REC Limited (RECLTD.NS) stock analysis

In our weekly check, REC Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 0, red flags: 8.

About REC Limited

REC Limited is a Financial Services company (Financial - Credit Services) based in India, listed on NSE as RECLTD.NS.

What our checks show for RECLTD.NS

Red flags

• Operating cash flow is only 0.37x net profit: part of the reported profit does not arrive as cash.
• Analysts expect revenue to shrink about 23% a year.
• The dividend takes 3559% of profit: little cushion if profit falls.
• The stock has fallen as much as 63% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.2 years.
• Return on capital (ROCE) is only 2.7%.

Strengths

• The net margin rose by 1.8 points over 5 years, to 27.9%.
• The gross margin is 99.4% and has risen by 56.8 points: pricing power is holding.
• Analysts expect the net margin to improve by 40.3 points from today's 27.9%.
• Revenue grew 15.1% a year over the last 3 years.
• Earnings per share grew 13.5% a year over the last 3 years.
• Net profit grew 13.5% a year over the last 3 years.

Similar companies

V · LTF.NS · MUTHOOTFIN.NS · MA · PFC.NS · SUNDARMFIN.BO

Questions

What grade does REC Limited (RECLTD.NS) have?

In our weekly check, REC Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 0, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RECLTD.NS stock?

This week's biggest flags for REC Limited: Profits not backed by cash, Weak revenue forecast, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.

What does REC Limited do?

REC Limited is a Financial Services company (Financial - Credit Services) based in India, listed on NSE as RECLTD.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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