Can you please evaluate Rural Electrification Corporation Ltd. (RECLTD') on basis on Fundamentals analysis. I had done the same last year and own some shares of same. Since i am sitting on a good profit, my concern is that my evaluation may be wrong this time. I would like to discuss our evaluation just like Jindal Poly. Thanks,
Rural Electrification Corporation Ltd: ₹189.00
Unlike the name advocate, RECL is in financing projects. Finances all type of Power Generation Projects based on Renewable Energy Sources eg: Solar PV, Solar Thermal, Wind, Biomass , Cogeneration, Small Hydro etc. RECL was acting as lead financier in 100 MW Malana-II Hydro Electric Project in H.P., the 1200 MW Teesta Phase-III Hydro Electric Project in Sikkim, the 270 MW phase-I and 270 MW Phase-II coal based thermal power project of Wardha Power Company Pvt. Ltd. in Maharashtra, the 1200 MW Anpara-C Thermal Power Project in Uttar Pradesh and the 1320' MW coal based thermal power project of Thermal Power Tech Corporation (I) Ltd. in Andhra Pradesh.
Potential for generating renewable energy is huge, there is growing realization in the government to harness all available Renewable energy sources, which is now transforming into reality with the increased, Government focus on renewables .Recent initiatives like Mandatory Renewable Purchase Obligations, Revised tariff guidelines, Generation based incentives, Introduction of Renewable Energy Certificates, Solar Mission etc by GOV' in promoting development of renewable energy will improve more opportunity to make power generation and more projects in future. So that is the preface.
RECL seems to be an undervalued stock if the numbers showing in the book is right (there are 4 different values from 4 finance site is a major Glitch). And it will also face all hurdle the GOV' & finance sector will have in common. Currently it looks like it is trading at 6 PE, compare to its peers like Bajaj Fin Ser etc is near 30 PE. The company annual report submitted to exchange is matching that. The standalone numbers are good and almost same as consolidated results. Latest results are poor. Still I believe that the stock is worth' around 500 with its ROE above 20 and EPS' 31.(The matrix is not to multiple with the highest Industrial PE available.)
A bullish stock move fast after its cosolidation... see the green arrow.
same way a bearish stock also can turn up when its correction is over.
this can move to 55 level, and it the quarter numbers improve it can go further up.
Any idea about this stock? It broke support level and its trending below 10 day moving average. Is it better to average out or exit the counter? 169 seems to be 50% retracement level.
Your valuable opinion please.
I have already given my best study above Both by TA & FA Holding a positive view).
Hence it is advisable to accumulate at support level.
& all my new viewers,
I have used these holidays for a small trip to India, and totally exhausted my energy level,
needed a few time to update and refresh myself to give a strong prophecy about Nifty. :D
see you all soon.
Even i believe this stock should be valued at around 20 PE atleast 30 is also a possibility.
This company has the best NPA number across all NBFC and Pvt Banks (not considering Public Banks) .
ROE of around 21
Dividend yield of above 5%
And still trading around 6PE so dirt cheap.
Few days ago this stock is included in MSCI index, hence will attack lots of Passive Institution investors.
Thanks for your evaluation i believe this will surely take support around 175 max and will be ready for a big Up Run.
keep a positive out look. you are always welcome.