Maharatna PSU stock in focus: The brokerages, Morgan Stanley and Emkay, are bullish on REC Limited post its Q4 results. They have reviewed the Maharatna PSU stock and given their ratings along with reasons. Let’s learn why brokerages are bullish on the Maharatna PSU stock, but before that, let’s quickly go through the company’s Q4 results.
REC Limited has declared its fourth quarter earnings on April 28. It posted a 22 per cent fall in consolidated net profit at Rs 3,375.08 crore during the quarter ended March 2026, mainly on account of lower interest income. It registered a net profit of Rs 4,309.98 crore in the year-ago period.
The board has also declared a final dividend of Rs 1.55 per equity share each for the financial year 2025-26, subject to approval of shareholders in the ensuing Annual General Meeting (AGM).
Maharatna PSU stock in focus: Brokerages bullish on REC – Here’s why
The brokerage firm, Morgan Stanley, maintains an overweight rating on this Maharatna PSU stock with a target price of Rs 445.
The firm further highlighted that the company experienced a weak quarter, with Profit After Tax (PAT) falling 21 per cent year-on-year, missing estimates by 17-22 per cent.
Key financial metrics were impacted by lower net interest margins (NIM) of 3.55 per cent and muted asset under management (AUM) growth of 3 per cent.
Despite lower earnings, the report notes healthy underlying asset quality trends and attractive valuations at 6x FY27 P/E.
The company’s disbursements declined by 9 per cent on a quarter-over-quarter basis.
The brokerage firm, Emkay, maintains a buy rating on REC Limited with a target price of Rs 440, implying an upside of approximately 17 per cent.
