Tuesday, November 17, 2009

Buy REC

REC has consistently delivered healthy core performance with strong loan growth coupled with high NIMs and improved asset quality. A strong sanction pipeline of nearly Rs 80,000 crore built over the last few years provides strong visibility on its disbursement growth outlook for the coming years. REC has also received approval from GoI for its Follow-on Public Offer (FPO).

“GoI will divest 5% of its stake and 15% fresh equity dilution which will further provide fillip to the stock. Huge demand – supply gap in power is bound to result in a continuous demand for rural electrification projects. With decades of experience and expertise, REC is in a strong position to capture this forthcoming boom,” says Kapur.

Source : et