Shares of Rural Electrification Corporation Ltd. are trading with gains of nearly 7% on Friday and are at another record high.
The stock has tripled in value so far in 2023, gaining 217%. Shares have gained every single month of 2023, barring February, during which they fell by 6%.
REC informed the exchanges on Friday that its disbursements crossed the mark of ₹1 lakh crore in a fiscal year. In comparison, REC's disbursements for the first eight months of financial year 2023 stood at ₹46,075 crore.
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.
(Edited by : Amrita)
First Published: Dec 1, 2023 10:48 AM IST