New Delhi, March 4 -- Global brokerage firm CLSA has revised its ratings on Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) to 'High Perform' from 'Outperform.' The upgrade is based on strong loan growth, resilient return on equity (ROE), and attractive dividend yields, making both stocks compelling investment opportunities despite recent market corrections.

CLSA has also cut its target price for both REC and PFC to Rs.525, adjusting downward from the earlier estimates of Rs.590 and Rs.540, respectively.

CLSA noted that asset quality concerns remain minimal, as lenders are exercising strict control over project approvals and agreements amid the ongoing capital expenditure cycle. Despite some procedural slowdo...