The shares of the multibagger government owned NBFC was up 6 percent after it signed a memorandum of understanding (MOU) with a large cap bank.
At the day’s closing the shares of REC Limited were trading green at Rs 283.60 up by 6 percent from its previous close price and the market capitalisation of the company is 74,875 Cr.
As per the reports, REC Limited has signed a memorandum of understanding (MOU) with Punjab national bank to jointly explore the possibility to fund power sector and infrastructure & logistics sector projects under the consortium arrangement. Both the company’s will partner to co-finance loans amounting to Rs 55,000 Cr over the next three years.
REC Limited has delivered a multibagger returns of 148 percent in six months and 196 percent in 1 year. A shareholders investment of 1 lakh in the company would be worth 2.96 lakh in 1 year.
The company’s revenue has increased by only 0.53 percent from 39,269.05 Cr in FY22 to 39,478.26 Cr in FY23 accompanied by increasing profits of 10,035.69 Cr to 11,166.98 Cr.
The company has reported a return on equity (ROE) of 20.62 percent and a return on capital employed (ROCE) of 9.14 percent, though the company is able to generate good returns on its equity, it is only able to generate decent returns on its capital employed.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 52.63 percent stake, the Domestics Institutional Investors hold 12.06 percent and the Foreign Institutional Investors (FII) hold 21.90 percent.
REC Limited is a ‘Maharatna’ company under the administrative control of the ministry of power,GOI and is registered with RBI as a non-banking finance company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC provides long term loans and other financing products to State, Centre and Private Companies for creation of infrastructure assets in the country.
Written by: Bharath K.S
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