97% Returns In 6 Months: PSU Stock Hits New 52-Week High, Doubles Market Cap; Do You Own?

Government-backed NBFC focusing on providing financial services to the power sector, REC Ltd witnessed an impressive rise in its shares on August 11 to hit a fresh 52-week high. Overall, the stock rallied by nearly 6.5% in a single day on BSE. REC also doubled its market cap! The reason behind this stellar performance was that REC secured a coveted place in the esteemed Morgan Stanley Capital International (MSCI) Global Standard Index with effect from September 1, 2023. However, REC shares have been on a bullish note so far in 2023 and gave nearly 97% returns to its investors in just six months.

On Friday, REC shares closed at Rs 224.25 apiece, up by 3.51% on BSE. The stock gained by 6.48% with a new 52-week high of Rs 230.70 apiece.

In a statement on August 11, the Power Ministry said, "REC Limited, the Maharatna Central Public Sector Enterprise under the Ministry of Power, has secured a coveted place in the esteemed Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1st September 2023."

The ministry cited a recent report by Nuvama Alternative & Quantitative Research highlighted that REC stocks were considered strong contenders for the November 2023 review. The analysis conducted by Nuvama Alternative & Quantitative Research anticipates REC's inflows to be around $184 Million.

"The inclusion of REC in MSCI solidifies REC's status as a leading player in the financial sector and market, and opens up new horizons to expand its reach and influence on a global scale and level," the ministry added, "The entry of REC into the MSCI index is a commendable one and reinstates its stature as one of the premier financial organizations across the globe."

Further, it may be noted that, REC shares have more than doubled in last one year, from Rs 100.20 on August 10, 2022, to Rs 230.70 on August 11, 2023.

In the trading week that ended on August 11, REC shares rallied by 10.5% on the BSE. While its monthly upside is Rs 55.30 or 32.73% on the exchange. But in six months, REC shares skyrocketed by Rs 110.25 apiece or 96.71%.

Year-to-date, the stock's upside is more than 86%. Meanwhile, in a year, the stock became a multi-bagger with a surge of Rs 121.42 or 118.08%.

The MSCI Global Standard Index is a series of international equity indexes created by MSCI Inc. These indexes are widely used by investors, fund managers, and financial professionals to measure the performance of global equity markets.

Founded in 1969, REC has completed over fifty years of operations. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. Its business activities involve financing projects in the complete power sector value chain; for various types of projects including Generation, Transmission, Distribution and Renewable Energy. REC's funding illuminates every fourth bulb in India. REC has recently diversified into financing infrastructure and the logistics sector as well.