ScoreWhy is Rashtriya Chemicals & Fertilizers Ltd. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.39 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.39 times
2
Poor long term growth as Operating profit has grown by an annual rate 2.41% of over the last 5 years
- PAT(Q) At Rs 156.19 cr has Grown at 125.4%
- ROCE(HY) Highest at 9.27%
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.08 times
3
With ROCE of 7.1, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -9.51%, its profits have risen by 65.9% ; the PEG ratio of the company is 0.3
4
Despite the size of the company, domestic mutual funds hold only 0.58% 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
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 0.51% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.51% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to RCF should be less than 10%
- Overall Portfolio exposure to Fertilizers should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is RCF for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
RCF
-9.64%
-0.27
34.70%
Sensex
-6.37%
-0.48
13.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.41%
EBIT Growth (5y)
2.41%
EBIT to Interest (avg)
3.49
Debt to EBITDA (avg)
3.45
Net Debt to Equity (avg)
0.78
Sales to Capital Employed (avg)
2.30
Tax Ratio
29.86%
Dividend Payout Ratio
30.04%
Pledged Shares
0
Institutional Holding
2.99%
ROCE (avg)
11.10%
ROE (avg)
10.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
24
Price to Book Value
1.47
EV to EBIT
17.75
EV to EBITDA
12.24
EV to Capital Employed
1.27
EV to Sales
0.62
PEG Ratio
0.29
Dividend Yield
1.68%
ROCE (Latest)
7.14%
ROE (Latest)
7.75%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
PAT(Q)
At Rs 156.19 cr has Grown at 125.4%
ROCE(HY)
Highest at 9.27%
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.08 times
NET SALES(Q)
Highest at Rs 5,580.57 cr
PBDIT(Q)
Highest at Rs 324.08 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 5.81%
PBT LESS OI(Q)
Highest at Rs 162.48 cr.
EPS(Q)
Highest at Rs 3.38
-9What is not working for the Company
INTEREST(9M)
At Rs 237.64 cr has Grown at 46.01%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 152.73 cr
DEBT-EQUITY RATIO(HY)
Highest at 0.81 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.94 times
Loading Valuation Snapshot...
Here's what is working for RCF
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 162.48 cr has Grown at 252.83%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 156.19 cr has Grown at 125.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 5,580.57 cr has Grown at 49.63%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 4.08 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 5,580.57 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 324.08 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 5.81%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 162.48 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 156.19 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.38
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for RCF
Interest - Latest six months
At Rs 182.89 cr has Grown at 65.81%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 152.73 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Highest at 0.81 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 3.94 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 68.26 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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