REC Stock Price Analysis and Quick Research Report. Is REC an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse REC.
Key Financials -
- Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of REC is Rs 15713.21 Cr. and the compounded growth of profit in the past 3 years is 16.0800942881691%. The PAT margin of REC is 28.1039%.
- EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In REC , the EPS grew by 12.0834% YOY.
Financial Ratios -
- Return on Equity (ROE): REC has a healthy ROE track record. The ROE of REC is at 21.628% for the latest year.
- P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of REC is worth at the current levels at Rs 369. REC is trading at a current P/E ratio of 7.1959 and the average historical P/E for the last 5 years was 4.78622.
- P/B ratio can be one of the best metrics to value such companies. Currently, REC is trading at a P/B of 1.19177308382105. The average historical P/B for the last 5 years was 0.96508. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.
One can find all the Financial Ratios of REC in Ticker for free. Also, one can get the intrinsic value of REC by using Valuation Calculators, which are available with a Finology ONE subscription.
REC FAQs
Q1. What is REC share price today?
Ans: The current share price of REC is Rs 369.
Q2. What is the market capitalisation of REC?
Ans: REC has a market capitalisation of Rs 97165.9656 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of REC?
Ans: The PE ratio of REC is 5.81073994812852 and the P/B ratio of REC is 1.19177308382105, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of REC share?
Ans: The 52-week high share price of REC is Rs 606, and the 52-week low share price of REC is Rs 348.6.
Q5. Does REC pay dividends?
Ans: Currently, REC pays dividends. Dividend yield of REC is around 4.8814%.
Q6. What are the face value and book value of REC shares?
Ans: The face value of REC shares is Rs 10, while the book value per share of REC is around Rs 309.6227. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What are the ROE and ROCE of REC?
Ans: The ROE of REC is 21.628% and ROCE of REC is 9.9238%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q8. Is REC a good buy for the long term?
Ans: The REC long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q9. Is REC undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the REC appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q10. How to check REC’s financials?
Ans: You can review REC’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.