Is REC the Best Stock in Its Sector? A Look at the Numbers

Is REC the best stock in its sector? The stock trades on the NSE at Rs 304 as of 12 October 2026, within its 52-week range of Rs 286.20 to Rs 388.30. REC Ltd, headquartered in Gurugram, is a state-owned non-banking finance company that lends mainly to power sector and other infrastructure projects.

REC sits in the Finance sector, and its 19.17% ROE and 4.93x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector's Industry P/E benchmark.

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About REC

REC Ltd, headquartered in Gurugram, is a state-owned non-banking finance company that lends mainly to power sector and other infrastructure projects. Its lending is concentrated on power and infrastructure. The stock trades about 22 percent below its 52-week high and about 6 percent above its 52-week low. At a market capitalisation of Rs 78,997 Cr, it is tracked as part of the Finance sector on Univest.

Is REC the Best Stock in Its Sector?

REC makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining a 19.17% ROE with a 4.93x P/E against the sector's 17.58x Industry P/E. REC's 4.93x P/E is far below the 17.58x Industry P/E, with a 19.17% ROE, a 0.93 P/B and a 6.18% dividend yield, though a debt to equity ratio of 6.05 shows heavy reliance on borrowing.

Metric	REC
CMP (NSE)	Rs 304.05
52-Week High / Low	Rs 388.30 / Rs 286.20
Market Cap	Rs 78,997 Cr
P/E (TTM) vs Industry P/E	4.93x vs 17.58x
P/B	0.93
ROE	19.17%
EPS (TTM)	Rs 60.90
Dividend Yield	6.18%
Debt to Equity	6.05

Compare REC Against Other Finance Sector Stocks

How REC Compares Against Its Finance Sector Peers

The table below sets REC against 2 other Finance sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.

Company	Market Cap (Rs Cr)	P/E	ROE	Debt to Equity
REC	78,997	4.93	19.17%	6.05
Power Finance Corporation	1,08,243	3.22	18.22%	7.00
Indian Railway Finance Corporation	97,818	13.61	12.35%	7.69
Peer average (2 companies)	-	8.41	15.29%	7.35

Against this peer set, REC's 19.17% ROE is above the 15.29% peer average, and its P/E of 4.93x runs below the peer average of 8.41x. REC's 4.93x P/E is far below the 17.58x Industry P/E, with a 19.17% ROE, a 0.93 P/B and a 6.18% dividend yield, though a debt to equity ratio of 6.05 shows heavy reliance on borrowing.

What Makes REC Worth Watching in Finance

• Deep discount: A 4.93x P/E against a 17.58x Industry P/E sits far below the sector benchmark.
• Income: A dividend yield of 6.18% is high for a large listed company.
• Leverage: A debt to equity ratio of 6.05 is typical of a lender funded mainly by borrowings, so asset quality matters.

REC Valuation: Is It Justified?

REC's 4.93x P/E is far below the 17.58x Industry P/E, with a 19.17% ROE, a 0.93 P/B and a 6.18% dividend yield, though a debt to equity ratio of 6.05 shows heavy reliance on borrowing. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.

Also read – Is Lupin the Best Stock in Its Sector? A Look at the Numbers

Download the Univest iOS App or Univest Android App to track REC and other Finance sector stocks.

How to Track REC Before You Invest

Before deciding whether REC deserves its label as the best stock in its sector for your own portfolio, compare it directly against Finance sector peers using the steps below.

1. Open the Univest Screener and search for REC to view live price, valuation ratios, and peer comparisons within the Finance sector.
2. Compare its P/E, P/B, and ROE against other Finance sector stocks before deciding if the current valuation fits your strategy.
3. Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
4. Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.

Conclusion

REC earns a place in the best stock in its sector conversation on the strength of a 19.17% ROE and a P/E of 4.93x against a 17.58x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.

Is REC the best stock in its sector?

Ans. REC has a 19.17% ROE and trades at 4.93x P/E against a 17.58x Industry P/E, and compares above the peer average ROE of 15.29% in this article's named comparison, so the answer depends on what an investor is prioritising.

What is the current share price of REC?

Ans. REC was trading at Rs 304.05 on the NSE as of 12 October 2026, within its 52-week range of Rs 286.20 to Rs 388.30.

What sector does REC belong to?

Ans. REC is classified under the Finance sector on Univest.

How does REC compare to its sector peers on P/E?

Ans. REC's P/E of 4.93x is below the 8.41x average of the 2 named peers compared in this article.

What is REC's return on equity?

Ans. REC reported a return on equity of 19.17%, which is above the 15.29% average of its named peers in this comparison.

Should I invest in REC based on its sector position?

Ans. REC's sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.

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