Rs 5/Share Dividend, 1:3 Bonus: Buy Multibagger Maharatna PSU After Q4, TP Rs 595

Leading brokerage firm CLSA has recommended buy call to large cap Maharatna PSU REC Ltd share with target price of Rs 595 apiece. Current market price of REC share on BSE is Rs 557.65 per share with intraday gain of 0.63%. REC shares traded 2nd consecutive 52-week high today after the company recommended final dividend of Rs 5/share and growth of 33% in its net profit to Rs 4079.09 crore for the quarter ended March 31, 2024 as compared to the net profit if Rs 3065.37 crore declared in the corresponding quarter of last year. REC shares offered highly attractive return of 309% in last 1-year. More details below:

REC Q4: It declared its total income for the Q4 ended March 2024 at Rs 12,706.66 crore as against Rs 10,254.63 crore declared in the year ago period. The company for the entire FY24 announced its net profit at Rs 14,145.46 crore as against Rs 11,166.98 crore declared in FY 2023.

REC Shares Performance & Return: The 52-week high price of REC shares on BSE is Rs 567.05 per share (as on 03/05/2024) and 52-week low price is Rs 127.40 per share (as on 19/05/2023), respectively. Its market capitalisation is Rs 1,46,749.57 crore. REC shares offered stunning returns of 84% in last 6-months, jumped 487% in last 2-years, and gave return of 484% in last 3-years.

REC Declares Dividend: According to the BSE filing of REC, "recommendation of final dividend @ Rs 5/ -(Rupees Five only) per equity share of Rs 10/- each for the financial year 2023-24, subject to approval of shareholders in the ensuing Annual General Meeting (AGM). This is in addition to the Interim Dividend(s) of Rs 11/- per equity share, already declared during the financial year 2023-24 in three tranches, thereby making total dividend for the Financial Year 2023 21 to n6l per equity share on face value of Rs 10 each."

Brokerages Recommend Buy Call: Brokerage firm CLSA has maintained a buy rating on the REC share with a target price of Rs 595 per share.

REC Technical: The score is 73.7 and stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. RSI is 78.7, RSI below 30 is considered oversold and above 70 overbought. MFI is 86.7, MFI below 30 is believed to be oversold and above 70 overbought. FII/FPI have decreased holdings from 20.60% to 19.91% in Mar 2024 quarter. Number of FII/FPI investors increased from 867 to 921 in Mar 2024 quarter. Mutual Funds have increased holdings from 8.32% to 9.48% in Mar 2024 quarter, as per Trendlyne data.

REC Dividend History: REC Ltd announced 36 dividends since September 8, 2008. In last 12-months, REC announced an equity dividend amounting to Rs 15.35 per share. At the current share price of Rs 456.85, REC offers dividend yield of 2.76%, according to the Trendlyne data.

REC Bonus History: REC announced 2 bonuses since September 28, 2016. The last Bonus that REC declared was in the ratio 1:3 with ex-bonus date as August 17, 2022, according to Trendlyne.

About: REC is a Maharatna Central Public Sector Undertaking under the Ministry of Power. It is a leading infrastructure finance company. Its business activities involve financing projects in the complete power sector value chain, be it generation, transmission or distribution. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through its extensive network of 22 offices across the country.

Disclaimer:

The stock has been picked from the brokerage report of CLSA. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.