1:3 Bonus Issue, 2.98% Dividend Yield: Maharatna PSU NBFC Stock REC Slips 10% In September; BUY For Rs 627/TP

Brokerage Prabhudas Lilladher has recommended BUY on Maharatna PSU company, REC Ltd, a financial services provider in power sector. Currently, REC shares are at Rs 554.50 apiece, while the brokerage has recommended target price of Rs 627.

REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).

REC has evolved and expanded its financing mandate to cover the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc. More recently REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.