Rashtriya Chemicals and Fertilizers Valuation

Q: What is the Fair Price of RCF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RCF (₹152.63) is trading above our estimate of [[fair value]] (₹16.78)

Is RCF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RCF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCF (₹152.63) is trading above our estimate of fair value (₹16.78)

Significantly Below Fair Value: RCF is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCF?

Key metric: As RCF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RCF. This is calculated by dividing RCF's market cap by their current earnings.
What is RCF's PE Ratio?
PE Ratio	42.9x
Earnings	₹1.96b
Market Cap	₹84.20b

RCF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	16.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does RCF's PE Ratio compare to its peers?

The above table shows the PE ratio for RCF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20.4x
507717 Dhanuka Agritech	25x	16.1%	₹67.6b
PARADEEP Paradeep Phosphates	23.6x	27.4%	₹85.7b
GNFC Gujarat Narmada Valley Fertilizers & Chemicals	18.3x	n/a	₹82.4b
500690 Gujarat State Fertilizers & Chemicals	14.6x	n/a	₹77.2b
RCF Rashtriya Chemicals and Fertilizers	42.9x	n/a	₹84.2b

Price-To-Earnings vs Peers: RCF is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does RCF's PE Ratio compare vs other companies in the IN Chemicals Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap
ZUARI Zuari Agro Chemicals	5x	n/a	US$105.84m
NAGAFERT Nagarjuna Fertilizers and Chemicals	0.3x	n/a	US$66.73m
UNIVPHOTO Universus Photo Imagings	4.9x	n/a	US$48.64m
526773 Pressure Sensitive Systems (India)	0.6x	n/a	US$7.19m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RCF is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the Indian Chemicals industry average (31.6x).

Price to Earnings Ratio vs Fair Ratio

What is RCF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	42.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RCF's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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