RCF - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 2.9

🧾 Financial Fundamentals Review

Earnings & Profitability

EPS: ₹4.39 and Quarterly PAT dip from ₹80.2 Cr to ₹69.7 Cr — shows pressure on margins.

ROE: 5.12%, ROCE: 7.50% — relatively low returns indicate capital inefficiency compared to sector leaders.

Dividend Yield

0.81% — modest payout, slightly higher than peers, but not enough to offset growth concerns.

Debt Load

Debt-to-Equity: 0.58 — moderately leveraged, acceptable but calls for tight cost control if earnings remain volatile.

🧮 Valuation Snapshot

Indicator Value Remarks

P/E Ratio 35.1 Above industry average (26.1) — overvalued

P/B Ratio ~1.77 Fair valuation, aligns with asset-heavy structure

PEG Ratio –1.33 Negative — suggests declining earnings or valuation disconnect

RSI 45.9 Neutral — no strong buying or selling pressure

MACD –0.57 Slightly bearish — price weakness expected

Price vs DMA ₹152 vs DMA50/200 ₹153 Matching averages — consolidating zone

Volume: Below average — weak participation, suggests cautious sentiment.

52W Index Rank: 38.1% — deep off highs, sentiment remains subdued.

Institutional Activity

FIIs reduced stake (–0.18%), DIIs flat (+0.01%) — not enthusiastic currently.

🧪 Business Model & Moat Assessment

Industry: Chemicals & Fertilizers — cyclical demand, government subsidy impact.

Strengths

Public-sector backing provides stability.

Vital role in agricultural input supply; seasonality drives performance.

Weaknesses

Low margins, susceptible to raw material price swings.

Fluctuating government support can affect topline and profitability.

🎯 Investment Outlook

Suggested Entry Zone: ₹140–₹150 — fair margin of safety near recent support.

Long-Term View

May suit conservative investors with a value tilt and dividend interest.

Not ideal for aggressive growth strategies — focus on capacity ramp-up and subsidy reforms.

I can pull up a comparative lens against Chambal Fertilisers or NFL to assess pricing strategies, operating margins, and subsidy dependencies. Want to see how they stack up?

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