Stock to Buy: Stock market listed companies are releasing the results for the September quarter. In terms of results, action is also being seen in shares. There may be action in the market due to global signals, but based on the results, selected stocks are showing a strong rally. One such share is that of REC, which has reached a new peak after the strong results of the second quarter. Brokerage has also increased the target by giving bullish rating to the stock.
Will make huge profits in the long term!
Global brokerage firm CLSA has given a buy opinion on REC. Also the target on the stock has been increased. The brokerage has increased the target on the stock from Rs 260 to Rs 340 per share. According to CLSA's latest report, loan growth remained strong due to a huge jump of 133% in REC disbursals. The special thing is that the management of the company has reiterated the guidance of the loan book.
CLSA has increased REC's loan growth estimate from 15% to 19%. Because the management has assured that the margin will be 3.5%. Asset quality has shown improvement in the second quarter. The company's expansion in the infrastructure and renewable segments will support growth. According to the report, REC's ROE is estimated to be 19-20% in the coming 3 years. Let us tell you that after the results, the share touched a new 52-week high on November 2. Its price reached Rs 307.35.
REC Q2 Results
Profit increased from Rs 2729 crore to Rs 3773 crore
NII increased from Rs 3804 crore to Rs 3856 crore
GNPA reduced from 3.28% to 3.14% (QoQ)
NNPA reduced from 0.97% to 0.96% (QoQ)
NIM reduced from 3.73% to 3.45%
.jpg)
Don't Use Spam Words and Any Spam Link.