REC Moat Analysis: Score & Risks
REC Ltd.
A first-pass moat teardown of REC Ltd., built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.
First-pass narrow read — primary edge in Cost Advantage. Provisional, single-pass evidence.
REC Ltd. scores 5.49 on MoatSCORE 6.0 — a narrow moat in Infra Finance. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.
Seven dimensions of moat
Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.
“REC enjoys international credit rating at par with sovereign ratings of “Baa3” and “BBB-” from international credit rating agencies viz. Moody's and FITCH respectively.”
“The Government of India has designated our Company as the Nodal Agency for the Saubhagya scheme”
“your Company finances entire gamut of distribution projects broadly with the objectives of system improvement and augmentation, loss reduction measures, IT based system implementation, consumer satisfaction etc.”
“with the slight increase in our cost of fund, we have raised our lending rates, but not to that extent. So, somewhat the NIMs have moderate.”
“There also, we see a huge potential or REC, we'll be able to share at 30% to 40% of the coal base capacity, addition capital would be coming in the next 8 years”
“hundred percent payment security mechanism available to us so that none of this new non power infrastructure and logistics become NPA in future”
D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.
The barrier gate — first-pass
Effective barrier 6 — at or above 6, consistent with a narrow read. First-pass estimate.
Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.
The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.
Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.
Where this note fits. This company is one of 509 Indian companies we have scored for moat durability — 370 narrow, 126 narrow-trending-wide, none wide. Every score, dimension by dimension, is free in the Moat Screener.
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