REC Limited (RECLTD) Fair Value & Analysis
Financial Services · IN · Market cap ₹924B
Fair value as of: Aug 13, 2026
From 9 valuation models · updated yesterday
Fair value updated Aug 13, 2026, revised from ₹704.90 to ₹692.00 (−1.8%) since Jul 14, 2026. Share price −1.7% over the past month.
A solid business, screening 100% undervalued on our models.
What matters now
- The price is below even our cautious bear case (₹519.00). The market is more pessimistic than our downside scenario.
- Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range ₹63.67 – ₹593.20 · fair‑value band ₹519.00 – ₹865.00 · the ₹346.50 price screens below the ₹692.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
REC Limited (RECLTD) currently trades at ₹346.50, while our model-based Fair Value estimate is ₹692.00, implying the stock looks roughly 99.7% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
Over the trailing twelve months, REC Limited generated revenue of ₹231B at a net margin of 70.6%. Revenue declined 14.4% year over year. It earns a return on equity of 20.0%. Net debt stands at ₹5.1T. Fundamentals as of Aug 13, 2026
Our scenario range runs from ₹519.00 (bear case) to ₹865.00 (bull case); at ₹346.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -50% fair-value upside, at 100%, RECLTD screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 9 models by family
Widest divergence: Earnings-Based (₹893.06) versus Asset-Based (₹216.41). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 46 · Market factors (momentum, volatility) 53
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
REC Limited, together with its subsidiaries, engages in the provision of financing services for power generation, transmission, and distribution projects in India.
Full company description
REC Limited, together with its subsidiaries, engages in the provision of financing services for power generation, transmission, and distribution projects in India. The company primarily offers long, medium, and short-terms loans; debt refinancing, equity financing, financing of equipment manufacturing for power sector and coal mines; policy for funding against regulatory assets, and revolving bill payment facility services; and provides letter of undertaking in lieu of bank guarantee, etc. It also acts as a nodal agency for the implementation of Pradhan Mantri Sahaj Bijli Har Ghar Yojana, Pradhan Mantri Surya Ghar Muft Bujli Yojana, Deen Dayal Upadhyaya Gram Jyoti Yojana, and National Electricity Fund. In addition, the company acts as the bid process coordinator for selection of transmission service provider through tariff based competitive bidding process for independent inter-state and intra-state transmission projects; provides project implementation and consultancy services in power sector; and operates National Feeder Monitoring System, a cloud-based IT and analytical platform, designed to monitor the reliability and quality of power. It serves central/state government power utilities, as well as private sector power utilities. REC Limited was formerly known as Rural Electrification Corporation Limited and changed its name to REC Limited in October 2018. The company was incorporated in 1969 and is based in Gurugram, India. REC Limited is a subsidiary of Power Finance Corporation Limited.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
REC Limited reported revenue of ₹584B in FY2026 versus ₹384B in FY2022, a compound +11.0%/yr. Reported net income was ₹163B in FY2026, compounding +12.9%/yr from FY2022.
of which total revenue +10.1 pp · buybacks/dilution +0.0 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
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Peer Group
Credit Services · 334 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Credit Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Visa Inc V | $359.42 | $198.27 | -45% |
| Mastercard Incorporated MA | $561.44 | $221.87 | -60% |
| Bajaj Finance Limited BAJFINANCE | ₹1,094 | ₹397.61 | -64% |
| Shriram Finance Limited SHRIRAMFIN | ₹1,117 | ₹553.83 | -50% |
| Cholamandalam Investment and Finance Company CHOLAFIN | ₹1,918 | ₹796.52 | -58% |
| Tata Capital Limited TATACAP | ₹367.05 | ₹149.40 | -59% |
| Power Finance Corporation PFC | ₹376.50 | ₹615.85 | +64% |
| Muthoot Finance Limited MUTHOOTFIN | ₹2,876 | ₹3,429 | +19% |
| Indian Railway Finance Corporation IRFC | ₹88.35 | ₹69.72 | -21% |
| L&T Finance Limited LTF | ₹312.60 | ₹154.67 | -51% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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