Rashtriya Chemicals & Fertilizers Ltd. (RCF) AI Stock Analysis

• Market Cap: ₹69.93B
• Dividend Yield: 0.93%
• Average Volume (3M): 69.74K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.86
• Revenue Growth: -3.19%
• EPS Growth: 59.25%
• Country: IN
• Employees: 2,526
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 1.47
• Shares Outstanding: 551,688,100
• 10 Day Avg. Volume: 60,425
• 30 Day Avg. Volume: 69,743
• PEG Ratio: 3.81
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹134.00 ▼(-10.25% Downside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

The overall stock score for Rashtriya Chemicals & Fertilizers Ltd. is driven primarily by its strong financial performance, which indicates potential for future profitability. However, technical analysis suggests a neutral trend with weak momentum, and the valuation indicates potential overvaluation concerns. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Essential product demand / market position

RCF sells essential agricultural fertilizers (urea and complex NPK), giving it durable, recession-resilient demand and deep distribution into dealers, cooperatives and institutional buyers. That structural market position supports steady volumes and baseline revenue over multi-month horizons.

Balance sheet stability

Moderate leverage and a stable equity ratio provide financial flexibility to fund maintenance capex and working capital without excessive refinancing risk. This balance-sheet posture supports credible resilience to cyclical pressures and enables strategic investment over the coming quarters.

Improving cash generation

Notable improvement in free cash flow and solid operating-cash-flow-to-net-income conversion indicate better cash management and working-capital controls. Sustained cash generation underpins capex, subsidy timing gaps and potential deleveraging over the next several months.

Negative Factors

Recent revenue contraction

Reported revenue decline (~-2.66%) signals weakening top-line momentum versus prior year, which can pressure margins and limit reinvestment. If this trend persists, it may reflect volume or pricing headwinds that undermine medium-term earnings stability and growth initiatives.

Low net profit margin / cost management

A relatively low net profit margin limits the company’s ability to absorb input-cost shocks and reduces ROE uplift from revenue gains. Persistent margin weakness constrains retained earnings for capex or debt reduction and increases sensitivity to operational cost volatility.

Exposure to feedstock costs and subsidy timing

Heavy reliance on government-regulated pricing/subsidy frameworks and volatile feedstock (natural gas) costs creates structural cash-flow and margin variability. Regulatory or subsidy-payment shifts and commodity price swings can materially alter profitability for multiple quarters.

Rashtriya Chemicals & Fertilizers Ltd. Business Overview & Revenue Model

Company Description

Rashtriya Chemicals and Fertilizers Limited manufactures, markets, and sells fertilizers and industrial chemicals primarily in India. The company operates through Fertilizers, Industrial Chemicals, and Trading segments. It offers various fertilizers, including Suphala 15:15:15, a granular natural color fertilizer that is used in the cultivation of cash crops and fruit crops, as well as in improving the yield of plantation crops; Ujjwala neem coated urea, a chemical fertilizer; Biola, a bio-fertilizer that solubilizes the fixed phosphorus in the soil and makes it available to the crops; Sujala water soluble fertilizers that contain nitrogen, phosphorus, and potash for crops grown in green houses, as well as other field crops; and Microla micronutrients. The company also provides basic chemicals, such a methanol, ammonia, ammonium nitrate, sodium nitrate, sodium nitrite, ammonium bicarbonate, methylamines, dimethyl formamide and dimethyl acetamide, formic acid, and argon. In addition, it offers soil testing and farmer training services, as well as publishes RCF Sheti Patrika, a monthly farm magazine. Rashtriya Chemicals and Fertilizers Limited was incorporated in 1978 and is based in Mumbai, India.

How the Company Makes Money

RCF generates revenue primarily through the sale of its fertilizer products, including urea, ammonium sulfate, and complex fertilizers. The company benefits from government subsidies on fertilizers, which helps maintain competitive pricing and attract a larger customer base. In addition to fertilizers, RCF also produces industrial chemicals that contribute to its revenue stream. The company has established strategic partnerships with various agricultural institutions and cooperatives, enhancing its market reach. Furthermore, RCF engages in initiatives to promote sustainable agricultural practices, which can lead to additional revenue opportunities in the growing market for eco-friendly fertilizers.

Rashtriya Chemicals & Fertilizers Ltd. Financial Statement Overview

Summary

Rashtriya Chemicals & Fertilizers Ltd. exhibits strong revenue growth and efficient operations, which is promising for future profitability. The balance sheet is stable, although there is room for enhancing profitability metrics such as net profit margin and ROE. Cash flow management has improved, yet further improvements in free cash flow conversion are necessary. Overall, the company is on a positive trajectory but must address cost management and profitability to maximize shareholder value.

Income Statement

Rashtriya Chemicals & Fertilizers Ltd. shows strong revenue growth with a significant increase in total revenue from the previous year. The gross profit margin is healthy, indicating efficient production processes. However, the net profit margin is relatively low, reflecting potential cost management issues. The EBIT and EBITDA margins are positive, suggesting operational efficiency but with room for improvement.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which suggests a balanced use of debt and equity financing. The equity ratio is stable, showing a good proportion of assets financed by equity. Return on equity is modest, indicating potential for improved profitability on shareholders' investment. While there is some leverage, it is within manageable limits.

Cash Flow

The company has shown improvement in free cash flow from previous periods, reflecting better cash management. The operating cash flow to net income ratio suggests that the company effectively converts its income into cash. However, the free cash flow to net income ratio highlights areas for further improvement in cash generation relative to profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	159.08B	169.34B	169.81B	78.83B	53.14B	82.81B
Gross Profit	66.86B	66.50B	-37.09B	-112.35B	62.82B	374.80M
EBITDA	8.95B	8.46B	7.12B	16.57B	12.44B	8.79B
Net Income	2.86B	2.42B	2.25B	9.66B	7.02B	3.84B
Balance Sheet
Total Assets	0.00	112.67B	114.56B	97.05B	105.31B	76.42B
Cash, Cash Equivalents and Short-Term Investments	10.36B	12.00B	1.56B	113.00M	11.08B	14.71B
Total Debt	0.00	27.62B	32.97B	18.77B	29.79B	20.79B
Total Liabilities	-47.45B	65.21B	68.50B	51.15B	66.49B	42.90B
Stockholders Equity	47.45B	47.45B	46.06B	45.90B	38.82B	33.51B
Cash Flow
Free Cash Flow	0.00	15.36B	-9.05B	4.02B	-7.62B	49.65B
Operating Cash Flow	0.00	23.64B	-4.22B	7.87B	-5.92B	52.11B
Investing Cash Flow	0.00	-6.81B	-4.64B	-3.16B	-3.79B	-6.10B
Financing Cash Flow	0.00	-8.53B	10.32B	-15.60B	5.99B	-31.31B

Rashtriya Chemicals & Fertilizers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCF, the sentiment is Negative. The current price of 149.3 is above the 20-day moving average (MA) of 131.93, above the 50-day MA of 135.30, and above the 200-day MA of 145.46, indicating a bearish trend. The MACD of -2.00 indicates Positive momentum. The RSI at 38.33 is Neutral, neither overbought nor oversold. The STOCH value of 17.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RCF.

Rashtriya Chemicals & Fertilizers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹66.84B	10.73	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹67.32B	9.72	―	2.80%	15.25%	26.49%
RCF	62 Neutral	₹69.93B	22.33	―	0.93%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MADRASFERT	48 Neutral	₹10.90B	153.78	―	―	3.38%	0.68%
NFL	45 Neutral	₹37.90B	19.46	―	1.77%	-7.78%	-70.89%

Rashtriya Chemicals & Fertilizers Ltd. Corporate Events

Rashtriya Chemicals and Fertilizers Names Nazhat Shaikh as New Chairperson and MD

Rashtriya Chemicals and Fertilizers Ltd. has appointed Director (Finance) Nazhat J. Shaikh as Chairperson and Managing Director with effect from 1 January 2026, following the superannuation and consequent cessation of Shri S. C. Mudgerikar as Chairman and Managing Director at the close of business on 31 December 2025. Shaikh, a chartered accountant and long-time RCF executive who joined the company in 1989, brings extensive experience across finance, IT implementation, governance committees and prior board-level exposure at National Film Development Corporation, signaling continuity in leadership and potentially a smooth transition in strategic and operational oversight for the state-owned fertilizer producer and its stakeholders.

Bombay High Court Overturns Arbitral Award Against Rashtriya Chemicals and Fertilizers

Rashtriya Chemicals and Fertilizers Limited announced that the Bombay High Court has overturned a previous arbitral award in its favor regarding a dispute with Thermax Limited over damages related to the breakdown of two Gas Turbo Generators. The court has ordered RCF to refund the amount of Rs. 218.45 crore along with interest to Thermax Limited. This decision has a significant financial impact on RCF, and the company is considering its options to protect its interests.