Macquarie has reiterated an ‘outperform’ rating on REC Limited, setting a target price of ₹700, implying a 74% upside from the current market price of ₹401.90. The brokerage expects 15% annual growth, with REC’s loan book projected to reach ₹10 lakh crore by 2030.
Of this, 30% will be directed towards renewable projects, while 50-55% will cater to power generation and distribution, with the remaining funds supporting logistics and infrastructure. REC has already signed ₹3.98 lakh crore worth of MOUs in the past two years, of which ₹1.9 lakh crore has been sanctioned, with the rest expected to be sanctioned by 2025-26, driving significant growth.
Additionally, REC has already sanctioned 3 crore smart meters, with another 4 crore in the pipeline. Macquarie also noted that from 2026, the financial position of power distribution companies (discoms) will improve, further supporting the company’s outlook.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research before making any investment decisions.