Rashtriya Chemicals and Fertilizers Ltd

Ticker: RCF
Decent 68/100

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Investing Reference

Price
149.28
Market Cap
8235.60
Debt/Equity
0.5821
ROE %
5.186
PB
1.7355
Promoter %
75.001
Pledge %
0.000
1Y Rev Growth %
-0.485
5Y Rev Growth %
11.720
NP Margin %
1.418
NP Margin 5Y Avg %
3.424

Trading Reference

1M Return %
4.497
6M Return %
8.197
1Y Return %
-7.504
% Away 52W High
26.534
% Away 52W Low
34.729
Daily Volume
1328185
Investment Verdict
Buy
Score 75/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 32/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Rashtriya Chemicals and Fertilizers Ltd shows stable growth potential amid favorable market conditions.

✅ Positives
  • Strong demand for fertilizers in India
  • Government support for agricultural initiatives
  • Consistent revenue growth over recent quarters

⚠️ Negatives
  • Volatility in raw material prices
  • Regulatory challenges in the sector
  • Dependence on monsoon for sales

Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 31/10/2025

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Business Overview

Rashtriya Chemicals and Fertilizers Ltd (RCF) is a leading player in India's fertilizer sector, dedicated to enhancing agricultural productivity and sustainability. Catering primarily to farmers and agricultural businesses, RCF plays a crucial role in ensuring food security in the country. With a strong commitment to innovation and quality, RCF is at the forefront of developing eco-friendly fertilizers that support modern farming practices.

  • Established leader in the fertilizer industry
  • Focus on sustainable agricultural practices
  • Innovative and eco-friendly product range
  • Strong support for Indian farmers
  • Contributes to national food security

Investment Thesis

Rashtriya Chemicals and Fertilizers Ltd stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustained growth and profitability, making it a compelling investment opportunity.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expanding digital services present significant growth potential in a tech-driven market.
  • Current valuation is appealing compared to industry peers, indicating upside potential.
  • Focus on sustainable practices aligns with global trends, boosting long-term prospects.
  • Resilient demand for fertilizers ensures stable revenue streams.

Opportunity vs Risk

Opportunities
  • Growing demand for fertilizers
  • Government support for agriculture
  • Expansion into new markets
  • Technological advancements in production
Risks ⚠️
  • Volatility in raw material prices
  • Regulatory changes affecting operations
  • Dependence on monsoon patterns
  • Competition from private players

Peer Perspective

Rashtriya Chemicals and Fertilizers Ltd trades at a discount to peers like Chambal Fertilisers and Coromandel International, primarily due to margin volatility; a stable margin outlook could trigger a rerating.

Future Outlook

Rashtriya Chemicals and Fertilizers Ltd is well-positioned for growth, provided it maintains strong execution and cost control measures. Continued demand in the agricultural sector could further enhance its market standing.

AI FAQs for Retail Users

  • Q: What does Rashtriya Chemicals and Fertilizers Ltd do?
    A: The company produces fertilizers and chemicals, primarily serving the agricultural sector in India.
  • Q: Is Rashtriya Chemicals and Fertilizers Ltd a public company?
    A: Yes, it is publicly traded on Indian stock exchanges.
  • Q: What factors influence the stock price of Rashtriya Chemicals and Fertilizers Ltd?
    A: Stock price can be influenced by market conditions, fertilizer demand, and government policies.
  • Q: What are the risks of investing in this stock?
    A: Risks include market volatility, regulatory changes, and fluctuations in raw material prices.
  • Q: How can I invest in Rashtriya Chemicals and Fertilizers Ltd?
    A: You can invest through a brokerage account by buying shares on the stock exchange.
📊 Stock Investment Checklist (100 Points)
Rashtriya Chemicals and Fertilizers Ltd • Updated: 2025-09-17 15:24:56
  • 10
    Business
    High
    The sector is essential but faces regulatory challenges.
  • 10
    Growth
    High
    Moderate revenue growth with some fluctuations in profits.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are slightly above industry average.
  • 7
    Balance
    High
    Moderate debt levels with adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is stable, but some concerns over disclosures.
  • 5
    Drivers
    Good
    Growth drivers exist but execution risks are notable.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
Rashtriya Chemicals and Fertilizers Ltd shows potential but faces several challenges that could impact future performance.


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