# REC (NSE: RECLTD) share analysis

Canonical: https://vestmind.in/stocks/rec  
Source: VestCall by Vestmind, price as of 14 October 2026.

> REC (NSE: RECLTD) was trading at ₹308.85 on 14 October 2026. VestCall scores its business health 73/100 (healthy). On valuation, the price sits in the “Attractive Valuation” zone (₹304.05 – ₹309.31) — below the modelled fair-value range. This is a reading of the evidence, not a buy or sell recommendation.

## Valuation zones

| Zone | Price band | Meaning |
| --- | --- | --- |
| Deeply Discounted | ₹275.28 – ₹304.05 | Furthest below the modelled fair-value range |
| Attractive Valuation (current) | ₹304.05 – ₹309.31 | Below the modelled fair-value range |
| Fairly Valued | ₹309.31 – ₹323.95 | Inside the modelled fair-value range |
| Valuation Premium | ₹323.95 and above | Above the modelled fair-value range |

## The case for and against

- Supports — Capital Allocation 94/100
- Supports — Business Quality 88/100
- Supports — Shareholding Quality 81/100
- Supports — Management Stability 65/100
- Supports — Financial Strength 63/100
- Supports — Growth 60/100

## Key ratios

| Ratio | REC | Sector median |
| --- | --- | --- |
| P/E | 34.85x | — |
| P/B | 0.59x | — |
| P/S | 0.84x | — |
| Return on equity (ROE) | 19.3% | — |
| Return on capital employed (ROCE) | 24.6% | — |
| Operating margin | 34.9% | — |
| Net margin | 27.4% | — |
| Current ratio | 0.95x | — |

## Bull, base and bear case (model outputs, not forecasts)

| Scenario | Modelled CAGR | Weight | Assumption |
| --- | --- | --- | --- |
| Bear | +0.5% | 25% | Growth decelerates to 4.5% and the multiple de-rates toward the cohort's trough. |
| Base | +12.4% | 52% | Earnings compound near the measured 12.4% and the multiple drifts toward its quality-adjusted warranted level. |
| Bull | +20.9% | 23% | Growth holds at 17.4% and the market pays the full premium the measured quality supports. |

## Questions

### Is REC overvalued or undervalued?

At ₹308.85, REC sits in VestCall’s “Attractive Valuation” zone (₹304.05 – ₹309.31): below the modelled fair-value range. Its valuation scores 98/100 (fair) against Unclassified peers. Zones describe where the price sits against modelled value; they are not an instruction to buy or sell.

### Is REC fundamentally strong?

VestCall scores REC’s business health 73/100 (healthy). The strongest measured pillars are capital allocation and business quality. Each pillar is computed from reported financials, and a pillar whose inputs were not reported is excluded rather than scored as zero.

### What is REC’s P/E ratio?

REC trades at a P/E of 34.85x, on VestCall’s latest read. A multiple only means something against the business it buys: the quality-adjusted fair value on this page weighs it against REC’s returns and growth.

### What are the risks of investing in REC?

The review triggers VestCall watches for REC are: return on equity falls below the quality floor (roe below 15%); revenue growth falls below the thesis floor (revenue cagr below 8%); promoter holding drops materially (promoter holding below 49.63%, 3 points under the Mar 2026 filing). A trigger is a named condition that would change the reading, published so the case against the stock is as visible as the case for it.

### Is this a recommendation to buy or sell REC?

No. VestCall states where REC’s price sits against modelled value, what supports the case and what would break it, with every figure sourced. It does not issue buy, sell or hold calls or price targets. Vestmind is not a SEBI-registered investment adviser or research analyst, and nothing on this page is personalised investment advice.

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Vestmind is not a SEBI-registered investment adviser or research analyst. This is research for information, not a recommendation or personalised investment advice.