REC share price – PSU stock: 46% upside? Why CLSA upgraded REC shares
Foreign brokerage CLSA on Monday upgraded REC Ltd to ‘high-conviction outperform’ for its best in class loan growth, return on equity, and high dividend yield. The brokerage said the PSU stock is trading at mere 0.93 times its FY27 book value, which it finds attractive.
That said, given that the REC is likely to report mid-teens growth going ahead rather than 20 per cent, CLSA reduced its target on the stock to Rs 525 against Rs 590 earlier.
Following the development, the stock rose 5.47 per cent to hit Rs 380 level on BSE. Despite this, the stock is down 25 per cent for 2025 so far.
REC’s loan growth over the past 5-7 quarters has been exciting at 15-21 per cent. As discom disbursals peak, CLSA is now focusing on pending sanction…
