Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public Sector Enterprise under Ministry of Power. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards
, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.
REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 20 field units, which are located in most of the States.
The Project Offices in the States coordinate the programmes of REC’s financing with the concerned SEBs/State Power Utilities and facilitate in formulation of schemes, loan sanction and disbursement and implementation of schemes by the concerned SEBs/State Power Utilities.
REC is 15000 Cr MCAP company... One of the best examples of vagaries and tantrums of Mr. Market....
Currently it is quoting at 153 Rs/share.Here is a Gem which is having annual turnover to the tune of 22000 Cr, EPS of 54, PE ratio less than 3, and whopping dividend yield of 6.6%...
In July 2014, scrip had hit peak of 370 rs per share...It again claimed 370 mark in March 2015.
Thanks to recent market correction, the scrip has again come back to attractive levels of 150 levels !!!!
Recommendation: Patient investors are advised to accumulate this huge dividend yielding GEM on dips..Margin of Safety is VERY HIGH. Huge long term gains are guaranteed here. .