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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of REC Ltd

About the Company - REC Ltd

RBL Bank Ltd. is a Public Limited Listed company incorporated on 14/06/1943 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65191PN1943PLC007308 and registration number is 007308. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 8175.79 Cr. and Equity Capital is Rs. 599.51 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private Sector1st Lane, Shahupuri, Kolhapur Maharashtra 416001investorgrievances@rblbank.com
http://www.rblbank.com
Management
NamePosition Held
Mr. Prakash ChandraNon Exe.Chairman&Ind.Director
Mr. R SubramaniakumarManaging Director & CEO
Mr. Rajeev AhujaExecutive Director
Ms. Veena MankarNon Executive Director
Mr. Gopal JainNon Independent Director
Mr. Vimal BhandariNon Independent Director
Ms. Ranjana AgarwalIndependent Director
Mr. Chandan SinhaIndependent Director
Mr. Manjeev Singh PuriIndependent Director
Dr. Sivakumar GopalanIndependent Director
Dr. Somnath GhoshIndependent Director
Mr. Ishan RainaIndependent Director
Mr. Yogesh DayalNominee Director

RBL Bank Ltd. Share Price Update

Share PriceValue
Today₹243.95
Previous Day₹259.90

Basic Stock Data of REC Ltd

Market Cap 16,044 Cr.
Current Price 266
High / Low301/132
Stock P/E14.8
Book Value 226
Dividend Yield0.56 %
ROCE5.46 %
ROE6.74 %
Face Value 10.0

Data Source: screener.in

Competitors of REC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bandhan Bank Ltd 32,871 Cr. 204272/18211.0 1220.73 %6.67 %11.9 % 10.0
Jammu & Kashmir Bank Ltd 15,411 Cr. 140152/44.69.62 95.90.34 %4.92 %13.1 % 1.00
Yes Bank Ltd 76,165 Cr. 26.532.8/14.174.4 13.80.00 %4.94 %1.99 % 2.00
Ujjivan Small Finance Bank Ltd 10,626 Cr. 54.363.0/22.88.45 20.52.26 %10.6 %33.3 % 10.0
Karnataka Bank Ltd 8,421 Cr. 243287/1246.13 2632.05 %5.86 %15.4 % 10.0
Industry Average28.2 Cr133.5621.92103.041.08%6.6%15.14%6.6

REC Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Revenue2,0972,0081,9652,0261,9752,0442,1312,0892,2862,3692,4962,8563,008
Interest1,1651,0991,0591,0561,0591,0341,0001,0621,1111,2201,2851,4341,533
Expenses1,1561,2891,3452,2411,4691,3861,3861,3651,4871,4921,5261,7262,089
Financing Profit-224-381-439-1,272-553-376-255-337-312-344-315-304-614
Financing Margin %-11%-19%-22%-63%-28%-18%-12%-16%-14%-15%-13%-11%-20%
Other Income418576549653593583511614583618674685704
Depreciation0000000000000
Profit before tax194195110-6183920725727627127435938191
Tax %26%25%32%26%22%25%23%27%26%24%25%24%-224%
Net Profit14414775-45931156198201202209271288294
EPS in Rs2.832.461.26-7.680.512.603.303.363.363.494.524.804.89
Gross NPA %3.34%1.84%4.34%4.99%5.40%4.84%4.40%4.08%3.80%3.61%3.37%3.22%3.12%
Net NPA %1.38%0.71%2.12%2.01%2.14%1.85%1.34%1.16%1.26%1.18%1.10%1.00%0.78%

REC Ltd Quarterly Chart

REC Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue4658791,3521,9532,7443,7134,5086,3018,5148,3298,1769,13010,729
Interest2786221,0101,3971,9252,4922,7413,7614,8854,5414,1494,6785,472
Expenses1512344496278331,2341,7812,5614,6494,8246,3185,5646,833
Financing Profit3624-108-70-14-12-15-21-1,019-1,037-2,292-1,113-1,577
Financing Margin %8%3%-8%-4%-1%-0%-0%-0%-12%-12%-28%-12%-15%
Other Income671262614034917551,0681,4421,9101,8842,3412,4892,682
Depreciation81321334862871221381581641960
Profit before tax951371333004286819671,299753689-1151,1801,105
Tax %32%32%30%31%32%35%34%33%33%26%35%25%
Net Profit659393207292446635867506508-758831,062
EPS in Rs3.033.673.417.069.0111.8915.1320.329.948.49-1.2514.7217.70
Dividend Payout %10%16%26%17%17%15%14%13%15%0%0%0%

REC Ltd Profit & Loss Yearly Chart

REC Ltd Growth

Compounded Sales Growth
10 Years:26%
5 Years:15%
3 Years:2%
TTM:28%
Compounded Profit Growth
10 Years:25%
5 Years:7%
3 Years:20%
TTM:34%
Stock Price CAGR
10 Years:%
5 Years:-14%
3 Years:3%
1 Year:68%
Return on Equity
10 Years:6%
5 Years:5%
3 Years:4%
Last Year:7%

REC Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital215253272293325375420427509598600600601
Reserves9271,3531,7421,9362,6643,9606,2647,12110,07412,06512,01912,977
Borrowings5,93811,07815,49424,06234,88542,56853,16470,22674,81984,34790,10098,218
Other Liabilities1272796898121,2871,7712,0032,5853,5763,6413,4914,084
Total Liabilities7,20712,96218,19727,10439,16148,67561,85180,35988,978100,651106,209115,879
Fixed Assets4583110153158224303363408442467529
CWIP121023101935314062248245
Investments2,2655,5166,4779,79214,43613,48215,44816,84018,15023,23022,27428,875
Other Assets4,8857,35311,58717,14824,54834,93446,06963,11670,35876,95483,38686,429
Total Assets7,20712,96218,19727,10439,16148,67561,85180,35988,978100,651106,209115,879

REC Ltd Reserves and Borrowings Chart

REC Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -845-1,772-922-2,261-4,3843,434-2,528-31-5,0847,5976,449-11,044
Cash from Investing Activity -21-47-59-58-60-142-162-190-206-157-246-223
Cash from Financing Activity 1,1861,9201,4853,0764,040-1,6562,9952,5677,698-4,207-1142,239
Net Cash Flow319101503757-4051,6353052,3452,4083,2336,090-9,028

REC Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
ROE %6%7%5%10%11%12%12%12%6%4%-1%7%

REC Ltd Financial Efficiency Indicators Chart

REC Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
FIIs34.25%34.61%31.59%31.31%30.59%28.50%29.59%28.92%24.66%28.27%30.00%28.27%
DIIs22.74%20.72%22.34%19.68%19.05%11.64%13.83%19.85%19.77%17.91%19.12%19.34%
Government0.36%0.36%0.36%0.36%0.36%0.36%0.36%0.38%0.42%0.42%0.41%0.42%
Public42.64%44.30%45.70%48.64%50.00%59.50%56.22%50.84%55.14%53.38%50.45%51.98%
No. of Shareholders3,22,4723,82,3844,08,3514,73,4954,67,4155,37,1784,94,2914,16,5924,04,4383,79,5363,51,1193,44,856

REC Ltd Shareholding Pattern Chart

No. of REC Ltd Shareholders

REC Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan50749720.23119.06
SBI Arbitrage Opportunities Fund44975000.44105.51
SBI Banking & Financial Services Fund43500002.29102.05
Kotak Equity Arbitrage Fund - Regular Plan35150000.2682.46
Tata Arbitrage Fund31000000.9172.73
Invesco India Arbitrage Fund27775000.6465.16
Aditya Birla Sun Life Arbitrage Fund25675000.9460.23
Aditya Birla Sun Life Banking And Financial Services Fund21296761.7249.96
Tata Flexi Cap Fund19000001.7844.57
Aditya Birla Sun Life Small Cap Fund18710020.8743.89

REC Ltd ROCE Trend

REC Ltd EPS Trend

REC Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Face Value10.0010.0010.0010.0010.00
Basic EPS (Rs.)15.34-2.779.7511.0420.25
Diluted EPS (Rs.)15.27-2.779.6810.9819.83
Cash EPS (Rs.)18.890.2311.6912.7023.13
Book Value[Excl.RevalReserv]/Share (Rs.)225.58209.00211.79207.67176.56
Book Value[Incl.RevalReserv]/Share (Rs.)225.59209.01211.80207.69176.58
Operating Revenue / Share (Rs.)159.27140.86143.16172.57147.69
Net Profit / Share (Rs.)15.34-2.778.859.8320.19
Net Profit After MI / Share (Rs.)15.34-2.778.859.8320.10
Net Profit Margin (%)9.62-1.966.185.6913.66
Net Profit After MI And SOA Nargin (%)9.62-1.966.185.6913.61
Operating Profit Margin (%)-16.62-29.81-17.74-16.15-9.19
Return On Assets (%)0.79-0.150.520.561.06
Return On Equity / Networth (%)6.79-1.324.184.7311.38
Net Interest Margin (X)4.204.044.114.373.16
Cost To Income (%)53.5663.1153.3049.6540.30
Interest Income / Total Assets (%)8.247.958.509.867.83
Non-Interest Income / Total Assets (%)2.162.212.032.151.79
Operating Profit / Total Assets (%)-1.37-2.37-1.50-1.59-0.72
Operating Expenses / Total Assets (%)4.433.763.053.442.54
Interest Expenses / Total Assets (%)4.043.904.395.484.67
Enterprise Value (Rs.Cr.)100425.3384792.7189984.9575303.7594423.52
EV Per Net Sales (X)10.5210.0410.518.5814.98
Price To Book Value (X)0.620.620.970.653.86
Price To Sales (X)0.880.921.450.784.61
Retention Ratios (%)100.00100.00100.0061.6589.65
Earnings Yield (X)0.10-0.020.040.070.02

REC Ltd Profitability Ratios (%)

REC Ltd Liquidity Ratios

REC Ltd Liquidity Ratios (%)

REC Ltd Interest Coverage Ratios (X)

REC Ltd Valuation Ratios

Fair Value / Intrinsic Value of REC Ltd

Fair Value: ₹226.70

The stock is overvalued by 14.77% compared to the current price ₹266

*Investments are subject to market risks

Strength and Weakness of REC Ltd

Unable to fetch valid data for stock valuation.

Should I Buy REC Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in REC Ltd:
    1. Net Profit Margin: 9.62%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: N/A% (Industry Average ROCE: 6.94%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): N/A
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: N/A
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 14.7 (Industry average Stock P/E: 13.47)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in REC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE