Rs 4 Dividend By Maharatna PSU Stock: November 8 Record Date, To Be Dispatched By November 22; BUY?

A 'Maharatna' company, REC is regulated by the Ministry of Power in the Government of India. It is registered with the RBI as an Infrastructure Financing Company (IFC), Public Financial Institution (PFI), and Non-Banking Finance Company (NBFC). State, Centre, and private companies can obtain long-term loans and other financial instruments from REC. REC encompasses all aspects of the power-infrastructure industry, including generation, transmission, distribution, renewable energy, and emerging technologies such as green hydrogen, electric vehicles, and battery storage.

REC Dividend

The Board of Directors considered and approved "Declaration of 2nd interim dividend @: Rs 4/- (Rupees Four ouly) per equity share of Rs 10 - each for the financial year 2024-25. Further, the record date for the said interim dividend is Friday, November 8, 2024 and the said interim dividend shall be paid/ dispatched on or before November 22, 2024 to those shareholders, whose names appear (i) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on November 8, 2024 in respect of sh.ares held in electronic form; and (ii) as members in the register of members on November 8, 2024 in respect of physical shares," said the PSU company in a stock exchange filing.

REC Financials

On Saturday, October 26, REC Ltd. said that its net profit for the second quarter, which ended on September 30, 2024, increased 6.2% year on year (YoY) to Rs 4,005.5 crore. According to REC's regulatory filing, the company reported a net profit of Rs 3,773.2 crore for the corresponding quarter of the previous fiscal year.

Compared to the corresponding quarter of FY24, when net interest income (NII) was Rs 3,856.2 crore, it increased by 21.4% to Rs 4,680.4 crore in Q2FY25. Compared to 2.61% in the June quarter, the gross non-performing asset (GNPA) was 2.53% in the September quarter. Net NPA was 0.88%, down from 0.82% in the previous quarter.

In comparison to the September 2023 quarter, when earnings per share (EPS) were Rs 25.57 per share, they accelerated to Rs 28.28 per share for the period ending September 30, 2024. The loan book grew by 15.2% from Rs 4.74 lakh crore in Q2FY24 to Rs 5.46 lakh crore as of September 30, 2024. By September 30, 2024, its net worth had increased by 15% year on year to Rs 72,893 crore from Rs 63,117 crore in the same period in 2023.

REC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "REC Ltd is trading around Rs 519 and recently formed a double bottom pattern, indicating a bullish reversal from a critical support zone. This reversal, paired with increased trading volumes, signals heightened investor interest and potential short-term gains with a target of Rs 600. The RSI stands at 47, which may suggest further consolidation or minor pullbacks before gaining strong upward momentum."

"While REC trades above its 200-day EMA, confirming its long-term uptrend, it is currently consolidating around its 20-day and 50-day EMAs, suggesting possible short-term weakness. A sustained move above Rs 540 could provide an advantageous entry point for long positions. Traders may consider buying REC within the current price range of Rs 510-515, targeting Rs 600. To manage risk, a stop-loss should be set at Rs 490, accounting for possible short-term volatility. Supported by both technical indicators and market momentum, this setup presents a promising opportunity for traders," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.