Check Before You Invest : Rashtriya Chemicals and Fertilizers Ltd

Snapshot

Q.1 Which industry/sub-sector does Rashtriya Chemicals and Fertilizers Ltd belong to?

Rashtriya Chemicals and Fertilizers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q.2 Is Rashtriya Chemicals and Fertilizers Ltd a good quality company?

Rashtriya Chemicals and Fertilizers Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Rashtriya Chemicals and Fertilizers Ltd undervalued or overvalued?

Rashtriya Chemicals and Fertilizers Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Rashtriya Chemicals and Fertilizers Ltd a good buy now?

Rashtriya Chemicals and Fertilizers Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd revenue growth is -0.3% for FY-2025, which is below its 5-year CAGR of 11.79%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Return on capital employed is 7.62% for FY-2025, which is below its 5-year historical median of 10.57%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Return on Asset is 2.12%, which is below its 5-year historical median of 4.26%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Return on equity is 5.16% for FY-2025, which is below its 5-year historical median of 11.67%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Cash conversion cycle is 68 days, in line with its 5-year historical median of 68 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.49	1.49
ROE	5.16	11.67
ROCE	7.62	10.57
Cash Conversion Cycle	68 days	68 days

Q.6 Gross Profit margin of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025, which is below its 5-year median of 6.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.97% for FY-2025, which is below its 5-year median of 7.31% indicating decreasing margins.

Q.8 Net Profit Margin of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Net Profit Margin is 1.43% for FY-2025, is below with its 5-year median of 4.51%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.5	6.5
Operating Profit Margin	3.97	7.31
Net Profit Margin	1.43	4.51

Q.9 Debt to Equity ratio of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Debt-to-Equity ratio is 0.58, which is above with the industry average of 0.44, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rashtriya Chemicals and Fertilizers Ltd?

Rashtriya Chemicals and Fertilizers Ltd Debt to cash flow from operations is 1.16, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rashtriya Chemicals and Fertilizers Ltd?

Promoters hold 75.00% of the Rashtriya Chemicals and Fertilizers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rashtriya Chemicals and Fertilizers Ltd vs industry peers?

Rashtriya Chemicals and Fertilizers Ltd revenue CAGR is 11.79%, compared to the industry median CAGR of 10.11%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-0.3	10.1
Gross Profit Growth	18.2	12.3
Operating Profit Growth	33.4	7
Net Profit Growth	6.1	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.49	1.2
ROE	5.16	9.46
ROCE	7.62	9.34
Cash Conversion Cycle (days)	68	68

Valuation & price assessment

Q.1 Stock return of Rashtriya Chemicals and Fertilizers Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	10.7%	12.1%	5.4%	-6.4%

Q.3 Valuation ratios of Rashtriya Chemicals and Fertilizers Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	22.72	12.18	13.55
Price to Book	1.42	1.46	1.43
Price to Sales	0.43	0.45	0.63
EV to EBITDA	8.85	6.85	7.82

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