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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rashtriya Chemicals & Fertilizers Ltd (RCF)

About the Company - Rashtriya Chemicals & Fertilizers Ltd (RCF)

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. Milind M DeoDirector - Technical
Mrs. Shashi Bala BhartiIndependent Director
Mr. Chandra Bhushan PandeyIndependent Director
Mr. Gopinathan Nair AnilkumarIndependent Director
Ms. Aneeta C MeshramGovernment Nominee Director
Mr. Sanjay RastogiNominee Director

Rashtriya Chemicals & Fertilizers Ltd. Share Price Update

Share PriceValue
Today₹149.40
Previous Day₹148.75

Basic Stock Data of Rashtriya Chemicals & Fertilizers Ltd (RCF)

Market Cap 8,184 Cr.
Current Price 148
High / Low190/89.5
Stock P/E42.0
Book Value 85.3
Dividend Yield3.57 %
ROCE21.2 %
ROE21.2 %
Face Value 10.0

Data Source: screener.in

Competitors of Rashtriya Chemicals & Fertilizers Ltd (RCF)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Zuari Agro Chemicals Ltd 934 Cr. 222260/1163.00 3790.00 %10.2 %12.8 % 10.0
Deepak Fertilisers & Petrochemicals Corp Ltd 6,525 Cr. 517715/48313.5 4111.96 %25.8 %27.0 % 10.0
National Fertilizer Ltd 5,053 Cr. 103130/60.1 44.82.73 %15.6 %19.8 % 10.0
Sikko Industries Ltd 132 Cr. 78.7118/54.644.1 14.20.19 %16.3 %12.8 % 10.0
Aries Agro Ltd 397 Cr. 306318/14426.0 2000.32 %14.2 %6.83 % 10.0
Industry Average294.8 Cr245.3417.32209.81.04%16.42%15.85%10

Rashtriya Chemicals & Fertilizers Ltd (RCF) Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,3172,0482,2952,3912,6123,6994,1104,9575,5766,2354,6844,0434,155
Expenses2,1181,8452,0432,1902,4273,4723,7364,5235,1715,7974,4993,9144,050
Operating Profit199203252201185227374433405438185129105
OPM %9%10%11%8%7%6%9%9%7%7%4%3%3%
Other Income3225481543741316526401165867
Interest49393631172752505970443944
Depreciation43434645464547455651595656
Profit before tax1391462182791601963074033163571979272
Tax %25%32%25%26%26%27%24%26%17%31%19%26%29%
Net Profit104991622071181432343002622451606851
EPS in Rs1.881.792.943.762.142.594.245.434.754.442.891.230.92

Rashtriya Chemicals & Fertilizers Ltd (RCF) Quarterly Chart

Rashtriya Chemicals & Fertilizers Ltd (RCF) Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,3586,7516,5607,6948,2417,0997,2558,8859,6988,28112,81221,45219,117
Expenses5,9536,1635,9926,8407,7666,6806,9868,4489,1117,52711,82019,96818,260
Operating Profit4055885688534754192684375867549921,483857
OPM %6%9%9%11%6%6%4%5%6%9%8%7%4%
Other Income16593736681666110426133263236281
Interest531341371231479664157239181130234198
Depreciation143176145263148141137156171175184212223
Profit before tax3743723595332622491282292025309421,273718
Tax %33%27%33%35%35%28%39%42%-3%28%25%24%
Net Profit24927324134616917979133207384702966524
EPS in Rs4.514.954.376.273.063.251.432.413.756.9612.7317.529.48
Dividend Payout %31%30%34%29%36%34%42%32%76%43%30%30%

Rashtriya Chemicals & Fertilizers Ltd (RCF) Profit & Loss Yearly Chart

Rashtriya Chemicals & Fertilizers Ltd (RCF) 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:17%
5 Years:23%
3 Years:41%
1 Year:41%
Return on Equity
10 Years:11%
5 Years:13%
3 Years:17%
Last Year:21%

Rashtriya Chemicals & Fertilizers Ltd (RCF) 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

Rashtriya Chemicals & Fertilizers Ltd (RCF) 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

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%

Rashtriya Chemicals & Fertilizers Ltd (RCF) Financial Efficiency Indicators Chart

Rashtriya Chemicals & Fertilizers Ltd (RCF) Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs0.78%0.78%0.86%1.04%1.20%1.57%2.95%3.07%2.97%2.37%2.27%2.55%
DIIs3.27%1.97%0.46%0.30%0.31%0.30%0.30%0.66%1.13%1.17%0.35%0.34%
Public20.95%22.25%23.68%23.66%23.49%23.12%21.75%21.27%20.88%21.46%22.37%22.10%
No. of Shareholders1,79,1232,26,0712,40,9762,35,2302,34,7512,25,8072,35,5192,23,0872,15,6492,33,5732,40,8782,40,298

Rashtriya Chemicals & Fertilizers Ltd (RCF) Shareholding Pattern Chart

No. of Rashtriya Chemicals & Fertilizers Ltd (RCF) Shareholders

Rashtriya Chemicals & Fertilizers Ltd (RCF) Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Smallcap 250 Index Fund535660.130.69
SBI Nifty Smallcap 250 Index Fund418480.130.54
ICICI Prudential Nifty Smallcap 250 Index Fund220860.130.28
HDFC NIFTY Smallcap 250 ETF112730.130.15
HDFC Nifty Smallcap 250 Index Fund92580.140.12
Motilal Oswal Nifty 500 Index Fund58450.010.08
Edelweiss Nifty Smallcap 250 Index Fund21730.130.03
ICICI Prudential S&P BSE 500 ETF14040.010.02
HDFC S&P BSE 500 ETF700.010
HDFC S&P BSE 500 Index Fund2110.010

Rashtriya Chemicals & Fertilizers Ltd (RCF) ROCE Trend

Rashtriya Chemicals & Fertilizers Ltd (RCF) EPS Trend

Rashtriya Chemicals & Fertilizers Ltd (RCF) 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

Rashtriya Chemicals & Fertilizers Ltd (RCF) Profitability Ratios (%)

Rashtriya Chemicals & Fertilizers Ltd (RCF) Liquidity Ratios

Rashtriya Chemicals & Fertilizers Ltd (RCF) Liquidity Ratios (%)

Rashtriya Chemicals & Fertilizers Ltd (RCF) Interest Coverage Ratios (X)

Rashtriya Chemicals & Fertilizers Ltd (RCF) Valuation Ratios

Fair Value / Intrinsic Value of Rashtriya Chemicals & Fertilizers Ltd (RCF)

Fair Value: ₹786.63

The stock is undervalued by 431.50% compared to the current price ₹148

*Investments are subject to market risks

Strength and Weakness of Rashtriya Chemicals & Fertilizers Ltd (RCF)

StrengthWeakness
  1. The company has higher reserves (2,612.15 cr) compared to borrowings (2,341.46 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (9.54 cr) and profit (376.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 14.30 and average Dividend Yield of 6.39%.
  2. The stock has a low average ROCE of 11.25%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 128.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 157.50, which may not be favorable.

Should I Buy Rashtriya Chemicals & Fertilizers Ltd (RCF) Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 24.42%)
      • 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. 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.
    4. 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.
    5. ✗ Stock P/E: 42.0 (Industry average Stock P/E: 34.02)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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