RECLTD

Fundamental View- REC Limited, a Government of India Navratna company, is fundamentally strong and plays a critical role in financing power sector projects like generation, transmission, and distribution, along with growing exposure to non-power infrastructure such as roads, railways, ports, and airports. The company posted solid financials for FY24 with revenue of ₹47,210 crore, net profit of ₹14,019 crore (up 28% YoY), and a robust loan book of ₹5.15 lakh crore. Asset quality remains healthy with Gross NPA at just 1.01% and Net NPA at 0.35%, backed by strong recovery efforts. REC enjoys a high Capital Adequacy Ratio of 25.7% and consistently offers attractive dividends to shareholders. Technical View- As seen on the daily chart, the stock has been in a continuous downtrend, making lower highs. On 27th June, the stock made a high of ₹407.65 and has been declining since then. However, a potential double bottom formation is visible on the daily chart, indicating signs of reversal. Today, the stock opened at ₹394.30, made a high of ₹397.10, a low of ₹390.50, and finally closed at ₹393.65. Earlier, on 23rd June, the stock had made a low of ₹388.60, after which a sharp buying rally was observed, with the stock reaching a high of ₹409.65 on 27th June. Technically, the MACD and RSI are showing positive strength, suggesting the possibility of a trend reversal. In the short term, a small dip may occur, but fundamentally and technically, the stock looks positive for the long term. A buy-on-dip strategy can be applied with a stop loss at ₹385.00, and in an uptrend, the stock has the potential to touch ₹425.00 levels in the coming days. Warning- ***** ***** *****