NSEI:RCF

Stock Analysis Report

Rashtriya Chemicals and Fertilizers

Executive Summary

Rashtriya Chemicals and Fertilizers Limited manufactures and sells fertilizers and industrial chemicals primarily in India.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.

Share Price & News

How has Rashtriya Chemicals and Fertilizers's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.5%

RCF

2.5%

IN Chemicals

2.3%

IN Market


1 Year Return

-23.1%

RCF

12.5%

IN Chemicals

0.3%

IN Market

Return vs Industry: RCF underperformed the Indian Chemicals industry which returned 12.5% over the past year.

Return vs Market: RCF underperformed the Indian Market which returned 0.3% over the past year.


Shareholder returns

RCFIndustryMarket
7 Day10.5%2.5%2.3%
30 Day5.7%5.5%2.2%
90 Day-14.0%7.1%-2.7%
1 Year-21.8%-23.1%13.8%12.5%2.3%0.3%
3 Year8.2%4.4%34.8%30.7%20.7%14.7%
5 Year-1.7%-10.4%127.3%114.5%41.4%28.2%

Price Volatility Vs. Market

How volatile is Rashtriya Chemicals and Fertilizers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rashtriya Chemicals and Fertilizers undervalued compared to its fair value and its price relative to the market?

22.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: RCF (₹48.85) is trading above our estimate of fair value (₹5.41)

Significantly Undervalued: RCF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RCF is poor value based on its PE Ratio (22.9x) compared to the Chemicals industry average (10.4x).

PE vs Market: RCF is poor value based on its PE Ratio (22.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate RCF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCF is good value based on its PB Ratio (0.9x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Rashtriya Chemicals and Fertilizers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCF's forecast earnings growth (25.6% per year) is above the savings rate (7.6%).

Earnings vs Market: RCF's earnings (25.6% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if RCF's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if RCF's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if RCF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rashtriya Chemicals and Fertilizers performed over the past 5 years?

-25.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RCF's earnings have declined by -25.9% per year over the past 5 years.

Accelerating Growth: RCF's earnings growth over the past year (28.6%) exceeds its 5-year average (-25.9% per year).

Earnings vs Industry: RCF earnings growth over the past year (28.6%) exceeded the Chemicals industry 9.9%.


Return on Equity

High ROE: RCF's Return on Equity (3.9%) is considered low.


Return on Assets

ROA vs Industry: RCF's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: RCF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Rashtriya Chemicals and Fertilizers's financial position?


Financial Position Analysis

Short Term Liabilities: RCF's short term assets (₹63.1B) exceeds its short term liabilities (₹47.1B)

Long Term Liabilities: RCF's short term assets (63.1B) exceeds its long term liabilities (11.8B)


Debt to Equity History and Analysis

Debt Level: RCF's debt to equity ratio (109.3%) is considered high

Reducing Debt: RCF's debt to equity ratio has increased from 72.1% to 109.3% over the past 5 years.

Debt Coverage: RCF's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: RCF's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: RCF has a high level of physical assets or inventory.

Debt Coverage by Assets: RCF's debt is covered by short term assets (assets are 1.906290x debt).


Next Steps

Dividend

What is Rashtriya Chemicals and Fertilizers's current dividend yield, its reliability and sustainability?

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RCF's dividend (1.57%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: RCF's dividend (1.57%) is low compared to the top 25% of dividend payers in the Indian market (2.5%).

Stable Dividend: RCF's dividend payments have been volatile in the past 10 years.

Growing Dividend: RCF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), RCF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Rashtriya Chemicals and Fertilizers's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average board tenure


CEO

Shriniwas Mudgerikar 0

0yrs

Tenure

0

Shri Shriniwas Chandrastiekhar Mudgerikar has been Chairman and Managing Director of Rashtriya Chemicals and Fertilizers Limited since October 01, 2019. Shri Mudgerikar has remained an Indian Railway Traff ...


Board Age and Tenure

1.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: RCF's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Shashikant Salve (62yo)

    Chief Engineer of Chem

    • Tenure: 0yrs
  • Arun Nawade

    Executive Director of HR & CSO

    • Tenure: 0yrs
  • Sudhir Panadare (58yo)

    Director of Technical & Whole Time Director

    • Tenure: 1.8yrs
    • Compensation: ₹5.48m
  • Milind Deo

    Executive Director of Operation

    • Tenure: 0yrs
  • Nuhu Kurane

    Executive Director of Marketing

    • Tenure: 0yrs
  • Abhay Lonkar

    Chief General Manager of Utility & Projects-Thal

    • Tenure: 0yrs
  • Jai Sharma

    Company Secretary & Compliance Officer

    • Tenure: 2yrs
    • Compensation: ₹2.36m
  • Umesh Dongre (58yo)

    Director of Finance

    • Tenure: 1.7yrs
    • Compensation: ₹4.23m
  • Siddharth Potpose

    General Manager of HR & Administration

    • Tenure: 0yrs
  • Shriniwas Mudgerikar

    Chairman & MD

    • Tenure: 0yrs

Board Members

  • Koppurath Thankachen (57yo)

    Director of Marketing & Whole Time Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.82m
  • Suryanarayana Simhadri (52yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹555.00k
  • Sudhir Panadare (58yo)

    Director of Technical & Whole Time Director

    • Tenure: 1.8yrs
    • Compensation: ₹5.48m
  • Alka Tiwari (54yo)

    Government Nominee Director

    • Tenure: 2.6yrs
  • Umesh Dongre (58yo)

    Director of Finance

    • Tenure: 1.7yrs
    • Compensation: ₹4.23m
  • Gurveen Sidhu (51yo)

    Government Nominee Director

    • Tenure: 1.4yrs
  • Shambhu Kumar (47yo)

    Non-Official Independent Director

    • Tenure: 0.6yrs
    • Compensation: ₹50.00k
  • Anil Singh (67yo)

    Non-Official Independent Director

    • Tenure: 0.6yrs
    • Compensation: ₹25.00k
  • Shriniwas Mudgerikar

    Chairman & MD

    • Tenure: 0yrs

Company Information

Rashtriya Chemicals and Fertilizers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rashtriya Chemicals and Fertilizers Limited
  • Ticker: RCF
  • Exchange: NSEI
  • Founded: 1978
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: ₹26.012b
  • Shares outstanding: 551.69m
  • Website: https://www.rcfltd.com

Number of Employees


Location

  • Rashtriya Chemicals and Fertilizers Limited
  • Priyadarshini Building
  • 10th floor
  • Mumbai
  • Maharashtra
  • 400022
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524230BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1998
RCFNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1998

Biography

Rashtriya Chemicals and Fertilizers Limited manufactures and sells fertilizers and industrial chemicals primarily in India. The company operates through Fertilizers, Industrial Chemicals, and Trading segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:44
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.