Investment Idea - Rural Electrification Corporation

After recent rally people are really skeptical about picking stocks as they've seen really huge correction in stock market once after market was making new highs.

Now people use to ask me which stocks to buy after markets have doubled in last 8 months. They are long term investors and want to invest for 5-10 years.

I recommend REC to all these investors and there's enough reason for me to do so. This is the must buy stock which should be there in ideal portfolio.

REC is a Navratna company having robust revenue and growth. It's operating into landing money for power generation distribution and electrification to the various project across India. As we know there's lot more buzz on power sector and it's likely to be sector of next decade. So what to pick out of these sector? Let's pick the best stock which will turn multibagger for us in next ten years. It's already multibagger for the people who have accumulated the stock on each down turn.

Now there's news flow as well. Government will come up with Follow on Public issue for REC, mostly in Jan-Feb. We've heard lot more about disinvestment and REC will get benefit out of it.

I personally hold REC since IPO - Feb 08 when I got it for 105 Rs. and then stock moved to 60 Rs during pick of downturn. Afterwards it's marching towards new highs only. This price movement is based on fundamentals, robust revenue growth and news flow as well. It has touched all time high of 266 Rs. It has already turned multibagger for lot of people. Now it has corrected almost 12-14% and trading at around 230 Rs.

People who missed recent rally should go and buy stock like REC on every dip which will definitely reward them with good returns in upcoming years.

I think this is the best buy for the person who believes in INDIA GROWTH STORY.

Hope this investment idea would help lot of people. Please post your comment in case you have some query.

Happy Investing!!