RCF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | RCF | Market Cap | 7,464 Cr. | Current Price | 135 ₹ | High / Low | 167 ₹ |
| Stock P/E | 24.1 | Book Value | 89.3 ₹ | Dividend Yield | 0.98 % | ROCE | 7.47 % |
| ROE | 5.00 % | Face Value | 10.0 ₹ | DMA 50 | 139 ₹ | 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 | 47.1 | MACD | -1.73 | Volume | 11,58,740 | Avg Vol 1Wk | 22,25,471 |
| Low price | 108 ₹ | High price | 167 ₹ | PEG Ratio | -0.89 | Debt to equity | 0.56 |
| 52w Index | 46.6 % | Qtr Profit Var | 34.5 % | EPS | 5.66 ₹ | Industry PE | 18.7 |
📊 Analysis: RCF trades at a premium valuation (P/E 24.1 vs industry 18.7) with modest efficiency metrics (ROCE 7.47%, ROE 5.00%). EPS at ₹5.66 is relatively weak compared to price, and dividend yield at 0.98% is modest. The current price (₹135) is below both 50 DMA (₹139) and 200 DMA (₹147), reflecting technical weakness. RSI at 47.1 suggests neutral momentum, while MACD (-1.73) indicates bearish bias. Quarterly PAT improved significantly (₹54.1 Cr → ₹106 Cr), showing earnings growth, but PEG ratio (-0.89) signals poor growth valuation. Overall, RCF is a cautious swing trade candidate with limited upside unless momentum improves.
💡 Optimal Entry Price: Around ₹130–₹132 (near support zone).
🚪 Exit Strategy: If already holding, consider booking profits near ₹145–₹150 (DMA resistance). Exit below ₹128 if weakness persists to protect capital.
✅ Positive
- Quarterly PAT growth (₹54.1 Cr → ₹106 Cr).
- Dividend yield of 0.98% adds investor appeal.
- Institutional holdings increased (FII +0.19%, DII +0.08%).
- Debt-to-equity ratio at 0.56 is manageable.
⚠️ Limitation
- Valuation premium (P/E 24.1 vs industry 18.7).
- Weak ROCE (7.47%) and ROE (5.00%).
- Price trading below both 50 DMA and 200 DMA.
- MACD indicates bearish trend.
- PEG ratio (-0.89) signals poor growth valuation.
📉 Company Negative News
- Weak efficiency metrics despite earnings growth.
- Volume lower than weekly average, showing reduced participation.
- 52-week index at 46.6% reflects moderate price performance.
📈 Company Positive News
- Quarterly PAT doubled, showing strong operational improvement.
- Institutional inflows (FII and DII) support investor confidence.
🏭 Industry
- Industry P/E at 18.7 highlights RCF’s premium valuation.
- Fertilizer and chemicals sector benefits from agricultural demand and government support.
🔎 Conclusion
RCF is fundamentally stable with recent profit growth and manageable debt, but weak efficiency and bearish technicals limit swing trade potential. Entry near ₹130–₹132 may offer short-term opportunities, with exit near ₹145–₹150. Risk management is essential due to stretched valuations and modest fundamentals.