When investors look for high dividend PSU stocks with steady cash flows, REC Limited often comes into the conversation.
REC Ltd Share Price Target
REC Limited is a Maharatna public sector NBFC focused on financing India’s power and infrastructure sector. Established in 1969, the company provides loans to projects across power generation, transmission, and distribution, including renewable energy initiatives. It primarily lends to state electricity boards (DISCOMs), government entities, and private sector players.
Financial table for REC Ltd
Market Cap: ₹98,325 Cr. (As of April 2026)
Price to Earnings: 5.70
Return on equity: 21.5%
Debt to equity: 6.18
Current ratio: 1.32
Dividend Yield: 4.82%
Return on assets: 2.73%
ROCE: 9.96%
Face Value: ₹10
52 Week High: ₹448
52 Week Low: ₹304
1. Year 2020 Start of Year: 107.48 End of Year: 100.42 Return: -6.57% Reason for the move Weak sentiment due to concerns over power sector NPAs and slow growth. 2. Year 2021 Start of Year: 100.50 End of Year: 100.35 Return: -0.15% Reason for the move Flat performance due to stable but unexciting financial growth. 3. Year 2022 Start of Year: 100.80 End of Year: 116.50 Return: 15.58% Reason for the move Increased power sector lending supported earnings growth. 4. Year 2023 Start of Year: 117.80 End of Year: 412.85 Return: 250.47% Reason for the move High dividend yield and improving fundamentals boosted investor interest. 5. Year 2024 Start of Year: 413.70 End of Year: 500.70 Return: 21.03% Reason for the move Stable asset quality reinforced investor confidence. 6. Year 2025 Start of Year: 501.25 End of Year: 356.80 Return: -28.82% Reason for the move Correction due to profit booking after sharp rally. Projected Targets: Year 2026 Target Range (₹): 400-460 Reason for the move Projected Targets: Year 2027 Target Range (₹): 480-530 Reason for the move Growth remains steady but not aggressive. Projected Targets: Year 2028 Target Range (₹): 540-575 Reason for the move Loan book growth continues at a stable pace. Projected Targets: Year 2029 Target Range (₹): 490-540 Reason for the move Strong positioning but limited valuation expansion. Projected Targets: Year 2030 Target Range (₹): 590-650 Reason for the move Fully integrated power + renewable financing NBFC ensures stable earnings. REC Ltd is not a flashy stock and that’s exactly its strength. Strong cash flows Government backing High dividend yield Improving fundamentals 1. Is REC good for long term? Yes, for investors seeking: Stable returns High dividend income Low-to-moderate risk 2. Is REC Ltd a government company? Yes. REC is a Maharatna PSU, majority owned by the Government of India via PFC. 3. Which is better, REC or IRFC? REC → Better growth + yield IRFC → More stability, lower volatility 4. Is REC a good company? Fundamentally strong: High ROE Improving NPAs Strong dividend history 5. Is REC owned by Reliance? No. REC is a government-owned company, not related to Reliance Group.REC Ltd Shareholding Pattern
Historic Performance: REC Ltd Share Price Target 2020, 2021, 2022, 2023, 2024 & 2025
REC Ltd Share Price Target 2026, 2027, 2028 to 2030
Merger progress and strong loan growth support earnings.Conclusion
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