REC Limited (RECLTD.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+227.4%

₹930.76

vs ₹284.25 price

Levered DCF

-₹6,922.74

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.26

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	5.21×	6.93×	8.57×	2.73×	2.42×	3.09×	3.53×	5×
P/B	1×	1.4×	1.75×	0.52×	0.47×	0.59×	0.5×	0.83×
P/S	1.46×	1.96×	2.57×	0.79×	0.63×	0.74×	0.64×	1.18×
EV / EBITDA	10.49×	30.07×	31.49×	29.53×	28.69×	32.84×	42.63×	33.53×
Gross margin	99.4%	39.1%	36.5%	38.1%	42.6%	38.9%	31.0%	36.0%
Operating margin	98.6%	35.9%	38.1%	36.3%	32.4%	30.7%	25.5%	33.1%
Net margin	27.9%	28.3%	30.0%	29.1%	26.1%	23.8%	18.1%	23.5%
Current ratio	9.65×	190.35×	277.26×	1.17×	3.86×	441.25×	558.94×	295.89×
Debt / equity	6.05×	6.33×	6.42×	6.55×	6.49×	7.53×	8.09×	7.07×
Interest coverage	1.59×	0.59×	0.6×	0.59×	0.56×	0.5×	0.37×	0.52×
Dividend yield	7.2%	5.1%	2.4%	10.3%	9.9%	8.4%	12.4%	8.8%
Payout ratio	37.5%	35.3%	20.2%	27.9%	24.0%	25.9%	43.7%	43.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	19.2%	20.3%	20.4%	19.2%	19.6%	19.1%	14.0%	16.6%
Return on invested capital	7.1%	2.2%	2.2%	13.3%	18.9%	8.0%	5.0%	16.1%
Return on assets	2.5%	2.6%	2.6%	2.4%	2.4%	2.1%	1.4%	1.9%
Free cash flow yield	6.9%	-35.6%	-47.6%	-122.9%	-16.3%	-168.3%	-187.2%	-125.2%
Earnings yield	19.2%	14.4%	11.7%	36.7%	41.3%	32.3%	28.4%	20.0%
Enterprise value	₹6T	₹6.1T	₹5.7T	₹4.1T	₹3.6T	₹3.5T	₹3T	₹2.7T
Net debt / EBITDA	9×	24.61×	24.75×	27.35×	26.74×	30.44×	40.14×	29.98×
Cash conversion cycle (days)	-175	160	189	609	235	254	327	274