1:3 Bonus Issue: Multibagger PSU Approves Rs 4.50/Share Dividend; Buy For TP Rs 500-515

Maharatna public sector undertaking, REC Ltd on Tuesday recommended its 3rd interim dividend of Rs 4.50 per equity share of Rs 10/- each for the financial year 2023-24. The record date for the interim dividend has already been fixed as March 28, 2024. Last trading price of REC Ltd shares on BSE is Rs 428.30 per share with intraday fall of 1.81%. REC stock offered return of 262% in last 1-year and gave return of 354% in last 2-years. Check details below:

REC Ltd Declares Interim Dividend: As per the regulatory filing of the BSE, "Declaration of 3rd interim dividend @ Rs 4.50/- (Rupees Four and Paise Fifty only) per equity share of Rs 10/ - each for the financial year 2023-24. Further, as earlier informed, the record date for the said interim dividend is Thursday, March 28, 2024 and the said interim dividend shall be paid on or before April 17, 2024 to those shareholders, whose names appear (a) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on March 28,2024 in respect of shares held in electronic form; and (b) as members in the register of members on March 28, 2024 in respect of physical shares."

REC Sets Record Date For Dividend: The company fixed March 28, 2024 as the record date for interim dividend. The BSE filing stated, "The Company fixed Thursday, March 28, 2024 as 'Record Date' for the purpose of ascertaining the eligibility of the shareholders for payment of said 3rd Interim dividend, if declared by the Board of Directors."

LKP Securities Recommends Buy Call: The analyst has recommended buy call to REC Ltd shares with target price of Rs 500-515 apiece. The analyst said in its March 12, 2024 report, the stock has exhibited a robust breakout on daily charts, indicating a bullish undertone. With a lower end support at Rs 460 acting as a cushion for the bulls, the upside potential targets for the stock are Rs 500-Rs 515. If you buy REC shares at current market price of Rs 429.65 apiece, you can fetch potential gain of 19.87%.

REC Shares Performance & Return: The 52-week high price of REC shares on BSE is Rs 524.00 per share and 52-week low price is Rs 113.15 per share. The company has a market capitalisation Rs 1,12,859.98 crore. REC shares witnessed decline of 11.22%, fell 8.30% in last 1-month, gave return of 71% in last 6-months, and soared 262% in last 1-year. In last 2-years, REC shares gained 354% and gained 285% in last 5-years.

REC Technical: The score is 55.2 and stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. RSI is 41.2, RSI below 30 is considered oversold and above 70 overbought. MFI is 55.7, MFI below 30 is believed to be oversold and above 70 overbought. FII/FPI surged holdings from 20.36% to 20.60% in December 2023 quarter. Number of FII/FPI investors soared from 728 to 867 in December 2023 quarter, as per Trendlyne data.

REC Dividend History: As per the Trendlyne data, "REC Ltd announced 36 dividends since September 8, 2008. In last 12-months, REC announced an equity dividend amounting to Rs 10.85 per share. At the current share price of Rs 429.65, REC offers dividend yield of 2.54%.

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

REC Quarterly Results: The PSU declared 18% growth in its Net Interest Income (NII) to Rs 4,159 crore for the October-December period. Its net profit for the December 2024 quarter soared by 14% from last year to Rs 3,269.3 crore. The Maharatna's asset quality bettered sequentially, with gross NPA improving to 2.78% from 3.14% in September. Net NPA declared at 0.82% from 0.96% in the previous quarter. Its quarterly disbursements stood at Rs 46,358 crore, up 56% from last year.

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.

Disclaimer: The stock has been picked from the brokerage report of LKP Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.