Shares of Rural Electrification Corporation (REC) surged nearly 2% on March 19 after the company announced a fourth interim dividend of Rs 3.6 per share for the financial year 2024-25. The company, in an exchange filing post its board meeting, confirmed that the record date for dividend eligibility is set for March 26, and the payout will be made on or before April 16.

This announcement comes at a time when REC stock has witnessed significant volatility. Over the past month, the stock has rebounded sharply, following a 19% decline in the previous six months.

CLSA Sees 38% Upside in REC Stock

International brokerage CLSA has maintained an 'outperform' rating on REC, setting a target price of Rs 590 per share, indicating a potential upside of nearly 38% from its last closing price. The brokerage firm believes that concerns regarding growth slowdown, competitive pressure, and softer power demand are overstated.

Market experts highlight that PSU stocks, including REC, had been under pressure due to weak investor sentiment, but fundamental growth drivers remain intact.

Hero MotoCorp Faces Senior-Level Exits, Stock Under Pressure

In a separate development, Hero MotoCorp witnessed a wave of senior-level resignations, which weighed on its stock price. CNBC-TV18, citing industry sources, reported that five senior officials, including HR Head for Talent Management Sameer Pande, have resigned from their positions.

The other four key executives who have stepped down include:

• Reema Jain – Chief Information & Digital Officer

• Swadesh Srivastava – Chief Business Officer, Emerging Mobility BU & Chair, Innovation Council

• Dharm Rakshit – Head of HR

• Chandrasekar Radhakrishnan – Head of Business Growth, Emerging Mobility

These exits come after the resignation of CEO Niranjan Gupta earlier this year, whose last working day is April 30. The company has announced that Vikram Kasbekar, Executive Director (Operations), will serve as Acting CEO from May 1, 2025.

The recent departures have raised concerns over corporate stability and future leadership at Hero MotoCorp, the largest two-wheeler manufacturer in India. However, despite governance concerns that surfaced in 2023, sources revealed that the Ministry of Corporate Affairs (MCA) found no breach of corporate governance norms or fund violations at Hero MotoCorp after a two-year probe.

The stock of Hero MotoCorp hit a 52-week low of Rs 3,462 on March 17, currently trading 43% lower than its 52-week high of Rs 6,246, which it had reached in September last year.

Market Outlook: REC Gains, Hero MotoCorp Faces Uncertainty

• REC’s dividend declaration and positive outlook from CLSA are expected to support stock momentum in the near term.

• Hero MotoCorp's leadership shake-up may create short-term volatility, but regulatory clearance from MCA could restore investor confidence.

• Investors are advised to track further developments in both stocks closely.

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