Macquarie has initiated an outperform rating on REC Limited, setting a target price of ₹660, which implies a potential upside of 28% from the current market price (CMP) of ₹514.85. The brokerage highlights REC’s position to benefit from favorable cyclical conditions in the power financing sector.
Macquarie notes that recent regulatory reforms addressing power shortages have reduced credit risk and boosted growth momentum for power financiers like REC. Despite the recent rally in REC’s stock, Macquarie expects further rerating driven by asset resolutions, lower slippages, and an increasing renewables mix.
The brokerage also believes that current valuations do not fully reflect the reduced credit risk compared to previous cycles, making REC an attractive investment opportunity.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
