RECLTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | RECLTD | Market Cap | 87,741 Cr. | Current Price | 333 ₹ | High / Low | 450 ₹ |
| Stock P/E | 5.11 | Book Value | 314 ₹ | Dividend Yield | 5.40 % | ROCE | 9.92 % |
| ROE | 21.5 % | Face Value | 10.0 ₹ | DMA 50 | 351 ₹ | DMA 200 | 375 ₹ |
| Chg in FII Hold | -1.51 % | Chg in DII Hold | 0.35 % | PAT Qtr | 4,043 Cr. | PAT Prev Qtr | 4,426 Cr. |
| RSI | 43.9 | MACD | -5.62 | Volume | 71,62,268 | Avg Vol 1Wk | 1,03,32,103 |
| Low price | 321 ₹ | High price | 450 ₹ | PEG Ratio | 0.32 | Debt to equity | 6.24 |
| 52w Index | 9.59 % | Qtr Profit Var | 0.35 % | EPS | 65.2 ₹ | Industry PE | 17.6 |
📊 REC Ltd shows strong fundamentals but weak technical signals, making it a cautious yet promising candidate for swing trading. The RSI at 43.9 is neutral, while MACD (-5.62) indicates bearish momentum. The stock is trading below both its 50 DMA (351 ₹) and 200 DMA (375 ₹), showing short-term weakness. However, with a very low P/E of 5.11 compared to industry average of 17.6, high dividend yield (5.40%), and strong ROE (21.5%), the fundamentals remain attractive.
💡 Optimal Entry Price: Around 325–335 ₹ (near current support)
💡 Exit Strategy (if already holding): Consider exiting near 350–355 ₹ (50 DMA resistance) unless momentum strengthens.
🌟 Positive
- Low P/E ratio (5.11) compared to industry average (17.6), indicating undervaluation.
- Strong ROE (21.5%) supports shareholder returns.
- Dividend yield of 5.40% provides steady income.
- EPS of 65.2 ₹ reflects strong earnings power.
- Quarterly PAT of 4,043 Cr. shows consistent profitability.
⚠️ Limitation
- High debt-to-equity ratio (6.24), typical for financing companies but adds risk.
- ROCE at 9.92% is modest compared to peers.
- Stock trading below both 50 DMA and 200 DMA.
- FII holdings declined (-1.51%), showing reduced foreign investor confidence.
📉 Company Negative News
- Weak technical indicators: MACD negative and trading below key moving averages.
- Quarterly PAT declined slightly (4,043 Cr. vs 4,426 Cr.).
- Reduced foreign institutional investor holdings.
📈 Company Positive News
- Strong dividend yield supports investor confidence.
- Valuation remains attractive compared to industry peers.
- Stable profitability with EPS of 65.2 ₹.
- DII holdings increased (+0.35%), showing domestic support.
🏭 Industry
- Industry P/E at 17.6, while REC trades at a discount (5.11).
- Power financing sector benefits from infrastructure and energy expansion in India.
- Government-backed entity provides stability and long-term demand visibility.
✅ Conclusion
REC Ltd is fundamentally strong and undervalued but technically weak in the short term. Entry near 325–335 ₹ is favorable, with an exit target around 350–355 ₹. Traders should remain cautious due to weak momentum, while long-term investors may benefit from strong dividends and consistent profitability.