REC Ltd, a Maharatna company regulated by the Ministry of Power in India, has announced a second interim dividend of ₹4 per equity share for the financial year 2024-25. The record date for this dividend is set for November 8, 2024, and the payment will be dispatched by November 22, 2024. Shareholders on the register as of the record date will be eligible to receive this dividend.
Financial Performance for Q2 FY25
For the second quarter ending September 30, 2024, REC reported a 6.2% increase in net profit, amounting to ₹4,005.5 crore, compared to ₹3,773.2 crore during the same period last year. The company’s net interest income (NII) surged by 21.4% to ₹4,680.4 crore, up from ₹3,856.2 crore in Q2 FY24. The earnings per share (EPS) rose to ₹28.28, up from ₹25.57 a year prior.
The loan book also expanded significantly, increasing by 15.2% from ₹4.74 lakh crore in Q2 FY24 to ₹5.46 lakh crore as of September 30, 2024. The gross non-performing asset (GNPA) ratio improved slightly to 2.53%, down from 2.61% in the previous quarter, while net NPA was reported at 0.88%, up from 0.82% in the previous quarter.
Share Price and Market Analysis
REC’s shares are currently trading at around ₹519. Technical analysis indicates the formation of a double bottom pattern, signaling a potential bullish reversal. Analysts suggest a target price of ₹600 for the stock, recommending that investors consider buying within the price range of ₹510-515. A stop-loss should be set at ₹490 to mitigate risks from possible short-term volatility.
In summary, REC’s strong financial performance and positive market indicators position it as an attractive investment opportunity in the power infrastructure sector.
Disclaimer
This content is for informational purposes only and should not be considered as financial advice or a recommendation to buy or sell any securities. The information provided herein is based on publicly available data and is believed to be accurate at the time of writing. However, the performance of stocks and financial instruments is subject to market risks and fluctuations. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and associated parties do not bear any responsibility for any losses incurred based on the information provided.
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