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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Paradeep Phosph.

EID Parry

Mangalore Chem.

GNFC

Deepak Fertilis.

RCF

Chambal Fert.

GSFC

F A C T

Natl.Fertilizer

Kothari Indl

Why is Rashtriya Chemicals & Fertilizers Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -4.56% of over the last 5 years

Despite the size of the company, domestic mutual funds hold only 0.49% 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

Below par performance in long term as well as near term

Along with generating -24.14% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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, Low Return

Absolute

Risk Adjusted

Volatility

RCF

-24.25%

-0.66

36.43%

Sensex

4.75%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.03%

EBIT Growth (5y)

-4.56%

EBIT to Interest (avg)

3.78

Debt to EBITDA (avg)

3.29

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.26

Tax Ratio

25.84%

Dividend Payout Ratio

30.26%

Pledged Shares

Institutional Holding

2.65%

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

1.52

EV to EBIT

20.18

EV to EBITDA

12.50

EV to Capital Employed

1.39

EV to Sales

0.54

PEG Ratio

0.36

Dividend Yield

0.96%

ROCE (Latest)

6.90%

ROE (Latest)

6.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

16What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.91 times

NET SALES(Q)

Highest at Rs 5,292.58 cr

PBDIT(Q)

Highest at Rs 214.33 cr.

PBT LESS OI(Q)

Highest at Rs 89.46 cr.

PAT(Q)

At Rs 105.35 cr has Grown at 33.4%

EPS(Q)

Highest at Rs 1.91

-3What is not working for the Company

NON-OPERATING INCOME(Q)

is 36.38 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for RCF

Operating Profit to Interest - Quarterly

Highest at 3.91 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 89.46 cr has Grown at 40.31%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 5,292.58 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 5,292.58 cr has Grown at 23.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 214.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 89.46 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 105.35 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 105.35 cr has Grown at 33.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.91

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for RCF

Non Operating Income - Quarterly

is 36.38 % 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 51.15 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income