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Rural Electrification Corporation Ltd. Stock Valuation

NSE:RECLTD | FINANCIAL INSTITUTION

Share Price vs Book Value

10-year trend comparing market price with book value per share

FY 2015 - FY 2024

Rural Electrification Corporation Ltd. Share Price vs Book Value — What It Means

Book Value Per Share (BVPS) represents the net asset value per share from the balance sheet — what shareholders would theoretically receive per share on liquidation. When Rural Electrification Corporation Ltd.'s share price trades above book value (P/B > 1), the market is pricing in growth, earnings power, or intangible assets beyond what the balance sheet shows. A P/B below 1 may signal undervaluation or fundamental concerns. Compare the gap between share price and BVPS over time to assess whether the stock is trading at a premium or discount.

Market Metrics

Key market metrics for Rural Electrification Corporation Ltd. (RECLTD) listed on NSE. For financial institution sector companies, market capitalization and share price are primary valuation indicators that reflect investor confidence and the bank's franchise value.

Share Price
₹325.65
Jun 3, 2026
Market Cap
₹857.51B
2.63B shares

Stock Valuation Models for Rural Electrification Corporation Ltd. (RECLTD)

We analyze Rural Electrification Corporation Ltd. using multiple valuation models appropriate for FINANCIAL INSTITUTION companies. For FINANCIAL INSTITUTION companies, we use P/E Ratio Analysis, P/B Ratio Valuation, Dividend Discount Model (DDM), and EPS Growth Valuation to estimate the intrinsic value of Rural Electrification Corporation Ltd. stock.

Current PE Ratio & Historical PE Ratio - Rural Electrification Corporation Ltd.

10-year Price-to-Earnings ratio trend

Apr 2015 - Jun 2026

P/E Ratio Analysis

Fairly Valued

Current P/E Ratio

6.08

Jun 03, 2026

5-Year Median P/E

6.54

5-Year Historical Median

Difference

-0.46

7.0%

Analysis: Rural Electrification Corporation Ltd.'s current P/E ratio is within 10% of its 5-year median (7.0% below), suggesting the stock is fairly valued relative to its historical earnings performance.

What Does Rural Electrification Corporation Ltd.'s PE Ratio Tell Investors?

The P/E ratio measures how much investors pay for each rupee of earnings (Share Price / EPS). A higher PE suggests the market expects strong future growth, while a lower PE may indicate undervaluation or slower growth prospects. Compare Rural Electrification Corporation Ltd.'s current PE against its historical median and FINANCIAL INSTITUTION peers to gauge whether the stock is trading at a premium or discount relative to its earnings.

Price-to-Book (P/B) Ratio - Rural Electrification Corporation Ltd.

10-year Price-to-Book ratio trend for bank valuation

Apr 2015 - Jun 2026

P/B Ratio Analysis

Fairly Valued

Current P/B Ratio

1.24

Jun 03, 2026

5-Year Median P/B

1.32

5-Year Historical Median

Difference

-0.08

6.1%

Analysis: Rural Electrification Corporation Ltd.'s current P/B ratio is within 10% of its 5-year median (6.1% below), suggesting the stock is fairly valued relative to its book value.

Why P/B Ratio Matters for Rural Electrification Corporation Ltd.

The P/B ratio (Share Price / Book Value Per Share) is especially important for banks because their assets are primarily financial instruments whose book value closely reflects economic value. A P/B above 1.0 means the market is pricing in franchise value and future earnings beyond net assets. A P/B below 1.0 may signal asset quality concerns or subdued growth expectations. Compare Rural Electrification Corporation Ltd.'s P/B against peer banks and its own historical median for context.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2024