SHORT TERM BUY / SELL REC LTD

SHORT TERM BUY / SELL REC LTD

BUY @ 141.50

TARGET : 155 TO 165 ++ POSSIBLE

Time Frame :15 days to 20 Days .

BASED ON NEWS

Corporate Profile

REC came into being in 1969 to articulate a response to the pressing exigencies of the nation. During the time of severe drought, the leaders sought to reduce the dependency of agriculture on monsoons by energizing agricultural pump-sets for optimized irrigation. Thereafter, we have ventured into newer paths and expanded our horizons to emerge today, as a leader in providing financial assistance to the power sector in all segments, be it Generation, Transmission or Distribution.

We are a Navratna company under the Ministry of Power. We fund our business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings, on our own. Domestically, we hold the highest credit ratings from CRISIL, ICRA, IRRPL and CARE and internationally we are rated at par with the sovereign ratings. Under the discerning leadership of highly qualified and experienced professionals, which has effectively harnessed the individual talents of all our employees, we have maintained consistent profit margins and paid dividends each year since fiscal 1998. We have thus propelled ourselves to a net worth of over ₹40,000 crore.

Our humble beginnings spearheaded our strides into the corporate world and to this day our commitment towards nation-building constitutes our core value. As a natural corollary, we have been appointed as the nodal agency by the Government of India for implementation of Saubhagya (Pradhanmantri Sahaj Bijli Har Ghar Yojana) and DDUGJY (Deendayal Upadhyaya Gram Jyoti Yojana), the schemes which aim at providing 24×7 sustainable and affordable powers to all households in the country. We have also been entrusted with the responsibility of being the coordinating agency for rolling out UDAY (Ujwal Discom Assurance Yojana) which seeks to operationally reform and financially turnaround the power distribution companies of the country.

Our two subsidiaries – RECPDCL (REC Power Distribution Company Limited) and RECTPCL (REC Transmission Project Company Limited) work in tandem with us to realise our shared mission by providing consultancy services in Distribution and Transmission sectors.

We take due cognizance of the fact that we owe our stupendous success to our customers, the unflinching commitment of our employees and our countrywide presence through 22 state offices which ensures easy accessibility. Having bolstered our share in the country’s total power capacity, we are poised to help build a sound infrastructure to provide affordable, accessible and sustainable power. 

Business Profile

REC is a Navratna Central Public Sector Undertaking under the Ministry of Power. It is a leading infrastructure finance company with a net worth of over ₹40,000 crore. Our business activities involve financing projects in the complete power sector value chain, be it generation, transmission or distribution. We provide financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through our extensive network of 22 offices across the country. 

The different types of projects funded by REC are as under:

·      Loan for Generation Projects

  • Setting up new power generating stations based on conventional sources of energy, i.e. Thermal, Hydro and Gas, along with associated areas like development of coal mines
  • Renovation and Modernization (R&M) of existing power generating stations based on conventional sources of energy
  • Setting up of power generation plants based on Renewable Energy sources like Solar, Wind, Small Hydro, Biomass etc.

·      Loan for Transmission Projects

  • Evacuation of power from new power generating stations and strengthening/ improvement of existing transmission system in the designated areas

·      Loan for Distribution Projects

  • Strengthening and improvement of the power sub-transmission and distribution system in the designated areas
  • Conversion of Low Voltage Distribution System (LVDS) to High Voltage Distribution System (HVDS) in rural areas
  • Purchase of equipment and materials for strengthening/ upgradation of T&D systems
  • Intensive load development for providing connections to rural consumers in already electrified villages
  • Setting up of electrical infrastructure for energization of agricultural pump sets

·      ​Short Term Loans / Medium Term Loans

  • Working capital requirements for purposes like purchase of fuel for power plant, purchase of power, purchase of material and minor equipment, system and network maintenance including repair of transformers, etc.

Disclaimer: I am Not a SEBI REGISTERED ANALYST. This Website & Its Owner, Creator & Contributor is Neither a Research Analyst or an Investment Advisor and Expressing Option Only as an Investor in Indian Equities. All trading strategies are used at your own risk. He/ She are Not Responsible for any Loss a Rising out of any Information, Post or Opinion Appearing on this Website. Investors are advised to do Own Due Diligence or Consult Financial Consultant before acting on Such Information. Author of this Website not providing any Paid Service and not Sending Bulk mails/SMS to Anyone. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Investment/Trading in securities Market is subject to market risk. This is my personal thoughts on this company and not at all a buy recommendation. Do own due diligence /consult a SEBI registered advisor before any action.

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