RCF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | RCF | Market Cap | 7,128 Cr. | Current Price | 129 ₹ | High / Low | 167 ₹ |
| Stock P/E | 22.9 | Book Value | 89.3 ₹ | Dividend Yield | 1.02 % | ROCE | 7.47 % |
| ROE | 5.00 % | Face Value | 10.0 ₹ | DMA 50 | 127 ₹ | DMA 200 | 137 ₹ |
| Chg in FII Hold | 0.10 % | Chg in DII Hold | -0.02 % | PAT Qtr | 81.4 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 54.8 | MACD | 2.48 | Volume | 10,51,490 | Avg Vol 1Wk | 11,94,810 |
| Low price | 106 ₹ | High price | 167 ₹ | PEG Ratio | -0.85 | Debt to equity | 0.56 |
| 52w Index | 38.3 % | Qtr Profit Var | 2.16 % | EPS | 5.69 ₹ | Industry PE | 18.5 |
📊 RCF shows weak fundamentals with low ROE (5.00%) and ROCE (7.47%), reflecting poor efficiency. EPS is modest at ₹5.69, and dividend yield remains limited at 1.02%. Valuations are slightly above industry average with P/E (22.9 vs 18.5), while the negative PEG ratio (-0.85) signals poor growth visibility. Debt-to-equity is moderate at 0.56, but quarterly PAT declined (₹81.4 Cr vs ₹106 Cr), raising concerns. Overall, RCF is a risky candidate for long-term holding unless profitability improves significantly.
💡 Ideal Entry Price Zone: ₹120 – ₹125 (near DMA 50 and below current levels for valuation comfort).
⏳ Exit Strategy / Holding Period: Existing holders should adopt a short- to medium-term horizon (12–24 months). Partial profit booking can be considered near ₹135–₹140 (DMA 200 resistance). Long-term holding is not advisable unless ROE and earnings growth improve.
✅ Positive
- Valuations relatively fair (P/E 22.9 vs industry 18.5).
- Dividend yield of 1.02% provides modest income.
- FII holdings increased slightly (+0.10%).
- MACD positive (2.48) indicates short-term bullish momentum.
⚠️ Limitation
- Weak ROE (5.00%) and ROCE (7.47%).
- Negative PEG ratio (-0.85) signals poor growth prospects.
- Quarterly PAT decline shows earnings pressure.
- Dividend yield remains modest compared to peers.
📉 Company Negative News
- Quarterly PAT dropped from ₹106 Cr to ₹81.4 Cr.
- DII holdings reduced (-0.02%).
📈 Company Positive News
- Stock delivered 38.3% gain over the past year.
- Technical support near DMA 50 (₹127).
🏭 Industry
- Industry P/E: 18.5, showing RCF trades at a slight premium.
- Fertilizer sector supported by government subsidies and agricultural demand.
🔎 Conclusion
RCF is a weak fundamental play with modest dividend yield and fair valuations but poor efficiency metrics. New investors should wait for entry around ₹120–₹125 for safety. Existing holders may adopt a short- to medium-term horizon, with partial profit booking near ₹135–₹140. Long-term holding is not advisable unless ROE and growth metrics improve significantly.