RCF - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📈 Positive

• 📘 Price is trading above both DMA 50 (₹150) and DMA 200 (₹152), indicating short-term bullish momentum.
• 📈 RSI at 57.9 and MACD at 0.45 suggest neutral-to-positive trend continuation.
• 📊 EPS of ₹5.17 and P/E of 29.9 vs industry P/E of 22.7 imply moderate valuation premium.
• 📈 PAT surged 404% QoQ, showing strong earnings rebound.
• 📉 Debt-to-equity ratio of 0.58 is manageable for a manufacturing company.
• 📈 Slight increase in FII and DII holdings shows stable institutional sentiment.

⚠️ Limitation

• 📉 ROCE of 7.47% and ROE of 5.00% indicate modest capital efficiency.
• 📉 PEG ratio of -1.10 suggests negative growth outlook or earnings volatility.
• 📉 Volume (12.75 lakh) is slightly below 1-week average (14.81 lakh), showing mild participation.
• 📉 Dividend yield of 0.86% offers limited passive income.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over input cost inflation and regulatory hurdles affecting fertilizer margins.

✅ Company Positive News

• 🌾 RCF benefits from government subsidies and rising demand for agricultural inputs.
• 📈 Strong quarterly profit and operational recovery support near-term investor confidence.

🏦 Industry

• 🌱 Operates in the fertilizer and agrochemical sector, which is cyclical but supported by seasonal demand and policy incentives.
• 📊 Industry P/E of 22.7 reflects conservative valuation norms and moderate growth expectations.

🧾 Conclusion

• 📈 RCF shows technical strength and earnings momentum, making it a decent candidate for swing trading with valuation caution.
• 📍 Optimal entry: ₹148–₹151 (near DMA 50 and support zone).
• 🚪 Exit if held: ₹165–₹170 (near recent resistance) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of volume and fertilizer policy updates.

I can also help compare RCF’s swing setup with peers like NFL or Chambal Fertilisers to identify stronger technical setups.