PSU Alert: After a 200% surge in 2023, shares of REC need to cross this level for its best-ever year

In an interaction with CNBC-TV18 on November 16, Harshvardhan Dole of IIFL said that the outlook for power demand continues to look strong for the next few quarters. He expects financiers and supply chain companies to benefit. PFC & REC, being the largest lenders, are likely to benefit from the same, he said.

Friday's surge has taken REC's Relative Strength Index (RSI) above the mark of 80. A reading above 70 indicates that the stock is in overbought territory. The stock took support at its 50-day Moving Average in late October and has bounced since then.

At its analyst meeting held recently, the company guided to achieve Assets Under Management of ₹10 lakh crore by 2028 at the current growth rate, faster than the earlier target of 2030.

The management also expects a marginal increase in its Cost of Funds in the coming months, but there is no major threat arising on that front.

Renewable Energy is also likely to reach Assets Under Management of ₹3 lakh crore by 2030.

Shares of REC are trading 8.4% higher at ₹379.4. This is the second-best year the stock has had on record since it went public in 2007. The stock needs to cross levels of ₹388 to achieve its best calendar year performance on record.