Rashtriya Chemicals & Fertilizers Ltd. (RCF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M B Agro Prod.

Mangalore Chem.

Chambal Fert.

GNFC

Paradeep Phosph.

EID Parry

Deepak Fertilis.

GSFC

Natl.Fertilizer

RCF

F A C T

Why is Rashtriya Chemicals & Fertilizers Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -6.17% of over the last 5 years

INTEREST(Latest six months) At Rs 158.22 cr has Grown at 44.35%
OPERATING PROFIT TO INTEREST (Q) Lowest at 2.36 times
NET SALES(Q) At Rs 4,236.44 cr has Grown at -6.24%

Despite the size of the company, domestic mutual funds hold only 0.71% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.19% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RCF for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

RCF

-5.19%

-0.15

35.46%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.12%

EBIT Growth (5y)

-6.17%

EBIT to Interest (avg)

3.57

Debt to EBITDA (avg)

3.29

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.26

Tax Ratio

27.82%

Dividend Payout Ratio

30.26%

Pledged Shares

Institutional Holding

2.91%

ROCE (avg)

11.87%

ROE (avg)

10.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

15.98

EV to EBITDA

10.16

EV to Capital Employed

1.23

EV to Sales

0.49

PEG Ratio

0.93

Dividend Yield

1.97%

ROCE (Latest)

6.90%

ROE (Latest)

6.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(9M)

At Rs 240.73 cr has Grown at 41.61%

PBDIT(Q)

Highest at Rs 244.69 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 5.78%

-12What is not working for the Company

INTEREST(Latest six months)

At Rs 158.22 cr has Grown at 44.35%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.36 times

NET SALES(Q)

At Rs 4,236.44 cr has Grown at -6.24%

NON-OPERATING INCOME(Q)

is 44.39 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for RCF

Profit After Tax (PAT) - Nine Monthly

At Rs 240.73 cr has Grown at 41.61%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 244.69 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 5.78%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Nine Monthly

Higher at Rs 240.73 Cr

than preceding 12 month period ended Dec 2025 of Rs 239.29 cr

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

PAT (Rs Cr)

Here's what is not working for RCF

Interest - Quarterly

At Rs 103.47 cr has Grown at 88.99%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 2.36 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

At Rs 4,236.44 cr has Grown at -6.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 103.47 cr

in the last five quarters and Increased by 88.99 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 44.39 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 52.30 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income