India's Power Finance, REC fall after Morgan Stanley downgrade, Street-low price targets

Power Finance

20/08/2026 06:04

** State-owned power finance companies, Power Finance Corp PWFC.NS and REC RECM.NS shares fall about 2.3% each with PWFC sliding to a near five-month low and a three-month low
** Drop after Morgan Stanley downgrades the companies to "equal-weight" from "overweight"
** Cuts PWFC's price target to 410 rupees from 510 rupees; lowest among 15 analysts tracking the stock with an average "buy" rating
** Slashes RECM's PT to 360 rupees from 430 rupees, also a Street-low among 14 analysts with an average "buy" 
** Says PWFC and RECM loan growth has moderated sharply, while system and bank credit to the power sector has accelerated
** Adds growth disconnect for PWFC and RECM has been greater than it estimated and cuts earnings per share estimates for the financial year 2028 and 2029
** PWFC shares are up 2.7% and RECM is down 8% in 2026 so far, according to exchange data

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))