REC Ltd Share Price Target for 2025, 2030, 2040, 2050: REC Ltd, or Rural Electrification Corporation Limited, is one of India’s premier public sector financial companies specializing in financing power sector projects. A crucial player in the development of India’s electrical infrastructure, REC plays a vital role in electrifying rural areas. This article explores the project share price targets for REC Ltd in the upcoming years to assist investors in making informed decisions.
REC Ltd Share Details
Metric
Value
Open
₹408.00
High
₹414.00
Low
₹405.95
Market Cap
₹1.08 LCr
P/E Ratio
6.90
Dividend Yield
4.10%
52-week High
₹654.00
52-week Low
₹375.70
REC Ltd Share Price Target 2025, 2030, 2040, 2050
REC Ltd Share Price Target 2025 ₹1470, 2030 ₹4000, 2040 ₹8550, 2050 ₹10575. REC Limited, formerly Rural Electrification Corporation Limit, is an Indian public sector company which finances and promotes power projects across India.
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Stock price: RECLTD (NSE) ₹408.65 -0.80 (-0.20%)
Subsidiaries: REC Power Development and Consultancy Limited · See more
Overview of REC Ltd (Rural Electrification Corporation Limited)
REC Ltd is dedicate to improving India’s power sector by funding power generation, transmission, and distribution projects, especially in rural and underdeveloped areas. As a government-back entity, REC has gained significant traction as an investment choice, support by the government’s focus on electrifying rural regions and renewable energy projects. The company’s consistent revenue growth and stability make it an attractive long-term investment option.
Fundamental Analysis of REC Ltd
Below is a snapshot of the key metrics and financial indicators for REC Ltd:
Metric
Value
Market Capitalization
₹40,000 Crore
Debt to Equity Ratio
2.5
Return on Equity (ROE)
15%
Price to Earnings (P/E) Ratio
12
Dividend Yield
3%
REC Ltd Share Price Target 2025
For 2025, REC Ltd’s share price is project to experience substantial growth, with estimate targets ranging from ₹650 to ₹1470. The project average price for the year is ₹825.65. Here is the detailed monthly breakdown for 2025:
Month (2025)
Minimum Price (₹)
Maximum Price (₹)
January
₹650
₹685.02
February
₹677.02
₹726
March
₹690
₹770
April
₹715
₹795.95
May
₹780.65
₹826.60
June
₹820
₹890.25
July
₹856.60
₹940
August
₹890.25
₹977.55
September
₹925.30
₹1017.65
October
₹1007.55
₹1108.40
November
₹1100
₹1305
December
₹1305
₹1470
In 2025, REC Ltd’s share price is project to experience significant upward momentum, driven by increasing demand for electricity, especially in rural areas. This is due to the company’s critical role in electrifying underdeveloped regions, bolster by government support.
By 2030, the target range for REC Ltd’s share price is expect to rise significantly, with projections between ₹3054 and ₹4000. The average target for 2030 is ₹3554, reflecting the anticipate growth of the company in line with government electrification projects and the push for renewable energy.
Month (2030)
Minimum Price (₹)
Maximum Price (₹)
January
₹3054
₹3096
February
₹3085
₹3173
March
₹3165
₹3308
April
₹3208
₹3393
May
₹3350
₹3498
June
₹3389
₹3484
July
₹3400
₹3504
August
₹3485
₹3592
September
₹3540
₹3602
October
₹3505
₹3772
November
₹3654
₹3892
December
₹3880
₹4000
In 2030, REC Ltd’s performance is likely to be strong, owing to the ongoing government investment in rural electrification and renewable energy. These long-term projects will continue to generate stable returns, leading to steady stock price growth.
REC Ltd Share Price Target 2040
Looking further into the future, REC Ltd’s share price is expect to experience a major surge by 2040, with projected targets ranging from ₹6500 to ₹8550. The estimated average for the year is ₹7500. This growth is anticipate due to the increasing demand for electricity, both through conventional power generation and renewable sources.
Year (2040)
Minimum Price (₹)
Maximum Price (₹)
2040
₹6500
₹8550
The 2040 outlook for REC Ltd is optimistic, driven by ongoing electrification projects, policy support for renewable energy, and the increasing need for energy infrastructure development in rural India.
REC Ltd Share Price Target 2050
By 2050, REC Ltd’s share price may reach new heights, with a project range between ₹8700 and ₹10575. The average target for 2050 is ₹9000. This surge in share price is link to long-term investments in the energy sector, coupled with the company’s growing influence in India’s power industry.
Year (2050)
Minimum Price (₹)
Maximum Price (₹)
2050
₹8700
₹10575
The future projections for REC Ltd are highly favorable, thanks to the company’s role in modernizing India’s energy infrastructure and its key position in the country’s power sector.
Should I Buy REC Ltd Stock?
Before making an investment decision, potential investors should consider several factors such as REC Ltd’s growth prospects, the current market environment, and its solid financial performance. Given REC’s pivotal role in India’s power sector and its steady revenue growth, it represents an attractive long-term investment option.
Bull Case for Investing in REC Ltd
There are several reasons why investing in REC Ltd could be beneficial:
Government Focus on Renewable Energy: The Indian government is actively supporting renewable energy projects and rural electrification, which directly benefits REC Ltd.
Diversified Loan Portfolio: By financing various power sector projects, REC Ltd has reduced its exposure to risks from any one area.
Consistent Profitability: REC Ltd has experienced consistent sales growth and profitability, making it a reliable investment choice.
Attractive Valuation: REC’s current valuation, with a P/E ratio of 12, is considered undervalued by many analysts, presenting potential for growth.
Dividends: REC offers a respectable dividend yield, and the company consistently pays dividends to its investors, making it a good choice for income-focused investors.
Bear Case for Investing in REC Ltd
Despite the positives, there are some risks to consider:
Exposure to Stressed Assets: REC Ltd’s financial performance may be impacted by non-performing assets in the electricity sector.
Interest Rate Increases: A rise in interest rates could make borrowing more expensive for REC and its clients.
Competition: Private companies entering the power finance market could affect REC’s market share.
Policy Changes: Any adverse changes to government policies may impact REC’s performance.
Economic or Global Disruptions: Economic downturns or global events could potentially affect the electricity industry, impacting REC’s bottom line.
REC Ltd Earnings and Forecasts
REC Ltd’s profitability has remain strong due to its strategic emphasis on financing rural electrification and infrastructure development. With consistent revenue growth, the company is well-position to benefit from the ongoing government initiatives in the power sector. Experts forecast that REC Ltd will continue to grow due to its key role in India’s power sector. The increasing demand for electricity, especially in rural areas, will likely support the company’s expansion and financial performance.
Conclusion
In conclusion, REC Ltd presents a compelling investment opportunity for those looking to invest in India’s growing energy sector. With a positive outlook for the future, driven by the government’s focus on electrification and renewable energy, REC Ltd is likely to see substantial growth in the coming decades. Investors should keep an eye on market conditions and conduct thorough research before making any investment decisions.
Is Rec Ltd a good investment?
Is REC Ltd undervalued or overvalued? The key valuation ratios of REC Ltd’s currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
Is REC owned by Reliance?
REC is headquartered in Norway with operational headquarters in Singapore and regional hubs in North America, Europe, and Asia-Pacific. As of December 2021, REC is part of Reliance Industries Limited, a Fortune Global 500® company with revenues of USD 104.6 billion.
Who is the CEO of REC India?
Shri Vivek Kumar Dewangan is the Chairman & Managing Director of REC Limit since May 17, 2022. He is an IAS officer (Manipur:1993) and holds B.E. in Electronics from NIT, Bhopal and P.G. in Optoelectronics & Optical Communication from IIT, Delhi.
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