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

• Market Cap: ₹76.44B
• Dividend Yield: 0.95%
• Average Volume (3M): 69.74K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.70
• Revenue Growth: -3.19%
• EPS Growth: 59.25%
• Country: IN
• Employees: 2,526
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 1.91
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹159.00 ▲(14.76% Upside)

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

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and increase sales, supporting long-term business sustainability.

Operational Efficiency

Efficient production processes and healthy gross margins suggest the company can maintain cost-effective operations, enhancing profitability over time.

Cash Flow Management

Improved cash flow management ensures the company can effectively fund operations and investments, supporting long-term financial health.

Negative Factors

Net Profit Margin

Low net profit margins indicate challenges in cost management, which could affect profitability and shareholder returns if not addressed.

Free Cash Flow Conversion

Suboptimal free cash flow conversion suggests inefficiencies in translating profits into cash, potentially limiting reinvestment capabilities.

Return on Equity

A modest return on equity suggests the company may not be fully optimizing shareholder investments, impacting long-term value creation.

Rashtriya Chemicals & Fertilizers Ltd. Business Overview & Revenue Model

Company Description

Rashtriya Chemicals & Fertilizers Ltd. (RCF) is a leading manufacturer of fertilizers and chemicals in India, primarily engaged in the production of urea, and various other fertilizers and industrial chemicals. Established in 1978, RCF operates multiple plants across the country and plays a vital role in supporting the agricultural sector by providing essential nutrients to enhance crop productivity. The company also focuses on sustainable practices and innovation to develop eco-friendly products that meet the growing demands of farmers.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: 138.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 138.55 is below the 20-day moving average (MA) of 139.53, below the 50-day MA of 145.17, and below the 200-day MA of 144.62, indicating a bearish trend. The MACD of -1.96 indicates Negative momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 43.61 is Neutral, 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	₹71.40B	11.23	―	3.70%	-7.53%	42.74%
GSFC	68 Neutral	₹69.18B	10.35	―	2.88%	15.25%	26.49%
RCF	62 Neutral	₹76.44B	24.46	―	0.95%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANGCHEFER	61 Neutral	₹36.55B	22.64	―	0.49%	-7.43%	8.03%
MADRASFERT	48 Neutral	₹11.85B	14.96	―	―	3.38%	0.68%
NFL	45 Neutral	₹42.16B	40.01	―	1.82%	-7.78%	-70.89%

Rashtriya Chemicals & Fertilizers Ltd. Corporate Events

Rashtriya Chemicals & Fertilizers Ltd. Plans Rs. 400 Crore Debenture Issuance

Rashtriya Chemicals & Fertilizers Ltd. announced the closure of its trading window in compliance with SEBI regulations due to an upcoming meeting of its Debenture Allotment Committee. The meeting, scheduled for September 25, 2025, aims to approve the issuance of unsecured, redeemable, non-cumulative, taxable, non-convertible debentures through private placement, with a total issue size of Rs. 400 crore. This strategic move is expected to raise funds for the company, potentially impacting its financial operations and market positioning.

Rashtriya Chemicals & Fertilizers Plans Rs. 400 Crore Fundraising via Debentures

Rashtriya Chemicals and Fertilizers Ltd. announced a meeting of its Debenture Allotment Committee to discuss raising funds through the issuance of unsecured, redeemable, non-cumulative, taxable, non-convertible debentures on a private placement basis. The total issue size is set at Rs. 400 crore, with a base of Rs. 300 crore and an option to retain an oversubscription of Rs. 100 crore. This move is likely to impact the company’s financial strategy and market positioning, as it seeks to secure additional capital.