Rs 3.50/Share Dividend By REC: Shall Be Paid By August 23; Buy For TP Rs. 675-770 In 2-10 Weeks

Under the administrative authority of the Ministry of Power of Govt of India, REC Limited is a Maharatna PSU company. It is registered with the RBI as an Infrastructure Financing Company (IFC), Public Financial Institution (PFI), and Non-Banking Finance Company (NBFC). With 89% of its loans going to the public sector, REC's loan book stood at Rs 5,09,371 Cr as of March 31, 24. There was Rs 68,783 Cr in the company's net worth. REC has been granted the highest Domestic Rating of "AAA" for long-term borrowing by CRISIL, ICRA, and IRRPL.

REC Dividend

The Board of Directors considered and approved the "Declaration of interim dividend @: Rs 3.50/ - (Rupees Three and Paise Fifty only) per equity share of Rs 10 each for the financial year 2024-25. Further, the record date for the said interim dividend is Friday. August 9, 2024 and the said interim dividend shall be paid/dispatched on or before August 23,2024 to those shareholders, whose names appear (a) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on August 9,2024 in respect of shares held in electronic form; and (b) as members in the register of members on August 9, 2024 in respect of physical shares," said REC in a stock exchange filing on 27th July.

REC Q1 Results

In an exchange filing, REC reported a 16.57 per cent boost in consolidated net profit to Rs 3,460.19 crore for the June quarter, compared to a net profit of Rs 2,968.05 crore in the year-ago quarter. From Rs 11,108.16 crore in Q1FY24 to Rs 13,092.44 crore in Q1FY25, total income increased. Expenses reached Rs 8,743.22 crore in the quarter under review against Rs 7,386.99 crore a year ago. The earnings per share (EPS) grew by sixteen per cent to Rs 13.07 per share at the end of June 2024 from Rs 11.24 per share in June 2023. As of June 30, 2024, the company's net worth has grown by 19% year on year to Rs 72,351 crores. Net Interest Income (NII) for the firm grew from Rs 3,406.3 crore to Rs 4,479.2 crore, a 31.5% year-on-year growth. While the Net Non-Performing Assets (NNPA) ratio fell to 0.82% from 0.86% in the previous quarter, the Gross Non-Performing Assets (GNPA) ratio jumped to 2.61% from 2.71%.

REC Share Price Target

"Corporate Finance Corporation REC Limited's current price movement has garnered the attention of many market participants looking for stocks to explore the financial space. Those interested in the prospect of this company can consider the buying range of Rs. 640-645 for a target price of Rs. 675-770. They can hold this stock for a period of 2-10 weeks, given they adhere to a stop loss of Rs. 596," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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