1:3 Bonus, Rs 4.5 Dividend: Maharatna PSU To Consider Dividend, Shares Rise 255% In 1-Yr

Maharatna public sector undertaking, REC Ltd shares jumped 1.11% on Wednesday, April 24 as the company is all set to consider, approve financial results, and recommend final dividend. Last trading price of REC share on BSE is Rs 440 per share. The Board of Directors will meet on April 30, 2024 for the same. It has a market capitalisation of Rs 1,15,861.86 crore. REC shares offered eye-popping returns of 356% in last 2-years. More details below:

REC To Consider Results, Dividend: As per the regulatory filing of the company dated April 24, 2024, "a meeting of the Board of Directors of REC Limited will be held on Tuesday, April 30, 2024 inter-alia for the following:-
1. To consider and approve audited financial results (standalone & consolidated) of the Company for the quarter and year ended March 31, 2024.
2. To consider and recommend final dividend, if any, for the financial year 2023-24."

REC Announces 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 124.05 per share (as on 25/04/2023), respectively. REC shares offered return of 2.48% in last 1-weeek, fell over 5% in last 3-months, gained over 58% in last 6-months, jumped 255% in last 1-year, and soared 363% in last 3-years, and surged 289% in last 5-years.

REC Technical: The score is 52.7 and stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. RSI is 46.5, RSI below 30 is considered oversold and above 70 overbought. MFI is 44.6, 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, 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 15.35 per share. At the current share price of Rs 440.00, REC offers dividend yield of 3.49%.

REC Bonus History: REC offered 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.

REC Financials: The PSU announced 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 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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