RCF - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.9

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📊 Fundamental Analysis Report

• Stock Code: RCF
• Market Cap: ₹8,232 Cr
• Current Price: ₹149
• 52W High/Low: ₹189 / ₹108
• EPS: ₹5.17
• Stock P/E: 29.2 vs Industry P/E: 22.7 ❗
• PEG Ratio: -1.08 ❗ (Negative PEG indicates unreliable growth)
• Book Value: ₹86.2 | P/B Ratio: ~1.73 ✅
• ROE: 5.00% | ROCE: 7.47% 🔻
• Debt to Equity: 0.58 🟡 (Moderate Leverage)
• Dividend Yield: 0.88% 🚫
• Quarterly PAT: ₹54.1 Cr (↓22.6%)
• RSI: 50.0 | MACD: -0.02 📉

✅ Positive

• Reasonable P/B ratio suggests fair valuation relative to asset base.
• Debt-to-equity ratio under 1 indicates manageable financial leverage.
• Quarterly profit variation of 404% YoY reflects strong earnings rebound.
• Stable institutional sentiment with slight increase in FII and DII holdings.

⚠️ Limitation

• ROE and ROCE are modest, indicating limited capital efficiency.
• Negative PEG ratio and high P/E suggest valuation concerns and uncertain growth trajectory.
• Dividend yield below 1% offers minimal passive income.
• MACD and volume trends indicate weak short-term momentum.

📉 Company Negative News

• Sequential PAT declined from ₹69.9 Cr to ₹54.1 Cr.

📈 Company Positive News

• Massive YoY profit growth signals operational turnaround.
• Stock has gained 50.9% over the past year, reflecting investor interest.

🏦 Industry

• RCF operates in the fertilizers and chemicals sector.
• Industry P/E of 22.7 is lower, suggesting RCF trades at a premium.
• Sector benefits from agricultural demand, government subsidies, and rural development initiatives.

🧭 Conclusion

• Entry Zone: ₹140–₹145 (near support and RSI neutral)
• Long-Term View: Strong YoY earnings and sector relevance support long-term potential. Accumulate cautiously while monitoring valuation and profitability metrics.