RECLTD - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.4

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📊 Fundamental Analysis Report

• Stock Code: RECLTD
• Market Cap: ₹98,759 Cr
• Current Price: ₹375
• 52W High/Low: ₹573 / ₹349
• EPS: ₹65.1
• Stock P/E: 5.76 vs Industry P/E: 23.7 🟢
• PEG Ratio: 0.36 🟢 (Undervalued)
• Book Value: ₹314 | P/B Ratio: ~1.19 ✅
• ROE: 21.5% | ROCE: 9.92% 🔶
• Debt to Equity: 6.24 ❗ (Highly Leveraged)
• Dividend Yield: 4.80% 💰
• Quarterly PAT: ₹4,426 Cr (↓0.6%)
• RSI: 49.2 | MACD: 0.10 📉

✅ Positive

• Low P/E and PEG ratios indicate strong value relative to earnings and growth.
• High ROE reflects strong profitability and shareholder returns.
• Attractive dividend yield of 4.80% supports income-focused investors.
• Price near DMA 50 and 200 suggests technical support and stability.

⚠️ Limitation

• High debt-to-equity ratio (6.24) increases financial risk and interest burden.
• ROCE below 10% indicates moderate capital efficiency.
• Volume below weekly average suggests cooling investor interest.

📉 Company Negative News

• FII holding declined by 1.19%, signaling cautious foreign sentiment.

📈 Company Positive News

• Stable quarterly PAT with YoY profit growth of 10.5%.
• DII holding increased by 0.35%, reflecting domestic institutional confidence.
• Strong EPS and consistent dividend payout reinforce investor trust.

🏦 Industry

• RECLTD operates in the financial services sector, primarily focused on power sector financing.
• Industry P/E of 23.7 is significantly higher, suggesting RECLTD is undervalued.
• Sector benefits from infrastructure development and energy transition initiatives.

🧭 Conclusion

• Entry Zone: ₹360–₹370 (near support and RSI neutral)
• Long-Term View: Strong value metrics and strategic importance make RECLTD a solid long-term hold. Monitor debt levels and accumulate on dips.