₹319.0
+1.72% today
· 30d -12.19%
as of 2026-09-04
Price · Daily Candles
“REC Ltd: DIIs nudge holdings up as FIIs trim positions amidst price retreat.”
REC Ltd, a financial services company, trades at a TTM P/E of 5.46x, significantly below the sector's higher valuations. The company's annual revenue grew 5.71% and net profit by 2.67% year-over-year as of FY26, yet Q4FY26 saw a revenue decline of 5.02% and a net profit drop of 21.69% YoY. The stock has seen a 14.14% price decline over the last year, reaching 21.17% off its 52-week high.
BULL CASE
+REC Ltd exhibits strong profitability with an OPM of 91.56% in Q4FY26 and a profit margin of 70.55%.
+The stock has an attractive TTM P/E of 5.46x and a P/B of 1.06, making it notably cheaper than peers like BAJFINANCE (P/E 30.41x, ROCE 5.38%).
+The trailing twelve months dividend yield is substantial at 6.78%.
+Annual revenue for FY26 increased by 5.71% YoY to ₹59,584 Cr, with net profit growing by 2.67% to ₹16,308 Cr.
+ML predictions show strong ranks for sales growth (0.876 recent 2yr, 0.85 4yr rolling, 0.756 7yr stable) and EBIT growth (0.905 stable 7yr).
BEAR CASE
−Q4FY26 saw a decline in financials, with revenue down 5.02% YoY to ₹14,564 Cr and net profit falling 21.69% YoY to ₹3,375 Cr.
−The stock price has fallen by 14.14% over the last year and is currently trading 21.17% below its 52-week high of ₹428.7.
−FIIs decreased their stake by 0.67% QoQ in Q4FY26.
−The ML model predicts a weak rank for FCF growth (0.23 recent 2yr, 0.093 rolling 4yr, 0.187 stable 7yr) due to projected severe FCF compression.
−Technical indicators show a bearish MACD with a value of -1.656 and neutral RSI at 42.27, suggesting weak momentum.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹14435 Cr
-2.05% YoY
NET PROFIT
₹4193 Cr
-6.11% YoY
OPM
96.91%
-1.63pp YoY
EPS
₹15.92
PE 5.46
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-5.9%, h2=-5.1%, h3=-5.1% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
REC Ltd's TTM P/E of 5.46x is significantly lower than sector leaders like BAJFINANCE (30.41x) and SHRIRAMFIN (22.35x), placing it among the cheaper options in the credit services sector, although its ROCE figures are not directly comparable to all peers.
PEERPEROCE %
RECLTD5.46—
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ML Forward Growth Predictions 🔒
61
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
NEUTRAL
40
Valuation
CHEAP
90
Growth
STEADY
58
Profitability
HIGH
100
Technicals
WEAK
30
Risk
MODERATE
50
Key Stats
TTM PE
5.46
P/B
1.06
52W HIGH
₹390.5
OFF HIGH
-18.31%
DIV YIELD
6.78%
MKT CAP
₹83913 Cr
◉ Active Signals
MACDBearish-0.6678
RSI(14)Bearish34.1
Near 52W LowBearish4.92
Street Consensus
13 analysts₹440.77
mean target
Low ₹380.0Now ₹319.0High ₹500.0
⧉ Strategy Fit 🔒