REC & PFC Ready to Rally? Morgan Stanley Turns Bullish!

Описание: Morgan Stanley, a global brokerage firm, has initiated coverage on two Indian power sector financing PSUs: REC Ltd. and Power Finance Corporation Ltd. (PFC), with an ‘Overweight’ rating, signaling bullishness on both.

🔹 Price Targets:
• REC: ₹485
• PFC: ₹508

This implies a potential upside of 23% (REC) and 21% (PFC) from current market prices.

🔹 Background:
• In 2023 and early 2024, these stocks witnessed strong investor interest.
• However, in the last 9 months, they have fallen out of favour.
• Over the past 12 months, REC and PFC shares have corrected 24%–35%, whereas Sensex gained 4.7%.

🔹 Morgan Stanley’s Outlook:
• Attractive Risk-Reward both in absolute terms and relative to other NBFCs.
• Expect:
• Loan growth in the low teens (10–13%)
• Return on equity (ROE) in the high teens (16–19%)
• Dividend yield of 3.8% to 4.5% (assuming 30% payout ratio)

🔹 Valuation:
• At 5–6x FY27 estimated P/E, the stocks appear undervalued, pricing in structural concerns.
• Strong asset quality and possible gains from bad loan recoveries.
• Potential to outperform retail NBFCs in coming quarters.

🔹 Key Catalysts:
• Relative financial outperformance vs other NBFCs.
• Better asset quality
• Possibility of loan growth picking up
• Broader PSU rally as a tailwind

🔹 Risks Highlighted:
• Loan growth may slow to single digits
• Rising competition from banks

🔹 Consensus:
• All 13 analysts tracking REC and PFC have a Buy rating.

🔹 2025 YTD Performance:
• REC shares: down 23%
• PFC shares: down 7%
• Still 40% (REC) and 28% (PFC) below their respective all-time highs.

Morgan Stanley has turned bullish on REC & PFC - are you ready to rally? Check out this brokerage report for the latest news and price targets on these stocks! #recshare #pfcshare #brokeragereport #rally


SUBSCRIBE :    / @moneyroots  

Disclaimer:
The content on this YouTube channel is for informational and educational purposes only and should not be considered as financial, investment, or trading advice. We are not SEBI-registered advisors, and all opinions expressed are personal.
Investing and trading in the stock market involve risk, and past performance does not guarantee future results. Always conduct your own research and consult a SEBI-registered financial advisor before making any investment decisions.
This channel does not guarantee the accuracy, completeness, or reliability of any information provided. We are not responsible for any financial losses or decisions made based on the content shared.
This channel may include affiliate links, sponsorships, or partnerships, and we may earn commissions from qualifying purchases or sign-ups.
By watching this channel, you acknowledge and agree to these terms.