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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rashtriya Chemicals & Fertilizers Ltd (RCF)

Basic Stock Data

Last Updated: May 30, 2024, 6:17 am

Market Cap 8,675 Cr.
Current Price 157
High / Low190/101
Stock P/E44.5
Book Value 83.5
Dividend Yield3.37 %
ROCE6.19 %
ROE4.24 %
Face Value 10.0
PEG Ratio26.16

Competitors of Rashtriya Chemicals & Fertilizers Ltd (RCF)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Madhya Bharat Agro Products Ltd 2,117 Cr. 242348/21085.2 39.80.10 %12.1 %7.56 % 10.0
Madras Fertilizers Ltd 1,524 Cr. 94.6124/67.573.0 14.20.00 %27.7 %% 10.0
Nagarjuna Fertilizers & Chemicals Ltd 616 Cr. 10.315.8/7.81 50.20.00 %106 %% 1.00
National Fertilizer Ltd 5,217 Cr. 106130/65.0 44.82.62 %15.6 %19.8 % 10.0
Deepak Fertilisers & Petrochemicals Corp Ltd 6,627 Cr. 525715/45013.7 4111.91 %25.4 %26.5 % 10.0
Industry Average3,220.20 Cr195.5834.38112.000.93%37.36%10.77%8.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,0482,2952,3912,6123,6994,1104,9575,5766,2354,6844,0434,1554,904
Expenses1,8452,0432,1902,4273,4723,7364,5235,1715,7974,4993,9144,0504,819
Operating Profit20325220118522737443340543818512910584
OPM %10%11%8%7%6%9%9%7%7%4%3%3%2%
Other Income2548154374131652640116586738
Interest39363117275250597044394448
Depreciation43464546454745565159565656
Profit before tax146218279160196307403316357197927217
Tax %32%25%26%26%27%24%26%17%31%19%26%29%35%
Net Profit99162207118143234300262245160685111
EPS in Rs1.792.943.762.142.594.245.434.754.442.891.230.920.20

Last Updated: May 11, 2024, 1:54 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:00 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales6,7516,5607,6948,2417,0997,2558,8859,6988,28112,81221,45216,981
Expenses6,1635,9926,8407,7666,6806,9868,4489,1117,52711,82019,96816,469
Operating Profit5885688534754192684375867549921,483512
OPM %9%9%11%6%6%4%5%6%9%8%7%3%
Other Income93736681666110426133263236206
Interest1341371231479664157239181130234184
Depreciation176145263148141137156171175184212233
Profit before tax3723595332622491282292025309421,273301
Tax %27%33%35%35%28%39%42%-3%28%25%24%25%
Net Profit27324134616917979133207384702966225
EPS in Rs4.954.376.273.063.251.432.413.756.9612.7317.524.08
Dividend Payout %30%34%29%36%34%42%32%76%43%30%30%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-11.72%43.57%-51.16%5.92%-55.87%68.35%55.64%85.51%82.81%37.61%-76.71%
Change in YoY Net Profit Growth (%)0.00%55.29%-94.72%57.07%-61.78%124.22%-12.72%29.87%-2.69%-45.21%-114.31%

Growth

Compounded Sales Growth
10 Years:12%
5 Years:24%
3 Years:30%
TTM:-15%
Compounded Profit Growth
10 Years:13%
5 Years:63%
3 Years:49%
TTM:-81%
Stock Price CAGR
10 Years:15%
5 Years:19%
3 Years:25%
1 Year:35%
Return on Equity
10 Years:11%
5 Years:13%
3 Years:17%
Last Year:21%

Last Updated: April 13, 2024, 9:53 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital552552552552552552552552552552552552552
Reserves1,6181,7941,9382,1652,2652,3732,3782,4772,6272,8003,3304,0384,155
Borrowings1,2831,7701,7802,0002,9971,7691,3313,4624,8142,0792,9791,8772,298
Other Liabilities2,1901,7491,3751,5691,8581,8662,0872,4522,3162,2403,6983,2672,969
Total Liabilities5,6425,8645,6456,2857,6726,5596,3488,94210,3097,66910,5589,7349,974
Fixed Assets1,4041,4761,6761,5521,5071,5471,9101,9502,1302,1822,1342,5432,567
CWIP2271847762150107152276433406513211206
Investments000049456280256645935994956
Other Assets4,0104,2043,8914,6725,9664,8604,2236,6367,4904,4376,9775,9866,245
Total Assets5,6425,8645,6456,2857,6726,5596,3488,94210,3097,66910,5589,7349,974

Reserves and Borrowings Chart

Rashtriya Chemicals & Fertilizers Ltd (RCF) Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -150-556315212-6331,5951,078-1,636-5225,211-592787
Cash from Investing Activity -791225-82-201-259-180-496-310-531-610-379-316
Cash from Financing Activity 619281-2103811-1,406-5881,9451,052-3,131599-1,560
Net Cash Flow-322-502314-829-5-2-11,470-372-1,088

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow587.00567.00851.00473.00418.00267.00434.00582.00752.00990.000.00509.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Rashtriya Chemicals & Fertilizers Ltd (RCF) Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days114139154156192187144187171648644
Inventory Days123131941011229790139788213880
Days Payable132805860637582106809113761
Cash Conversion Cycle105190191198251209151220170558763
Working Capital Days80134147150182163126185207526949
ROCE %14%13%12%15%8%7%4%7%8%11%15%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs0.86%1.04%1.20%1.57%2.95%3.07%2.97%2.37%2.27%2.55%2.92%2.58%
DIIs0.46%0.30%0.31%0.30%0.30%0.66%1.13%1.17%0.35%0.34%0.35%0.34%
Public23.68%23.66%23.49%23.12%21.75%21.27%20.88%21.46%22.37%22.10%21.74%22.08%
No. of Shareholders2,40,9762,35,2302,34,7512,25,8072,35,5192,23,0872,15,6492,33,5732,40,8782,40,2982,60,1822,93,160

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)17.5212.736.803.752.43
Diluted EPS (Rs.)17.5212.736.803.752.43
Cash EPS (Rs.)21.3816.099.936.875.34
Book Value[Excl.RevalReserv]/Share (Rs.)83.2070.3660.4257.6254.91
Book Value[Incl.RevalReserv]/Share (Rs.)83.2070.3660.4257.6254.91
Revenue From Operations / Share (Rs.)388.83232.23150.10175.79161.06
PBDIT / Share (Rs.)29.3020.4015.6912.909.49
PBIT / Share (Rs.)25.4517.0812.539.806.66
PBT / Share (Rs.)23.0917.119.363.684.26
Net Profit / Share (Rs.)17.5312.776.763.772.52
NP After MI And SOA / Share (Rs.)17.5212.736.803.752.43
PBDIT Margin (%)7.538.7810.457.345.88
PBIT Margin (%)6.547.358.345.574.13
PBT Margin (%)5.937.366.232.092.64
Net Profit Margin (%)4.505.494.502.141.56
NP After MI And SOA Margin (%)4.505.484.532.131.50
Return on Networth / Equity (%)21.0518.0911.256.514.42
Return on Capital Employeed (%)22.9317.1913.6512.128.73
Return On Assets (%)9.956.664.922.011.50
Long Term Debt / Equity (X)0.220.280.310.180.14
Total Debt / Equity (X)0.400.760.551.471.09
Asset Turnover Ratio (%)2.121.410.921.011.17
Current Ratio (X)1.581.341.651.241.34
Quick Ratio (X)0.850.871.341.081.03
Inventory Turnover Ratio (X)3.603.513.483.113.49
Dividend Payout Ratio (NP) (%)0.0024.5859.3824.7229.76
Dividend Payout Ratio (CP) (%)0.0019.4940.5213.5413.77
Earning Retention Ratio (%)0.0075.4240.6275.2870.24
Cash Earning Retention Ratio (%)0.0080.5159.4886.4686.23
Interest Coverage Ratio (X)7.228.944.822.993.36
Interest Coverage Ratio (Post Tax) (X)4.905.583.052.301.74
Enterprise Value (Cr.)7059.046747.104617.846238.466533.11
EV / Net Operating Revenue (X)0.320.520.550.640.73
EV / EBITDA (X)4.375.995.338.7612.48
MarketCap / Net Operating Revenue (X)0.240.380.510.160.36
Retention Ratios (%)0.0075.4140.6175.2770.23
Price / BV (X)1.151.271.280.491.07
Price / Net Operating Revenue (X)0.240.380.510.160.36
EarningsYield0.180.140.080.130.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹162.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 3.73% compared to the current price ₹157

Intrinsic Value: ₹165.63

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 5.50% compared to the current price ₹157

Last 5 Year EPS CAGR: 1.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (2,686.58 cr) compared to borrowings (2,512.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (9.58 cr) and profit (342.33 cr) over the years.
  1. The stock has a low average ROCE of 11.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 128.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 157.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Rashtriya Chemicals & Fertilizers Ltd (RCF):
    1. Net Profit Margin: 4.50%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.93% (Industry Average ROCE: 37.36%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 21.05% (Industry Average ROE: 10.77%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.90
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.85
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 44.5 (Industry average Stock P/E: 34.38)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.40
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Rashtriya Chemicals & Fertilizers Ltd. is a Public Limited Listed company incorporated on 06/03/1978 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24110MH1978GOI020185 and registration number is 020185. Currently Company is involved in the business activities of Manufacture of straight mixed, compound or complex inorganic fertilizers. Company’s Total Operating Revenue is Rs. 12812.17 Cr. and Equity Capital is Rs. 551.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersPriyadarshini, Eastern Express Highway, Mumbai Maharashtra 400022investorcommunications@rcfltd.com
http://www.rcfltd.com
Management
NamePosition Held
Mr. S C MudgerikarChairman & Managing Director
Ms. Nazhat J ShaikhDirector - Finance & CFO
Mr. Gopinathan Nair AnilkumarIndependent Director
Ms. Aneeta C MeshramGovernment Nominee Director
Mr. Sanjay RastogiGovernment Nominee Director

FAQ

What is the latest fair value of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The latest fair value of Rashtriya Chemicals & Fertilizers Ltd (RCF) is ₹162.86.

What is the Market Cap of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The Market Cap of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 8,675 Cr..

What is the current Stock Price of Rashtriya Chemicals & Fertilizers Ltd (RCF) as on 30 May 2024?

The current stock price of Rashtriya Chemicals & Fertilizers Ltd (RCF) as on 30 May 2024 is ₹157.

What is the High / Low of Rashtriya Chemicals & Fertilizers Ltd (RCF) stocks in FY 2024?

In FY 2024, the High / Low of Rashtriya Chemicals & Fertilizers Ltd (RCF) stocks is 190/101.

What is the Stock P/E of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The Stock P/E of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 44.5.

What is the Book Value of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The Book Value of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 83.5.

What is the Dividend Yield of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The Dividend Yield of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 3.37 %.

What is the ROCE of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The ROCE of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 6.19 %.

What is the ROE of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The ROE of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 4.24 %.

What is the Face Value of Rashtriya Chemicals & Fertilizers Ltd (RCF)?

The Face Value of Rashtriya Chemicals & Fertilizers Ltd (RCF) is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Rashtriya Chemicals & Fertilizers Ltd (RCF). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE