Shares of the Maharatna company surged around 8 percent in Friday’s trading session after reaching a major milestone. On a weekly timeframe, the company’s shares are trading in the ‘overbought’ zone, i.e., above RSI 70.
With a market capitalisation of Rs. 98,588 crores, the shares of REC Ltd started Friday’s session positively at Rs. 354.90 compared to its previous close at Rs. 348.70. The shares hit a high of Rs. 382.70, gaining around 8 percent, also recorded as the company’s fresh 52-week high.
Such a bullish movement was observed after the company, in an exchange filing with the BSE, mentioned that it crossed the disbursement level of Rs. 1,00,000 crore in a year for the first time.
In the corresponding period of 8 months of FY22-23, the disbursements were reported at Rs. 46,075 crores. Moreover, the company is anticipating Rs. 4,00,000 crore in sanctions and Rs. 1,50,000 crore in disbursements for the current year.
Looking at the financial statements, the revenue increased marginally by 5 percent from Rs. 11,087 crores during the June quarter to Rs. 11,688 crores in the September quarter. In addition, the net profits jumped by 28 percent from Rs. 2,968 crores to Rs. 3,789 crores keeping the timeframe the same.
The company has planned to focus on the ‘Renewable Energy’ portfolio. For this, the company targets to increase the portfolio by 10 times to Rs. 3 lakh crore by 2030. Furthermore, the company is expecting a significant investment in the grid for renewable energy projects, estimating a requirement of Rs. 15-20 lakh crore in the next seven years.
According to the latest shareholding pattern on BSE, the Government of India holds a 52.63 percent stake in the company, FIIs have a considerable stake of 20.36 percent, DIIs have 14.14 percent shares, and the remaining 12.87 percent is held by Retail Investors.
REC Ltd is a subsidiary company of Power Finance Corporation Ltd which, in turn, is under the ownership of the Ministry of Power, the government of India. The company is engaged in financing projects in the complete power sector value chain from generation to distribution. It has also diversified into areas like roads, metro rails, and airports.
Written By Vaibhav Patil
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