Honestly, if you've been watching the Indian markets lately, the REC Ltd stock price has probably given you a bit of a headache. One day it’s soaring, the next it’s taking a breather, and everyone on social media seems to have a different opinion. But look, if we’re being real, this isn't just another PSU stock. It’s basically the backbone of India’s power transition.
As of January 13, 2026, the stock is trading around ₹363.60. It’s down a little today, about 2%, but don't let the daily noise distract you. Just a week ago, we saw a massive rally where REC and its peer PFC (Power Finance Corporation) staged a huge comeback.
What’s actually moving the REC Ltd stock price?
You’ve gotta look at the numbers. They don’t lie, even if they’re kinda boring. In the last quarter (Q2 FY26), REC posted a standalone net profit of ₹4,425.86 crore. That’s solid. But there was a weird hiccup—early loan repayments.
Basically, about ₹49,000 crore was paid back early, mostly from big projects like the Kaleshwaram Irrigation Project in Telangana. When people pay back loans early, the "loan book" growth looks smaller. It dropped to about 6.6%. Normally, that would freak investors out. But the management is still sticking to their 11-12% growth target for the full year. They’re aiming for a ₹10 lakh crore loan book by 2030. That is a massive ambition.
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The Dividend Game: Why people love this stock
If you’re into passive income, REC is sorta like that reliable friend who always shows up. The dividend yield is sitting around 4.8% to 5.3% depending on when you check the ticker.
In October 2025, they handed out ₹4.60 per share. Before that, it was another ₹4.60 in August. They literally pay you to wait. If you’re holding this in your portfolio, those payouts add up, especially when the market gets volatile. It cushions the fall.
REC Ltd Stock Price: The "Green" Pivot
Here is the thing most people forget. REC isn’t just about old-school coal plants anymore. They are pivoting hard toward renewables. Their renewable energy loan book grew by 15% year-on-year recently. We're talking solar, wind, and even pumped storage projects.
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They’ve financed projects with a total capacity of over 61,400 MW. That’s enough to power a small country. This shift is crucial because the "ESG" (Environmental, Social, and Governance) crowd is finally starting to take notice. They even won a SKOCH Silver Award for 'Corporate Net Zero Transition' earlier this year.
Is it overvalued or a bargain?
Let’s talk valuation. The P/E ratio is currently around 5.6x. Compare that to the broader market where some tech stocks are trading at 50x or 60x. It feels cheap, right?
Analysts at ICICI Securities have put out a target of ₹600, while some others are more conservative, hovering around the ₹515 mark. There’s a huge gap between the current price and those targets. Why? Because the market is still worried about PSU (Public Sector Undertaking) risks and interest rate fluctuations.
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- The Upside: Strong government backing, massive infrastructure demand, and a fat dividend.
- The Downside: Regulatory changes or a sudden slowdown in power demand (unlikely, but possible).
- The X-Factor: How fast they can scale their "Maharatna" status into bigger global borrowings.
What should you actually do?
If you're looking at the REC Ltd stock price today, don't just stare at the red or green candle. Look at the 2030 vision. If they actually hit that ₹10 lakh crore loan book, the current price might look like a steal in five years.
But keep in mind, this isn't a "get rich quick" meme stock. It’s a slow, steady, compounding machine.
Actionable Insights for Investors:
- Check the Q3 Results: Keep an eye out for the next earnings report in early 2026. If loan growth bounces back as management promised, expect the stock to react.
- Watch the Dividend Dates: The next big ex-dividend date is expected around February 16, 2026. If you want that payout, you need to be in before then.
- Peer Comparison: Always look at PFC alongside REC. They move like twins. If one is lagging way behind the other, there might be an arbitrage opportunity.
- Monitor Renewable Policy: Any new government subsidies for solar or green hydrogen will directly benefit REC’s order book.
Don't ignore the technicals either. The stock recently showed a 14-day moving average crossover. Historically, that’s been a buy signal that leads to a 3% gain within a week. Not a guarantee, obviously, but a nice bit of data to have in your back pocket.
Keep your position sizes reasonable. PSUs are great until they aren't, so don't bet the whole house on one ticker. But for a mix of growth and income? REC is a tough one to ignore.
Next Steps:
- Verify the ex-dividend date for February 2026 on the NSE/BSE official websites to ensure your eligibility for the next payout.
- Review your portfolio's exposure to the power sector; many advisors suggest capping individual sector exposure at 10-15% to manage risk.
- Compare the P/B ratio of REC (currently ~1.24) with IRFC and PFC to see which infrastructure financier offers the best "value for money" at current levels.