Bonus of 1:3, Dividend of Rs 4.5: Maharatna PSU To Examine Dividend, Gains of 255% In A Year

On Wednesday, April 24, shares of Maharatna Public Sector Undertaking, REC Ltd, surged by 1.11% as the business prepared to review, approve, and propose final dividends in relation to its financial performance. The REC share’s most recent BSE trading price is Rs 440. On April 30, 2024, the Board of Directors will convene for the same purpose. It is valued at Rs 1,15,861.86 crore on the market. Over the last two years, REC shares yielded astounding profits of 356%. Further information is provided below:

REC To Discuss Results, Dividend: According to the company’s April 24, 2024, regulatory filing, “Among other things, the Board of Directors of REC Limited will meet on Tuesday, April 30, 2024, to discuss the following:1. To review and accept the company’s audited financial reports for the quarter and year that ended on March 31, 2024, both standalone and consolidated.

2. To take into account and suggest any final dividends for the fiscal year 2023–2024.”

REC Notifies Subsidiary’s Incorporation: The exchange filing went on to say, “Bhadla-III Power Transmission Limited (CIN: U42202DL2024GOI430036) has been incorporated as REC Power Development & Consultancy Limited’s wholly owned subsidiary, which in turn is a wholly owned subsidiary of REC Limited.” According to the requirements of Section 2(87) of the Companies Act of 2013, the aforementioned firm is also a subsidiary of REC Limited.”

Performance and Return of REC Shares: As of 08/02/2024, the price of REC shares on the BSE was Rs 524.00 per share, and as of 25/04/2023, it was Rs 124.05 per share. The return on REC shares was 2.48% during the previous week, over 5% during the previous three months, over 58% during the previous six months, 255% during the previous year, 363% during the previous three years, and 289% during the previous five years.

REC Technical: The stock has a technical score of 52.7, meaning it is neutral. Technically speaking, stocks scoring more than 70 are regarded as strong, while those scoring less than 35 are deemed weak. An RSI of 46.5 indicates that a stock is overbought; a stock that is below 30 is oversold. MFI is 44.6; anything under 30 is regarded as oversold, and anything above 70 is overbought. In the March 2024 quarter, holdings by FIIs and FPI fell from 20.60% to 19.91%. According to Trendlyne statistics, the number of FII/FPI investors rose from 867 to 921 in the March 2024 quarter.
REC Dividend History: “REC Ltd. has announced 36 dividends since September 8, 2008,” according to Trendlyne statistics. Over the last year, REC has declared an equity dividend of Rs 15.35 per share. With a current share price of Rs 440.00, REC provides a 3.49% dividend yield.

REC Bonus History: Since September 28, 2016, REC has granted two bonuses. According to Trendlyne, REC last announced a bonus in the ratio of 1:3, with an ex-bonus date of August 17, 2022.

REC Financials: For the October–December quarter, the PSU reported an 18% increase in Net interest income (NII) to Rs 4,159 crore. With a 14% increase over the previous year, its net profit for the December 2024 quarter was Rs 3,269.3 crore. Asset quality at the Maharatna improved step-by-step, with gross non-performing assets rising to 2.78% from 3.14% in September. Net NPA was reported at 0.82%, as opposed to 0.96% in the prior quarter. Its quarterly payouts increased by 56% from the previous year to Rs 46,358 crore.

About: The Ministry of Power oversees REC, a Maharatna Central Public Sector Undertaking. It is a top provider of financing for infrastructure. Financing projects throughout the whole value chain of the power industry, including generation, transmission, and distribution, is a part of its business operations. Through its vast network of 22 offices around the nation, it offers financial support to state energy boards, state governments, independent power producers, central and state power utilities, rural electric cooperatives, and private sector utilities.

In order to respond to the urgent needs of the country, REC was established in 1969. It has the best credit ratings from CRISIL, ICRA, IRRPL, and CARE on a domestic level, and it has ratings on an international level comparable to sovereign ratings.

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