⚠ 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 - Swing Trade Analysis with AI Signals

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Rating: 3

Last Updated Time : 20 Mar 26, 12:30 pm

Swing Trade Rating: 3.0

Stock Code RCF Market Cap 6,380 Cr. Current Price 116 ₹ High / Low 167 ₹
Stock P/E 20.5 Book Value 89.3 ₹ Dividend Yield 1.14 % ROCE 7.47 %
ROE 5.00 % Face Value 10.0 ₹ DMA 50 129 ₹ DMA 200 141 ₹
Chg in FII Hold 0.19 % Chg in DII Hold 0.08 % PAT Qtr 81.4 Cr. PAT Prev Qtr 106 Cr.
RSI 40.4 MACD -3.85 Volume 13,91,759 Avg Vol 1Wk 46,59,801
Low price 108 ₹ High price 167 ₹ PEG Ratio -0.76 Debt to equity 0.56
52w Index 13.8 % Qtr Profit Var 2.16 % EPS 5.69 ₹ Industry PE 17.2

📊 Rashtriya Chemicals & Fertilizers (RCF) shows moderate fundamentals and weak technical indicators, making it a cautious candidate for swing trading. The RSI at 40.4 is near oversold territory, while MACD (-3.85) indicates bearish momentum. The stock is trading below both its 50 DMA (129 ₹) and 200 DMA (141 ₹), signaling short-term weakness. Valuation is slightly high with a P/E of 20.5 compared to industry average of 17.2, though dividend yield and institutional interest provide some support.

💡 Optimal Entry Price: Around 112–118 ₹ (near current support)

💡 Exit Strategy (if already holding): Consider exiting near 128–130 ₹ (50 DMA resistance) unless momentum strengthens.

🌟 Positive

  • Dividend yield of 1.14% provides steady income.
  • Book value of 89.3 ₹ supports valuation stability.
  • EPS of 5.69 ₹ reflects consistent earnings.
  • FII (+0.19%) and DII (+0.08%) holdings increased slightly.

⚠️ Limitation

  • P/E ratio (20.5) higher than industry average (17.2), suggesting mild overvaluation.
  • Weak ROCE (7.47%) and ROE (5.00%) show modest efficiency.
  • Quarterly PAT declined (81.4 Cr. vs 106 Cr.).
  • Stock trading below both 50 DMA and 200 DMA.

📉 Company Negative News

  • Bearish technical indicators: RSI near oversold and MACD negative.
  • Stock underperforming relative to recent highs (167 ₹).
  • Quarterly profit decline shows operational weakness.

📈 Company Positive News

  • Dividend yield supports investor confidence.
  • Institutional investors marginally increasing holdings.
  • Quarterly profit variation of 2.16% shows some stability despite decline.

🏭 Industry

  • Industry P/E at 17.2, while RCF trades at a premium (20.5).
  • Fertilizer sector benefits from government support and agricultural demand.
  • Competition remains strong, requiring efficiency improvements.

✅ Conclusion

RCF is fundamentally stable but technically weak, making it a cautious swing trade candidate. Entry near 112–118 ₹ is favorable, with an exit target around 128–130 ₹. Traders should remain cautious due to weak momentum and modest efficiency, while long-term investors may hold for steady dividends and sectoral support from agriculture demand.

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