**REC Stock Downgraded to ‘Sell’ by MarketsMOJO**
On December 16, 2024, MarketsMOJO downgraded the stock call on REC, a large-cap player in the finance and non-banking financial company (NBFC) sector, to ‘Sell’. This decision follows a report of flat results for the quarter ending September 2024, alongside a significant operating cash flow decline, recorded at Rs -57,722.65 crore, marking the lowest in recent times.
The stock is currently positioned in a mildly bearish range, a shift from its previously mildly bullish status on December 3, 2024. Since that date, it has generated returns of 3.66%. A notable technical indicator, the KST, has remained bearish since December 3, 2024.
Despite these challenges, REC maintains strong long-term fundamental strength, with an average return on equity (ROE) of 17.72%. The stock is trading at a premium compared to its historical valuations, with a price-to-book value of 2. Institutional holdings stand at 35.53%, reflecting a robust analysis capability among these investors. Over the past year, REC has delivered a return of 29.60%, with profits increasing by 16.9%.
