REC, PFC shares jump to 52-week high, set for best month in years

Shares of REC Ltd. and Power Finance Corporation Ltd. have both surged up to 5% each on Thursday, April 16. In the 10 trading sessions in April so far, both these stocks have gained in nine of them.

Both REC and PFC shares are up for the second straight day on Thursday. With this recovery, the market capitalisation of REC is nearing ₹1 lakh crore, while that of PFC crossed the mark of ₹1.5 lakh crore today.

For the month so far, shares of both REC and PFC have risen 22% each. This is turning out to be the best month for PFC since November 2023, while for REC, it is the best month so far since July 2024, which is incidentally the period when most of these PSU stocks had made a top before correcting.

Both REC and PFC have been in the spotlight since the Union Budget, where it was proposed that both the entities be merged to create a mega-financing company. Details or any further clarity on the merger is yet to be seen.

14 analysts have coverage on REC, of which 13 have a "buy" recommendation on the stock, while 15 analysts cover PFC and all of them have a "buy" rating on the stock.

Both REC and PFC were the best performers on the PSE index in 2023, with gains between 200% to 250% that year. REC shares were down nearly 30% in 2025, while PFC were down over 20%, marking their worst annual performance in at least a decade.

Apart from the merger, the other important trigger for both these stocks would be their potential classification as an upper-layer NBFC. The RBI has proposed that government companies also come under this category with an AUM threshold of ₹1 lakh crore. Both REC and PFC have assets in excess of ₹5 lakh crore under management.

Shares of REC are trading 4.7% higher at ₹369.35, and have turned positive for the year, while those of PFC are trading 4.5% higher at ₹465, extending its year-to-date advance to 30%.

Despite this move, shares of PFC are down 20% from their record high level of ₹580, while those of REC are still down 43% from their record high of ₹654 in July 2024.