⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RCF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | RCF | Market Cap | 6,656 Cr. | Current Price | 121 ₹ | High / Low | 167 ₹ |
| Stock P/E | 21.4 | Book Value | 89.3 ₹ | Dividend Yield | 1.09 % | ROCE | 7.47 % |
| ROE | 5.00 % | Face Value | 10.0 ₹ | DMA 50 | 129 ₹ | DMA 200 | 141 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.08 % | PAT Qtr | 81.4 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 45.2 | MACD | -3.74 | Volume | 23,84,470 | Avg Vol 1Wk | 54,30,822 |
| Low price | 108 ₹ | High price | 167 ₹ | PEG Ratio | -0.79 | Debt to equity | 0.56 |
| 52w Index | 22.2 % | Qtr Profit Var | 2.16 % | EPS | 5.69 ₹ | Industry PE | 17.9 |
📊 Core Financials
- Revenue Growth: Quarterly PAT declined from ₹106 Cr to ₹81.4 Cr (-2.16%), showing weak momentum.
- Profit Margins: Margins remain modest, reflecting cyclical fertilizer demand.
- Debt Ratios: Debt-to-equity at 0.56 → moderate leverage.
- Cash Flows: Stable due to government-backed fertilizer operations, though profitability is inconsistent.
- Return Metrics: ROE at 5.0% and ROCE at 7.47% → weak efficiency compared to peers.
💹 Valuation Indicators
- P/E Ratio: 21.4 vs Industry PE of 17.9 → slightly overvalued.
- P/B Ratio: ~1.36 (Price ₹121 / Book Value ₹89.3) → fair valuation.
- PEG Ratio: -0.79 → negative, reflecting weak earnings growth outlook.
- Intrinsic Value: Current price close to fair value, limited upside potential.
🏢 Business Model & Competitive Advantage
- Rashtriya Chemicals & Fertilizers (RCF) operates in fertilizer and chemical production.
- Competitive advantage lies in government backing and established distribution network.
- However, profitability and efficiency remain weak, reducing overall health.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹110 – ₹118 (near support levels).
- Long-Term Holding: Suitable for dividend-seeking investors (1.09% yield), but growth prospects remain limited.
✅ Positive
- Government-backed operations ensure stability.
- FIIs (+0.19%) and DIIs (+0.08%) increased holdings.
- Dividend yield of 1.09% provides income support.
- Fair valuation on P/B basis (~1.36).
⚠️ Limitation
- Weak ROE (5.0%) and ROCE (7.47%).
- Negative PEG ratio (-0.79) indicates poor growth prospects.
- Stock trading below DMA50 and DMA200, showing weak momentum.
📉 Company Negative News
- Quarterly PAT declined (-2.16%).
- Weak technical indicators (RSI 45.2, MACD -3.74).
- Stock trading well below 52-week high (₹167 → ₹121).
📈 Company Positive News
- FIIs and DIIs increased holdings.
- Dividend yield supports investor confidence.
- Government backing ensures operational stability.
🏭 Industry
- Fertilizer industry remains cyclical, driven by agricultural demand and government subsidies.
- Industry PE at 17.9, showing RCF trades at a slight premium.
🔎 Conclusion
RCF offers stability with government backing and a modest dividend yield, but weak return ratios and limited growth prospects make it less attractive for long-term compounding. Investors may accumulate near support levels for steady dividend income, but should remain cautious of overvaluation and cyclical risks.