⚠ 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: 3.2
| Stock Code | RCF | Market Cap | 7,484 Cr. | Current Price | 136 ₹ | High / Low | 167 ₹ |
| Stock P/E | 24.2 | Book Value | 89.3 ₹ | Dividend Yield | 0.97 % | ROCE | 7.47 % |
| ROE | 5.00 % | Face Value | 10.0 ₹ | DMA 50 | 140 ₹ | DMA 200 | 147 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.08 % | PAT Qtr | 106 Cr. | PAT Prev Qtr | 54.1 Cr. |
| RSI | 47.6 | MACD | -2.07 | Volume | 46,58,976 | Avg Vol 1Wk | 22,93,437 |
| Low price | 108 ₹ | High price | 167 ₹ | PEG Ratio | -0.89 | Debt to equity | 0.56 |
| 52w Index | 47.3 % | Qtr Profit Var | 34.5 % | EPS | 5.66 ₹ | Industry PE | 18.4 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹106 Cr, up from ₹54.1 Cr, showing strong sequential growth. EPS at ₹5.66 is modest relative to market cap.
- Margins: ROE at 5.00% and ROCE at 7.47% reflect weak efficiency and profitability compared to peers.
- Debt Ratios: Debt-to-equity at 0.56 is moderate, manageable but worth monitoring.
- Cash Flows: Profitability recovery supports cash flows, though margins remain thin.
💹 Valuation Indicators
- P/E Ratio: 24.2, higher than industry average of 18.4, suggesting premium valuation.
- P/B Ratio: Current price ₹136 vs. book value ₹89.3 → ~1.52x, fairly reasonable relative to assets.
- PEG Ratio: -0.89, negative, reflecting weak growth-adjusted valuation.
- Intrinsic Value: Current valuation appears slightly above intrinsic worth, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Rashtriya Chemicals and Fertilizers (RCF) operates in fertilizers and chemicals, serving agriculture and industrial sectors.
- Competitive advantage lies in government backing, established distribution network, and diversified product portfolio.
- Business model benefits from agricultural demand cycles and government subsidies, but profitability remains cyclical.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹120 – ₹130, near DMA200 and support levels.
- Long-Term Holding: Suitable for investors seeking exposure to agriculture and chemicals, though efficiency ratios are weak. Best to accumulate on dips.
✅ Positive
- Quarterly PAT growth from ₹54.1 Cr to ₹106 Cr.
- FII holding increased (+0.19%) and DII holding increased (+0.08%).
- Strong 52-week performance with 47.3% gain.
⚠️ Limitation
- Weak ROE (5.00%) and ROCE (7.47%).
- Negative PEG ratio (-0.89) indicates poor growth-adjusted valuation.
- Dividend yield of 0.97% is modest.
📉 Company Negative News
- Efficiency ratios remain weak despite profit growth.
- Valuation premium compared to industry average.
📈 Company Positive News
- Quarterly profit variation of 34.5% highlights strong recovery momentum.
- Institutional investors increased holdings marginally.
- Stock has rebounded strongly from 52-week low of ₹108.
🏭 Industry
- Fertilizer and chemicals sector trades at industry PE of 18.4, lower than RCF’s 24.2, showing premium valuation.
- Sector growth supported by agricultural demand and government subsidies.
🔎 Conclusion
- RCF shows strong profit recovery and institutional support but suffers from weak efficiency ratios.
- Valuation is slightly stretched, limiting near-term upside.
- Best suited for long-term investors seeking exposure to agriculture and chemicals, with entry around ₹120 – ₹130 offering a reasonable margin of safety.
Would you like me to also prepare a comparative HTML snapshot of RCF versus GNFC to highlight valuation and profitability differences in the fertilizer and chemicals sector?