Rs 5/Share Dividend: Multibagger Maharatna CPSE Declares 33% Rise In Net, Shares Rally

Large Cap Maharatna PSU, REC Ltd share today hit upper circuit when price of the stock rose to Rs 509.50 per share on BSE as it declared its financial results and recommended dividend. The company declared final dividend of Rs 5/share of Rs 10/- each for the financial year 2023-24. It also declared a surge of 33% in its net profit to Rs 4079.09 crore for the quarter ended March 31, 2024 as against the net profit of Rs 3065.37 crore declared in the corresponding quarter of last year. REC shares offered highly attractive return of 283.70% in last 1-year only.

It declared its total income for the Q4 ended March 2024 at Rs 12,706.66 crore as against Rs 10,254.63 crore declared in the year ago period. The company for the entire FY24 announced its net profit at Rs 14,145.46 crore as against Rs 11,166.98 crore declared in FY 2023.

REC Recommends Dividend: As per the regulatory filing of REC, "recommendation of final dividend @ Rs 5/ -(Rupees Five only) per equity share of Rs 10/- each for the financial year 2023-24, subject to approval of shareholders in the ensuing Annual General Meeting (AGM). This is in addition to the Interim Dividend(s) of Rs 11/- per equity share, already declared during the financial year 2023-24 in three tranches, thereby making total dividend for the Financial Year 2023 21 to n6l per equity share on face value of Rs 10 each."

Prabhudas Lilladher Recommends Buy Call: Brokerage firm Prabhudas Lilladher has assigned buy call with target price of Rs 515/share.

REC Turns 1.25 Lakh To Rs 3.59 Lakh In 1-Year: The price of REC Ltd share on April 27, 2023 was quoted at Rs 125.05 per share. If you had purchased 1000 shares on April 27, 2023 at the cost of Rs 125.05 per share (investment Rs 1,25,050 lakh), you would have got a corpus of Rs 354766.85 lakh as on April 27, 2024 considering REC offered 283.70% return during this span till April 30, 2024. You would have got a net profit of Rs 229716.9 lakh. It is worth mentioning that REC offered dividend of Rs 4.5/share with ex-dividend date as March 28, 2024. If we add the dividend income too, you would have got a total corpus of 3,59,266.9 lakh and a total net profit of Rs 2,34,216.9 lakh as on April 30, 2024. So, your investment of Rs 1,25,050 lakh precisely would have become 3,59,266.9 lakh in 1 year.

REC Declares Incorporation of Subsidiary: The exchange filing added, "this is to inform that Bhadla-III Power Transmission Limited (CIN: U42202DL2024GOI430036) has been incorporated as Wholly Owned Subsidiary of REC Power Development & Consultancy Limited (a Wholly Owned Subsidiary of REC Limited). The said company is also subsidiary company of REC Limited, in terms of the provisions of Section 2(87) of the Companies Act, 2013."
REC Shares Performance & Return: The 52-week high price of REC shares on BSE is Rs 524.00 per share (as on 08/02/2024) and 52-week low price is Rs 127.40 per share (as on 19/05/2023), respectively. REC has a market capitalisation of Rs 1,33,570.29 crore. REC shares gave return of 82% in last 6-months, soared 432% in last 2-years, and rallied 427% in last 3-years.

REC Technical: The score is 65.4 and stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. RSI is 57.6, RSI below 30 is considered oversold and above 70 overbought. MFI is 50.1, MFI below 30 is believed to be oversold and above 70 overbought. FII/FPI have decreased holdings from 20.60% to 19.91% in Mar 2024 quarter. Number of FII/FPI investors increased from 867 to 921 in Mar 2024 quarter. Mutual Funds have increased holdings from 8.32% to 9.48% in Mar 2024 quarter, as per Trendlyne data.

REC Dividend History: REC Ltd announced 36 dividends since September 8, 2008. In last 12-months, REC announced an equity dividend amounting to Rs 15.35 per share. At the current share price of Rs 456.85, REC offers dividend yield of 3.36%, according to the Trendlyne data.

REC Bonus History: REC announced 2 bonuses since September 28, 2016. The last Bonus that REC declared was in the ratio 1:3 with ex-bonus date as August 17, 2022, according to Trendlyne.

About REC Ltd: REC is a Maharatna Central Public Sector Undertaking under the Ministry of Power. It is a leading infrastructure finance company. Its business activities involve financing projects in the complete power sector value chain, be it generation, transmission or distribution. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through its extensive network of 22 offices across the country. REC came into being in 1969 to articulate a response to the pressing exigencies of the nation. Domestically, it holds the highest credit ratings from CRISIL, ICRA, IRRPL and CARE and internationally it is rated at par with the sovereign ratings.

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