The broader markets continue their rally for the 6th straight session, with the benchmark Nifty 50 index rising to a new all-time high of 22,806, by 12:33 PM IST. As large-cap stocks come on investors’ radar, they should also focus on REC (NS:RECM) Limited.
It is a specialized finance company that primarily caters to the power sector in India and has a market capitalization of INR 1,44,024 crore, making it the 58th largest NSE-listed stock. It is also a Maharatna company and comes under the administration of Ministry of Power, Government of India.
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As per the latest shareholding pattern, FIIs hold a decent 19.92% stake in the company while mutual funds have a 9.82% interest, which is the highest since December 2022, at least.
The company also impressed investors on the financial front in FY24, reporting a record high revenue and net income of INR 47,571.23 crore and INR 14,145.46 crore, respectively. This translated into a profit margin of 29.74%, quite impressive for a large-cap business.
But that’s not all. This stellar company is still available at a lucrative valuation. After its Q4 FY24 earnings, the fair value of the stock has been revised to INR 654.55, which is the highest revision so far. This depicts an upside potential of 21.5% from the CMP of INR 538.
Fair value is simply the mean of all intrinsic values derived from various financial models. This helps in arriving at a more realistic and error-free value. And the icing on the cake? Everything is done automatically at the backend via powerful algorithms so that investors do not need to dive into the intricacies of financial modeling.
Another parameter of a portfolio stock is the financial health check score. If this score is 3 or above (the higher the better) investors can classify the counter to be a healthy one. In this case, InvestingPro’s health check has given it a rating of 3 out of 5, making it a no-brainer for long-term.
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Also Read: Unlocking Investment Success: The Power of Cash-Rich Companies with InvestingPro+
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