Shares of a leading Infrastructure Finance Company surged 3.4 percent on BSE to Rs. 563.25 on Wednesday, after signing MoUs worth Rs. 1.12 lakh crores with RE developers, and announcing that the company’s loan book is expected to reach Rs. 10 lakh crores by 2030.
With a market capitalisation of Rs. 1.43 lakh crores, at 03:00 p.m., the shares of REC Limited were trading in the green at Rs. 545.55, up by nearly 0.2 percent, as against its previous closing price of Rs. 544.65.
What’s the News:
Rural Electrification Corporation (REC) has participated in the “4th Global Renewable Energy Investors Meet & Expo (RE-INVEST 2024),” held from September 16 to 18, 2024, in Gujarat.
RE-Invest is a global event that brings together government officials, industry leaders, investors, researchers, and policymakers.
According to the latest regulatory filings, REC has made a ‘non-binding financial commitment’ to increase its Renewables loan book to over Rs. 3 lakh crore by 2030.
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This move is expected to raise the share of Renewables from the current 8 percent to 30 percent, as REC’s total loan book is projected to reach Rs. 10 lakh crore by 2030.
REC aims to be a key player in India’s expansion of installed non-fossil-based generation capacity, targeting a growth from 200 GW to 500 GW by 2030.
At the RE-INVEST 2024, REC signed non-binding Memorandum of Understandings (MoUs) with renewable energy (RE) developers, totalling ~Rs. 1.12 lakh crore, set to be implemented over five years.
These MoUs cover a range of projects, including solar and wind hybrid projects, floating solar plants, ultra mega RE parks, hydroelectric power projects, battery energy storage systems (BESS), pumped storage, hydropower, solar cell & module manufacturing, and other innovative technologies.
Discussions are also in progress regarding the financing of Green Energy Corridors, wind turbine manufacturing, and the EV ecosystem, including associated charging infrastructure.
Additionally, REC is open to considering renewable projects from developers in the commercial and industrial (C&I) segment that have top-rated offtakers.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 17.8 percent from Rs. 11,104 crores in Q1 FY24 to Rs. 13,079 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 2,968 crores to Rs. 3,460 crores, indicating a rise of nearly 16.6 percent.
Stock Performance
The stock has delivered multibagger returns of nearly 117.7 percent of returns in one year, and around 25 percent of positive returns in the last six months. So far in 2024, the shares of REC Limited have given positive returns of about 28.6 percent.
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About the Company:
Incorporated in 1969, REC Limited is engaged in the business of extending financial assistance across the power sector value chain and is a Systemically Important (Non-Deposit Accepting or Holding) NBFC registered with the RBI.
Written by Shivani Singh
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