REC Ltd (formerly Rural Electrification Corporation Limited) is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India. It is a leading infrastructure finance company focused on the entire power sector value chain—generation (thermal, hydro, solar, wind), transmission, distribution, and recently, metro, roads, and port infrastructure. With a dominant market share in power financing and a near-zero NPA portfolio, REC has emerged as a key enabler of India’s energy transition and infrastructure push. After reporting strong profit growth and maintaining a high dividend payout, the stock remains a compelling PSU pick for conservative investors. This article provides a data-backed outlook on the REC Ltd share price target 2026–2030.
REC Ltd: Company Overview
- Founded: 1969
- Headquarters: New Delhi
- Key Segments: Power Sector Financing (90%+), Infrastructure & Logistics (new vertical)
- Strategic Role: Finances over 50% of India’s power projects; key partner in Green Energy Corridors and DISCOM reforms
- Ownership: 52.63% held by the Government of India → Yes, it is a government company
REC benefits from sovereign backing, long-term lending visibility, and policy tailwinds from India’s $100B+ power sector capex plan over the next decade.
REC Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹374.50 |
| Market Capitalization | ₹98,798.56 Cr |
| No. of Shares Outstanding | 263.32 Cr |
| 52-Week High / Low | ₹654 / ₹357 |
| P/E Ratio (TTM) | 5.76 |
| P/B Ratio | 1.19 |
| EPS (TTM) | ₹65.10 |
| Book Value (TTM) | ₹314.21 |
| ROE | 21.63% |
| ROCE | 9.92% |
| Dividend Yield | 4.77% |
| Face Value | ₹10 |
| Operating Revenue | ₹55,911.12 Cr |
| Net Profit | ₹15,713.21 Cr |
| Sales Growth (YoY) | 18.59% |
| Profit Growth (YoY) | 12.08% |
| Promoter Holding | 52.63% |
REC Ltd Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹400 – ₹440 |
| 2027 | ₹425 – ₹475 |
| 2028 | ₹450 – ₹510 |
| 2029 | ₹475 – ₹550 |
| 2030 | ₹500 – ₹590 |
REC Ltd Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹400 | ₹440 |
REC reported 12.08% YoY profit growth and 18.59% sales growth in FY2025, driven by higher disbursements to renewable and transmission projects. Trading at a P/E of just 5.76x and P/B of 1.19x, the stock appears undervalued relative to its 21.6% ROE and 4.77% dividend yield. A 2026 target of ₹400–₹440 assumes continued policy support and stable asset quality.
REC Ltd Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹425 | ₹475 |
India’s power sector capex is projected to exceed ₹15 lakh Cr by 2030, with REC as a key financier. If earnings grow at a 12–15% CAGR and the dividend payout remains near 30%, investor interest could rise. Assuming EPS reaches ₹70–₹74 by FY27 and P/E expands to 6–6.5x, the 2027 range of ₹425–₹475 is realistic.
REC Ltd Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹450 | ₹510 |
By 2028, benefits from green energy financing, DISCOM turnaround schemes, and infrastructure diversification should reflect in profitability. While ROCE (9.92%) remains modest due to the NBFC model, capital efficiency is improving. A P/E of 6–6.5x on projected EPS (~₹72–₹78) supports the ₹450–₹510 band.
REC Ltd Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹475 | ₹550 |
Long-term tailwinds include India’s net-zero 2070 roadmap, solar-wind hybrid push, and grid modernization. Risks include interest rate volatility and state DISCOM repayment delays. Using a P/E of 6.5–7x on FY29 EPS (~₹73–₹79), the 2029 target is ₹475–₹550.
REC Ltd Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹500 | ₹590 |
Over a five-year horizon, REC’s value lies in its irreplaceable national role—not explosive growth. A terminal P/E of 7–7.5x on FY30 EPS (~₹74–₹79) justifies the ₹500–₹590 range.
REC Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (GOI) | 52.63% |
| Foreign Institutional Investors (FII) | 16.46% |
| Domestic Institutional Investors (DII) | 16.27% |
| Public & Retail | 14.64% |
| Others | 0.00% |
High promoter holding ensures policy alignment, while rising institutional interest reflects global confidence in India’s power story.
REC Ltd: Strengths vs Risks
Strengths:
- Consistent profitability: 12% YoY profit growth, 21.6% ROE
- Strong dividend yield (4.77%) with ~30% payout ratio
- Sovereign backing and strategic role in national infrastructure
- Trading below book value (P/B: 1.19x)—rare for profitable PSU
Risks:
- Modest ROCE (9.92%) limits capital efficiency appeal
- Exposure to the state DISCOM credit risk
- Interest rate sensitivity impacts NIM stability
- P/B of 1.19x leaves little room for multiple expansion
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Low to Moderate |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Lower than market average (PSU financial stock) |
| Dividend/Income Potential | Yes (4.77% yield + consistent payouts) |
| Best For | Conservative investors seeking PSU exposure with income and safety |
Final Verdict
REC Ltd combines strategic national importance, exceptional return ratios, and shareholder-friendly dividends. While not a high-growth story, it offers defensive value with steady compounding potential. Our REC Ltd share price target 2026–2030 (₹400 to ₹590) reflects cautious optimism—rooted in infrastructure moat, policy tailwinds, and income, not speculation.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – REC Ltd Consolidated Page (FY2025 + TTM)
- Finology Ticker – RECLTD Financial Ratios & Valuation
- REC Investor Presentation (Q3 FY26, Jan 2026)
- BSE India – Annual Report FY2025
- Ministry of Power – National Electricity Plan 2023
