REC Limited’s stock surged 2% after Macquarie reiterated an ‘outperform’ rating, setting a bullish target price of ₹700, implying a 74% upside from its current market price of ₹401.90. The brokerage firm expects REC to maintain a 15% annual growth rate, with its loan book projected to reach ₹10 lakh crore by 2030.
A significant 30% of REC’s loan book will be allocated to renewable energy projects, while 50-55% will support power generation and distribution. The remaining funds will be directed towards logistics and infrastructure. Over the past two years, REC has signed ₹3.98 lakh crore worth of MOUs, with ₹1.9 lakh crore already sanctioned. The rest is expected to be approved by 2025-26, driving strong growth prospects.
The company has also sanctioned 3 crore smart meters, with an additional 4 crore in the pipeline. This aligns with India’s push for power sector modernization. Macquarie predicts that from 2026, power distribution companies (discoms) will see financial improvements, further strengthening REC’s business outlook.
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