REC LIMITED Valuation

RECLTD · Financial Services · Current price ₹355.1

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DocStoX fair value
₹794
low confidence
Current price
₹355
Upside
+123.5%
P/E ratio
5.7x
P/B ratio
1.1x
Verdict
Buy
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Is REC LIMITED undervalued?

DocStoX estimates the fair value of REC LIMITED at ₹794 per share, versus the current market price of ₹355. That puts the stock about +123.5% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 2 independent methods: Excess-return (book value) (₹415), Relative P/E (₹1,804). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹415 (bear) to ₹794 (base) to ₹1,804 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

REC LIMITED trades at a P/E of 5.7x and a P/B of 1.1x, with a dividend yield of 4.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on REC LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.