REC recovers on bargain hunting

Rural Electrification Corporation rose 3.84% to Rs 210.90 at 14:25 IST on BSE, with the stock recovering on bargain hunting after 5-day 7.89% slide.

Meanwhile, the S&P BSE Sensex was up 60.59 points or 0.29% at 20,753.83.

On BSE, so far 1.77 lakh shares were traded in the counter as against average daily volume of 1.59 lakh shares in the past one quarter.

The stock hit a high of Rs 213.40 and a low of Rs 204.20 so far during the day. The stock had hit a 52-week high of Rs 266.10 on 7 January 2013. The stock had hit a 52-week low of Rs 146.15 on 5 August 2013.

The stock had underperformed the market over the past one month till 7 January 2014, declining 8.33% compared with the Sensex's 1.44% fall. The scrip had, however, outperformed the market in past one quarter, surging 5.32% as against Sensex's 4.01% rise.

The large-cap company has equity capital of Rs 987.46 crore. Face value per share is Rs 10.

Shares of Rural Electrification Corporation (REC) had declined 7.89% in five trading sessions to settle at Rs 203.10 on Tuesday, 7 January 2014 from a recent high of Rs 220.50 on 31 December 2013.

REC's net profit rose 16.4% to Rs 1110.67 crore on 27.5% growth in total income to Rs 4224.25 crore in Q2 September 2013 over Q2 September 2012.

REC's main objective is to finance and promote rural electrification projects all over the country. The company provides financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them. The Government of India (GoI) owns 66.8% stake in REC (as per the shareholding pattern as on 30 September 2013).

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