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RECNSE:RECLTD -0.61%66 Return-on-Tangible-Equity is 15.87% as of Mar. 2026, which is 24% below its 10-year median of 20.76. GuruFocus rates NSE:RECLTD with a GF Score™ of 66/100 and a GF Value™ of ₹435.51 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 526 Credit Services companies, REC ranks better than 84.22% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. REC's annualized net income for the quarter that ended in Mar. 2026 was ₹135,003 Mil. REC's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹850,524 Mil. Therefore, REC's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.87%.
The historical rank and industry rank for REC's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RECLTD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.04 Med: 20.76 Max: 22.19
Current: 19.82
During the past 13 years, REC's highest Return-on-Tangible-Equity was 22.19%. The lowest was 14.04%. And the median was 20.76%.
NSE:RECLTD's Return-on-Tangible-Equity is ranked better than 84.22% of 526
companies
in the Credit Services industry
Industry Median: 7.03
vs NSE:RECLTD: 19.82
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
REC Return-on-Tangible-Equity Related Terms
REC Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for REC's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:RECLTD vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, REC's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
REC Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, REC's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where REC's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.87% mean?
REC (NSE:RECLTD) has a Return-on-Tangible-Equity of 15.87% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on REC and its competitors. This is 24% below median its historical median of 20.76. Over the past decade, REC's Return-on-Tangible-Equity has ranged from 14.04 to 22.19. According to the industry distribution chart, REC ranks #83 out of 526 companies in the Credit Services industry, placing it in the top 15.8%.
Is REC's Return-on-Tangible-Equity too high?
REC's current Return-on-Tangible-Equity of 15.87% is 24% below median its 10-year median of 20.76. Over the past 10 years, this metric has ranged from a low of 14.04 to a high of 22.19. The Credit Services industry median Return-on-Tangible-Equity is 7.03. REC's value of 15.87% is 125.7% above this industry median. Based on the distribution chart, REC ranks #83 out of 526 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, REC has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REC's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, REC ranks #83 out of 526 companies for Return-on-Tangible-Equity. This places REC in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.03. REC's value of 15.87% is 125.7% above this benchmark. Historically, REC's own Return-on-Tangible-Equity has ranged from 14.04 to 22.19 over the past decade. While the company's 10-year median is 20.76 vs. the industry median of 7.03, REC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.03, based on 526 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REC's current Return-on-Tangible-Equity of 15.87% is 125.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on REC and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REC's current Return-on-Tangible-Equity is 15.87%, which is 24% below median its own 10-year median of 20.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REC stock overvalued right now?
Based on GuruFocus' analysis, REC (NSE:RECLTD) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹435.51, compared to a current price of ₹358.45 — trading 17.7% below its estimated fair value. The current Return-on-Tangible-Equity is 15.87%, which is 24% below median its 10-year median of 20.76 and 125.7% above the Credit Services industry median of 7.03. REC's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For REC (NSE:RECLTD), the current Return-on-Tangible-Equity is 15.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is REC (NSE:RECLTD) Overvalued in 2026?
Based on GuruFocus' analysis, REC stock appears to be undervalued.
The current stock price of ₹358.45 is trading 17.7% below its estimated GF Value™ of ₹435.51.
GuruFocus considers REC to be Modestly Undervalued.
Key valuation signals for NSE:RECLTD:
Return-on-Tangible-Equity: 15.87% (24% below median its 10-year median of 20.76)
GF Value™: ₹435.51 vs. price of ₹358.45 (17.7% below fair value)
Industry Position: 125.7% above the Credit Services median (#83 of 526)
No single metric tells the full story. See the NSE:RECLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REC Ltd is a non-banking financial company operating in India. The company's main objective is to finance and promote power sector projects on the subcontinent. REC provides loan assistance to numerous state power utilities, private sector project developers, central power sector utilities, and state governments. REC investments include power generation, power transmission, power distribution, and other system improvement initiatives. REC is also instrumental in implementing several initiatives spearheaded on behalf of the government of India, including rural electrification. It comprises only one business segment-lending to power, logistic and infrastructure sector. The majority of its revenue derives from long-term financing.
66GF Score
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