Wednesday, May 18, 2016

Rural Electrification Corporation Ltd @ 162.05

1. Rural Electrification Corporation Ltd is a 10 rupee face value PSU stock.

Rural Electrification Corporation Ltd is a BSE group A company and also included in S&P BSE100 index, so this is a blue chip company which available at undervalued price @ 162.05.
REC is a govt of India enterprises visit company website here:-
2. Year high of Rural Electrification Corporation Ltd is 311.10 year low was 152.50 and stock traded at 162.05
Year high/ low ratio of REC is 2.04 but year high 311.10 date was 22 May 2015 so after 22 May I think this ratio may be stable below 2. 
If you feel uneasy when your stock price falls below your buying price, then I suggest to buying REC stock after 27 May 2016.
 Because on 27 May 2016 REC declare his results and if the result is good and year high/low ratio stable below two, then this stock is best to buy.  
If you are new reader of my blog and not familiar with my research terms, then please see my research terms at this link
3. Promoters of Rural Electrification Corporation Ltd hold 60.64% Promoters holding is good with nil pledged stock ( REC is a PSU Stock so govt of India is promoter of this stock)
  See full list of public shareholding including FII and DII here:-
4.Rural Electrification Corporation Ltd REC is a good dividend paying PSU stock and pay dividend twice in a year see past dividedn history of REC here:-
EX DatePurpose
17/02/2016Interim Dividend 12.00
09/09/2015Final Dividend 2.70
18/02/2015Interim Dividend 8.00
02/09/2014Final Dividend 1.75
20/02/2014Interim Dividend 7.75
5. Base price of Rural Electrification Corporation Ltd is 249.65 So REC is traded 65% below from his base price so I think now this stock is reasonably undervalued for included in my long term multibagger buy list
6. No any bonus issue right issue and bulk deals is recorded  in last 2 year.
7. Rural Electrification Corporation Ltd net sale per share of FY 14-15 is 204.86.
8. Good net sale per share 204.86 is also suggest that this stock is a value buy
9. Book value of Rural Electrification Corporation Ltd is 251.53 So in book value term this stock is also a value buy at CMP.
8. Overall I think REC may achieve his target 211 for a long term view over 1 year ,read my book for more detail about how to calculate fundamental target of a stock? .
Download last 3 year closing price data with graph from this link:-
9. 200 DMA of Rural Electrification Corporation Ltd is 215.39 So at CMP 162.50 REC is traded below his 30 DAy, 50 Day' 150 Day and  200 Day DMA see these DMA here:- 
Simple Moving Averages
DAYSBSENSE
30167.41167.33
50167.19167.13
150200.26200.21
200215.39215.34
So I think this time REC is not usefull for short term trading for example I publish PTC india stock on 23 january 2016 and recommneded to buy it @60.35 this time 200 DMA of PTC india is 65.85 So I warn my followers that they do not buy this stock for trading purpose
Read here:-
 but now PTC india traded over his all DMA so on thrusday I publish PTC India tip on CNBC pro advisory championship website for trading purpose.
Visit my calls on CNBC pro advisory championship here:-
http://www.advisorymandi.com/advisor/12047/5/2/1
Overall I think REC may achieve his fundamental target over 211 for a long term view (over 1 year) ,read my book for more detail about how to calculate fundamental target of a stock? .
10. My recent updates :- Buy MTNL
11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please  read full disclaimer at the bottom of my blog.

12.Discloser:- I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Rural Electrification Corporation Ltd so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Rural Electrification Corporation Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not  received any type of compensation from the subject company(Rural Electrification Corporation Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Rural Electrification Corporation Ltd). 6. I have been not engaged in market making activity for the subject company (Rural Electrification Corporation Ltd).

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disclaimer:-Trading in stock market is very risky. This website is not perfect. This is not an advisory service to buy or sell. The contents of “maheshkaushik.com” are only for educational purposes. No liability is accepted for any content in “www.maheshkaushik.com”. Subject to pindwara(india) jurisdiction only. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice.. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, author of this website is not a trend technical analyst.