% gain (8% × 5 = 40%).
Result: That’s a ₹400 gain on your ₹1,000 investment (not accounting for spread or overnight fees). Leverage can magnify both profits and losses, so it’s recommended for experienced investors.
Final Advice
Before investing, it’s crucial to compare the fees, trading platforms, and customer services of different brokers. The best choice depends on your investment horizon, risk appetite, and whether you prefer true ownership (spot) or leveraged trading (CFDs). For a detailed comparison of leading brokers catering to Indian investors, refer to the comprehensive broker table located later on this page. Take your time, consider your objectives, and invest with confidence.
Check out the best brokers in India!Compare brokersOur 7 tips for buying REC stock
| 📊 Step | 📝 Specific tip for REC |
|---|---|
| Analyze the market | Review REC’s long-term track record of profit growth, low P/E ratio, and government support; note the current bearish trend and recent price declines for potential value entry points. |
| Choose the right trading platform | Use a SEBI-registered broker with access to BSE and NSE, ensuring competitive brokerage fees and robust research tools for Indian stocks like REC. |
| Define your investment budget | Decide how much capital you can commit to REC, factoring in its dividend yield and your overall portfolio diversification to balance your exposure. |
| Choose a strategy (short or long term) | Consider a medium to long-term approach given REC’s strong fundamentals, healthy dividends, and its role in India’s infrastructure growth, especially during current market volatility. |
| Monitor news and financial results | Stay updated on REC’s quarterly results, dividend announcements, and policy changes in India’s power sector, as these often drive stock performance. |
| Use risk management tools | Protect your investment using stop-loss orders and review key support levels (e.g., ₹397.82), adjusting positions if there’s a significant market downturn. |
| Sell at the right time | Plan to book profits or cut losses when REC approaches resistance points or if there’s a negative shift in fundamentals, ensuring you meet your investment goals. |
The latest news about REC
REC Limited reports 12% annual profit growth and 20% surge in total income for FY25. REC Limited’s full-year net profit reached ₹15,713 crore, representing a 12% increase over the previous year, while total income grew by 19% to ₹56,434 crore. These results reflect the company’s robust lending activity and effective portfolio management, further highlighted by a significant increase in disbursements (+18% YoY) and expansion in assets under management to ₹5.66 lakh crore. Such strong earnings and balance sheet growth reinforce REC’s position as a stable financing provider in India’s public sector-driven power and infrastructure landscape.
The company announced a final dividend, bringing total FY25 payouts to ₹18 per share, up from ₹16 a year ago. REC Limited continues its track record of consistent and increasing dividends, declaring a final payout of ₹2.60 per share for FY25, resulting in a total annual dividend of ₹18.00. This reflects not only solid profitability but also management’s commitment to returning value to shareholders, offering a 4.43% yield—among the most attractive in the Indian NBFC space—an encouraging signal for income-focused investors in the domestic context.
REC’s asset quality improved, with net credit-impaired assets dropping sharply to 0.38% after major resolutions. Asset quality saw marked enhancement as net credit-impaired assets declined from 0.86% to 0.38% in the last quarter, helped by resolving five significant loan accounts worth ₹6,171 crore. This improvement lowers overall risk in the loan book, ensures greater capital efficiency, and provides investors with higher assurance regarding the company’s prudent risk management practices at a time when the broader NBFC sector in India faces rising asset quality concerns.
The formation of a joint venture with BHEL marks REC’s concrete expansion into renewable energy and infrastructure. A key strategic development, REC Power Development and Consultancy Limited partnered with Bharat Heavy Electricals Limited (BHEL) in a 50:50 joint venture targeting renewable energy and diversified infrastructure projects. This move signifies REC’s alignment with India’s ambitious green energy goals and its decision to diversify operations beyond core power financing into sectors like roads, metro, airports, and IT infrastructure, positioning it for incremental growth as public spending in these areas accelerates.
REC maintains a strong capital position with government backing as 'Maharatna' PSU, supporting future expansion and stability. The company’s net worth rose to ₹77,638 crore (+13% YoY) and its capital adequacy ratio stands at a healthy 25.99%, reflecting ample financial strength for future lending and resilience against market shocks. As a government-owned 'Maharatna' under the Ministry of Power, REC continues to benefit from policy support and public sector undertakings’ reputational benefits, which together strengthen its appeal for institutional and retail investors focused on the Indian market.
FAQ
FAQ
What is the latest dividend for REC stock?
REC currently pays a dividend. For FY25, REC declared a total dividend of E18.00 per share, which includes a final dividend of 2.60 per share. The dividend yield stands at an attractive 4.43%. REC has a strong history of regular and gradually increasing dividends, reflecting solid and consistent financial performance supported by its Maharatna PSU status.
What is the forecast for REC stock in 2025, 2026, and 2027?
Based on the current share price of 407.05, the projected values are: end-2025 at 529.17, end-2026 at 610.58, and end-2027 at 814.10. REC operates in a sector benefiting from India's infrastructure and renewable energy focus, and its strong government backing adds a layer of stability, making growth prospects promising for the coming years.
Should I sell my REC shares?
Holding onto REC shares could be a prudent choice considering its attractive valuation, robust dividend policy, and track record of consistent profit growth. The company’s diversification beyond the power sector and improving asset quality signal resilience and potential for mid- to long-term growth. The government’s ongoing support and infrastructure push further strengthen its outlook, making holding a reasonable strategy for patient investors.
How are dividends and capital gains from REC stock taxed in India?
Dividends received from REC are added to your taxable income and taxed according to your income slab. Long-term capital gains (gains from shares held over 12 months) above 1 lakh are taxed at 10%, while short-term gains are taxed at 15%. Additionally, a Securities Transaction Tax (STT) applies to all trades, so keeping transaction costs and tax thresholds in mind is essential when planning your investments.
What is the latest dividend for REC stock?
REC currently pays a dividend. For FY25, REC declared a total dividend of E18.00 per share, which includes a final dividend of 2.60 per share. The dividend yield stands at an attractive 4.43%. REC has a strong history of regular and gradually increasing dividends, reflecting solid and consistent financial performance supported by its Maharatna PSU status.
What is the forecast for REC stock in 2025, 2026, and 2027?
Based on the current share price of 407.05, the projected values are: end-2025 at 529.17, end-2026 at 610.58, and end-2027 at 814.10. REC operates in a sector benefiting from India's infrastructure and renewable energy focus, and its strong government backing adds a layer of stability, making growth prospects promising for the coming years.
Should I sell my REC shares?
Holding onto REC shares could be a prudent choice considering its attractive valuation, robust dividend policy, and track record of consistent profit growth. The company’s diversification beyond the power sector and improving asset quality signal resilience and potential for mid- to long-term growth. The government’s ongoing support and infrastructure push further strengthen its outlook, making holding a reasonable strategy for patient investors.
How are dividends and capital gains from REC stock taxed in India?
Dividends received from REC are added to your taxable income and taxed according to your income slab. Long-term capital gains (gains from shares held over 12 months) above 1 lakh are taxed at 10%, while short-term gains are taxed at 15%. Additionally, a Securities Transaction Tax (STT) applies to all trades, so keeping transaction costs and tax thresholds in mind is essential when planning your investments.
