Shares of Rural Electrification Corporation (REC) Ltd. are trading at a record high on Thursday after the company announced quarterly earnings as well as declared a dividend on Wednesday.
The stock gained as much as 7.5% to an intraday record of ₹304. This has taken the stock's gain in 2023 to 155%.
This is the best annual performance that REC has had since it went public in 2009. That year, the stock more than quadrupled, gaining 233%.
Over the last 12 months, the stock has nearly tripled, gaining 192%.
Shares have gained in four out of the last five trading sessions. The Relative Strength Index (RSI) of the stock is now at 63. A reading above 70 on the RSI means that the stock has entered "overbought" territory.
The state-run company reported its September quarter results on Wednesday, where its Net Interest Income declined by 3.4% from last year to ₹3,823 crore, while its net profit increased by 38% year-on-year to ₹3,773 crore. Gross NPA for the quarter stood at 2.14% from 3.21% on a sequential basis.
REC's board also approved a second-interim dividend of ₹3.5 per share, taking the total dividend declared so far in financial year 2024 to ₹6.5 per share.
In August last year, the company had declared a bonus issue worth 1:3, rewarding shareholders with one bonus share for every three held.
The government currently holds a 52.63% stake in REC, and based on their current shareholding, it would receive a dividend payout of ₹415 crore.
First Published: Nov 2, 2023 10:24 AM IST
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