RECLTD
FAIRLY_VALUEDREC
Capital Goods · NSE
↑ 45.5% vs fair value
52W Low
₹304
+10.8% from low
52W High
₹429
-21.4% from high
Valuation Gauge
Current Price
₹337
Fair Value
₹618
Fair Value Analysis
₹618
Based on balance sheet strength analysis and earnings growth potential for Capital Goods sector companies | Sector-cheap: P/E at 2th percentile vs sector peers. | CAUTION: ROCE declining (latest 3.5%) — returns on capital are falling; verify this isn't a value trap.
Balance Sheet Value
71% weight
Growth Valuation
29% weight
Price vs Market
Shareholding Pattern
Stock Health Score
Financially Healthy
Profitability
ROE of 20.0% is above the Capital Goods sector benchmark of 15% — strong returns
Debt & Leverage
D/E ratio of 6.1x is significantly above the Capital Goods sector norm — high leverage risk
Valuation vs Peers
P/E of 5.6x trades at a 95% discount to Capital Goods sector median (112x) — attractively valued
Cash Flow
FCF margin of 27.0% — exceptional cash generation (₹5,902 Cr)
Earnings Growth
5yr EPS CAGR of 13.4% is well below Capital Goods sector average of 42.2%
Dividend
Dividend yield of 6.7% provides strong shareholder returns (benchmark: 1.5%)
Company Health Timeline
10-year financial health at a glance
Sentiment Trend — Last 30 Days
Historical Returns
Key Ratios & Growth
FCF Yield
2.9%
Free cash flow / market cap
Revenue Growth (YoY)
-5.0%
Year-on-year revenue change
Profit Growth (YoY)
-21.7%
Year-on-year PAT change
Operating Cash Flow
₹6.0K Cr
TTM cash from operations
Key Financials
EPS (TTM)
₹61.9
P/E Ratio
5.6x
P/B Ratio
1.1x
ROE
20%
ROCE
—
Debt / Equity
6.07x
Beta
0.41
Div Yield
6.9%
FCF (Cr)
₹5,902 Cr
Revenue (Cr)
₹21,838 Cr
EPS Growth 5Y
13.5%
Mkt Cap (Cr)
₹91,070 Cr
52W High
₹428.7
52W Low
₹304.1
Book Value/Share
₹323.1
Financial History
| Period | Revenue | Op Profit | OPM% | PAT | EPS |
|---|---|---|---|---|---|
| 2026-03-31 | ₹59.6K Cr | ₹20.8K Cr | 35.0% | ₹16.3K Cr | ₹61.93 |
| 2025-03-31 | ₹56.4K Cr | ₹20.1K Cr | 36.0% | ₹15.9K Cr | ₹60.32 |
| 2024-03-31 | ₹47.5K Cr | ₹17.9K Cr | 38.0% | ₹14.1K Cr | ₹53.72 |
| 2023-03-31 | ₹39.5K Cr | ₹13.9K Cr | 35.0% | ₹11.2K Cr | ₹42.41 |
| 2022-03-31 | ₹39.3K Cr | ₹12.4K Cr | 32.0% | ₹10.0K Cr | ₹38.11 |
| 2021-03-31 | ₹35.6K Cr | ₹10.8K Cr | 30.0% | ₹8.4K Cr | ₹31.82 |
| 2020-03-31 | ₹29.9K Cr | ₹7.0K Cr | 23.0% | ₹5.0K Cr | ₹18.88 |
| 2019-03-31 | ₹25.4K Cr | ₹8.1K Cr | 32.0% | ₹5.7K Cr | ₹21.80 |
| 2018-03-31 | ₹22.7K Cr | ₹5.9K Cr | 26.0% | ₹4.5K Cr | ₹16.90 |
| 2017-03-31 | ₹24.3K Cr | ₹9.0K Cr | 37.0% | ₹6.3K Cr | ₹23.98 |
| 2016-03-31 | ₹24.1K Cr | ₹8.2K Cr | 34.0% | ₹5.7K Cr | ₹21.61 |
| 2015-03-31 | ₹20.5K Cr | ₹7.6K Cr | 37.0% | ₹5.3K Cr | ₹20.30 |
Compounded Growth Rates
Sales Growth
Profit Growth
EPS Growth
Peer Comparison
Capital Goods| Stock | Price | Fair Value | MoS% | P/E | ROE | Signal |
|---|---|---|---|---|---|---|
Electrosteel Castings Limited | ₹78.2 | ₹228.8 | +65.8% | 16.1 | 13.2% | UNDERVALUED |
Vesuvius India Limited | ₹466 | ₹1,325.9 | +64.8% | 37.2 | 17.1% | UNDERVALUED |
Power Finance Corporation | ₹430.4 | ₹824.5 | +47.8% | 5.7 | 20.5% | FAIRLY_VALUED |
REC | ₹336.9 | ₹618.3 | +45.5% | 5.6 | 20.0% | FAIRLY_VALUED |
Surya Roshni Limited | ₹245.1 | ₹381.4 | +35.7% | 16.6 | 12.8% | FAIRLY_VALUED |
Shakti Pumps (India) Limited | ₹504.1 | ₹695.5 | +27.5% | 24.2 | 18.0% | UNDERVALUED |
AGI Greenpac Limited | ₹578.6 | ₹663.1 | +12.8% | 10.7 | 15.6% | FAIRLY_VALUED |
Elecon Engineering | ₹534 | ₹544.2 | +1.9% | 31.9 | 15.8% | FAIRLY_VALUED |
Institutional Activity
Bulk deals, block deals, short selling & delivery volume — NSE data
Insider Trading
Community Pulse
Share this Stock
Download card · Share on WhatsApp
Share on WhatsApp, Twitter, or any group — each share brings new users to Veritas Quant