Zero impact of demonetization on this NBFC:

_REC Ltd_: MOST UNDERVALUED

*Q2 NP rises 23.3% QoQ*

                H1.     Q2.  

EpsRs.16.06.   8.87. 

_FY17Eeps Rs 34_

PERatio 3.75 *Lowest amongst all NBFCs*

Book Value Rs 161

_Only NBFC avlbl @ 0.80 PricexBook as against 3-6 times PricexBook of NBFCs like LIC, IBHOUSING etc_

Due to huge emphasis on power sector by NDA govt, biz and prospects of REC will continue to EXPAND. Valuation of recession proof REC to expand whereas valuation of NBFCs in housing/retail finance to shrink

*TP Rs 139-142 January Expiry*

_HDFC Sec has given TP Rs 200 ( 2017)_

Our TP Rs 225 in 2017