REC Ltd Attains Coveted Position as India’s 100th Most Valuable Company, Delivering Remarkable Returns
In a significant achievement, REC Ltd, a prominent government-owned enterprise, has soared to claim the esteemed status of being India’s 100th most valuable company. This triumph was marked by a remarkable surge of 5.62% in the company’s shares on Thursday, the 17th of August. The soaring momentum led the shares to reach an impressive new 52-week pinnacle at Rs 236.15, consequently elevating REC Ltd’s market valuation to a substantial Rs 61,933.43 crore. As a result, it secured the 100th position in the list of India’s most valuable companies, surpassing the market valuation of Indian Overseas Bank, which stands at Rs 60,525 crore.
REC Ltd’s Growth Trajectory and Financial Outlook
During a conference call, REC Ltd outlined its ambitions, projecting the accomplishment of zero net NPA by FY2025. This forward-looking vision, coupled with optimistic comments about the business, significantly influenced the upward trajectory of the company’s shares on Thursday.
The company revealed that it has successfully disbursed loans worth Rs 53,000 crore during the ongoing financial year 2023-24. Encouragingly, REC Ltd aspires to surpass this feat by disbursing a total of Rs 1.5 lakh crore in FY24, marking an impressive 18% surge from the previous fiscal year. In an environmentally conscious move, the company also envisions its renewable portfolio contributing to 30% of its assets under management (AUM), translating to a surge from $3.6 billion to $45 billion.
Future Prospects and Financial Goals
REC Ltd aims to achieve a Net Interest Margin (NIM) of 3.5% by the conclusion of this financial year, while expecting its yield to range between 9.5% and 9.8%. Remarkably, the company has set an ambitious target of attaining zero net NPA by the culmination of the next financial year in 2025. For the ongoing year, nine accounts valued at $1 billion are anticipated to be resolved, and another 10 accounts are poised for resolution in FY2025.
Exceptional Returns and Performance
Noteworthy performance marks REC Ltd’s journey, with shares surging approximately 47.22% within the last month. The past six months have been particularly fruitful for investors, as the stock has bestowed multibagger returns of an impressive 107.57%. Over the course of the previous year, REC Ltd shares have surged by 123.52%, underscoring the company’s enduring growth potential and financial prowess.
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