POSITIONAL TRADING: REC LTD SHARE PRICE

So, today let’s have a complete understanding of REC ltd share price.

BUSINESS ANALYSIS OF REC LTD SHARE PRICE

REC ltd was established in 1969.

REC ltd has emerged as a leader in providing financial assistance to the power sector in all segments such as Generation, Transmission or Distribution.

This company is under the Ministry of Power.

It also has the highest credit ratings from CRISIL, ICRA, IRRPL and CARE.

REC ltd share has a net worth of over ₹ 45,000 Cr.

The company has launched Saubhagya (Pradhanmantri Sahaj Bijli Har Ghar Yojana) and DDUGJY (Deendayal Upadhyaya Gram Jyoti Yojana), the schemes which aim at providing 24X7 sustainable and affordable powers to all households in the country.

REC ltd share has 22 state offices all over India.

This company provides different Financial products which are as follows:

1.    Long term loan.

2.    Medium term loan.

3.    Short term loan.

4.    Debt refinancing.

5.    Equity financing.

6.    Financing of equipment manufacturing for the Power sector.

7.    Financing of coal mines.

8.    Policy For Funding Against Regulatory Assets (Excluding Return On Equity Component) Of Power Utilities.

Now, coming to the financials of the REC ltd share price.

FINANCIAL KEY METRICS

The Market Capitalization of REC ltd share is ₹ 29,938 Cr

The REC ltd share has a price to earnings ratio of 3.40 which is slightly lesser than the industry price to earnings ratio of 4.67.

The return on capital employed of the REC ltd share is 9.28% which is satisfactory and shows that the company is providing decent returns on the capital invested in it.

The return on equity of REC ltd share is 21.2% showcasing the company’s strong return on the investment done by their investors.

The debt to equity ratio of REC ltd share is 7.53 which is high but being a NBFC their business demands borrowing of the money.

FINANCIAL ANALYSIS OF REC LTD SHARE PRICE

For the quarter ended 30-06-2021, REC ltd share reported a sales of Rs 9,632 Cr.

The sales of the company is up by 6.90% from last quarter sales of Rs 8,967 Cr.

The net profit of REC ltd share is Rs 2,269 Cr in the latest quarter ended 30-06-2021.        

The earning per share of the company is Rs 11.49.

SHARE HOLDING SYNOPSIS

PROMOTERS – 52.63%.

FIIs – 26.15%.

DIIs – 12.51%.

PUBLIC – 8.71%.

This is a brief overview of the financials of the REC ltd share which shows the dominance in their respective market.

Now, let’s deep dive into the technical of REC ltd share.

CHART PATTERN ANALYSIS   

If we take a closer look at the chart in a daily time frame, there is a formation of a complex reverse head and shoulder pattern.

For REC ltd share there is 1 target as stated in the above image.

REC ltd share price is trading in a channel and the share has given a breakout 2 times which indicates the zeal it has to move in an uptrend.

The REC ltd share price on 16^th August 2021 is Rs 151 which would definitely change in the upcoming future. 

MOVING AVERAGE 

For REC ltd share analysis, we are taking 9 days and 21 days moving average. 

In the history of REC ltd share price, whenever the 9 days moving average crosses the 21 days moving average there is a change in the trend of the share.

The 9 days and 21 days moving average are trading quite near to each other so once the 9 days moving average bounces from the psychological support of 21 days moving average, we’ll be able to see a massive uptrend.

9 days moving average is highlighted by red line and the blue line indicates 21 days moving average.

SUPER TREND

When we take a closer look at the daily chart, the Super trend is suggesting a buying signal.

Lesser the timeframe more the number of signals and faster buy or sell recommendations are attained through super trend indicators.

This is the right time to enter REC ltd share to attain maximum profits.

Image source: tradingview.com