Rashtriya Chemicals and Fertilizers Ltd Stock Analysis

BSE: 524230 | NSE: RCF | Fertilizers | Mid Cap

BSE Share Price 23-Sep-2022 18:01
99.95 -3.70 (-3.57%)

DeciZen - Make an Informed Decision on RCF

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

RCF Price Chart

P/E Ratio (SA) :
7.21
Market Cap :
5,514.1 Cr.
52-wk low :
66.5
52-wk high :
112.7
Bole Toh?

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

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rashtriya Chemicals and Fertilizers Ltd is a below average quality company.

2. Is Rashtriya Chemicals and Fertilizers Ltd undervalued or overvalued?

The key valuation ratios of Rashtriya Chemicals and Fertilizers Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

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

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Rashtriya Chemicals and Fertilizers Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of RCF:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rashtriya Chemicals and Fertilizers Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 9.8%10.4%9.5%9.6%5.3%4.6%2.8%4.6%6.2%7.2%-
Value Creation Index -0.3-0.3-0.3-0.3-0.6-0.7-0.8-0.7-0.6-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6,4346,7746,5887,7138,0997,0997,2558,8859,6988,28115,378
YoY Gr. Rt. %-5.3%-2.8%17.1%5%-12.4%2.2%22.5%9.1%-14.6%-
Adj EPS 4.65.45.56.23.23.11.52.55.16.413.9
YoY Gr. Rt. %-18.1%0.7%13.9%-49.2%-1.3%-53.5%73.1%102.4%26.4%-
BVPS (₹) 39.442.745.549.151.15353.15557.860.575.1
Adj Net Profit 25329930134317417280139280354765
Cash Flow from Ops. -155-549314227-6331,5951,078-1,636-5225,221-
Debt/CF from Ops. -8-3.25.58.6-4.71.11.2-2.1-9.20.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 2.8%0.5%4.5%-14.6%
Adj EPS 3.8%15.2%64.2%26.4%
BVPS 4.93.54.54.8
Share Price 5.3% 2.6% 25.7% 21%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 12.113.212.413.26.362.74.7910.920.5
Op. Profit Mgn % 6.79.19.710.75.35.334.75.68.57.7
Net Profit Mgn % 3.94.44.64.52.22.41.11.62.94.35
Debt to Equity 0.60.70.70.71.10.60.51.11.50.6-
Working Cap Days 1501962131952332722262222652280
Cash Conv. Cycle 771241601541892161661621741270

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.50%

Net Profit is growing at healthy rate in last 3 years 64.21%

Debt to equity has declined versus last 3 years average to 0.62

Sales growth is good in last 4 quarters at 69.94%

Sales growth has been subdued in last 3 years 4.51%

Latest Financials - Rashtriya Chemicals and Fertilizers Ltd.

Standalone Consolidated
TTM EPS (₹) 13.9 14
TTM Sales (₹ Cr.) 15,378 15,378
BVPS (₹.) 75.1 75
Reserves (₹ Cr.) 3,593 3,586
P/BV 1.33 1.33
PE 7.21 7.13
From the Market
52 Week Low / High (₹) 66.45 / 112.65
All Time Low / High (₹) 4.00 / 150.35
Market Cap (₹ Cr.) 5,514
Equity (₹ Cr.) 551.7
Face Value (₹) 10
Industry PE 10.2

Management X-Ray of RCF :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of RCF

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Rashtriya Chemicals and Fertilizers Ltd

Rashtriya Chemicals & Fertilizers Limited (RCF), a ‘Mini-Ratna’, is a leading fertilizers and chemicals manufacturing company with about 75% of its equity held by the Government of India. It has two operating units, one at Trombay in Mumbai and the other at Thal, Raigad district, about 100 KM from Mumbai.

The “Make in India” mission was launched by the Hon’ble Prime Minister, Shri Narendra Modi in September 2014 with an objective to give the Indian economy sustainability and global recognition. The government is committed to transforming India into a global manufacturing hub, while ensuring that manufactured goods have ‘zero defect’ and ‘zero effect’ on the environment.

In consonance with the PM’s mission and Vision 2022, RCF endeavors to be one of the main driving forces behind India’s sustainable agriculture. RCF is one of the earliest units set up in the country with a vision of growth in fertilizer production for food security. The company was the first in the country to produce complex fertilizer which was introduced in the market in 1967 under the brand name “Suphala”.  RCF took the lead in the country in setting up mega size fertilizer complex at Thal which was commissioned in the year 1985 and after that many more domestic mega plants followed suit. The company also made significant contribution in the great “Green Revolution” of the nation. RCF has also pioneered the manufacture of basic chemicals such as Methanol, Ammonia, Ammonium Nitrate, Sodium Nitrate, Sodium Nitrite, Ammonium Bicarbonate, Methyl amines, Dimethyl Formamide, Dimethyl acetamide, Formic Acid, Argon in India.

Business area of the company

The company is engaged in the manufacturing and marketing of fertilizers and industrial chemicals. The company manufactures Urea, Complex Fertilizers, Biofertilizers, Micronutrients, 100 percent water soluble fertilizers, soil conditioners and a wide range of Industrial Chemicals.

Products:

Suphala: RCF produces complex fertilizers at its Trombay unit. They are commonly known as ‘Suphala’, which has almost become a generic name for NP/NPK complexes in the farming households of the country.

Biola: This multifaceted bio-fertilizer solublizes the fixed phosphorus in the soil and makes it available to the crops. Bacteria multiply very fast in the soil and this helps to improve the texture and structure of the soil. This also helps to enhance the growth of the crops and also induces resistance against various pests and diseases.

Ujjwala Neem Coated Urea: RCF’s Ujjwala Neem Coated Urea is a chemical fertilizer produced in white round prill form containing 46% nitrogen. It is 100% water soluble and is suitable for any type of soil or crop. It can be applied through sowing, broadcasting or spraying. Ujjwala Neem Coated Urea should be applied to different crops in two to three split doses.

Microla: This product helps to retain and achieve the quality of the produce and also ensures bumper yields.The composition of Microla varies in different states due to the requirement of various micronutrients in the particular soil of the state.

Awards

FY 2017-18

  • FICCI Award for “Efficiency in Water Usage in Chemical Sector” for the year 2016-17.
  • Certificate of Merit for “ICC Award for Excellence in Energy Conservation and Management” for the year 2015-16.
  • “Certificate of Merit Award” for the year 2016-17 for Corporate Fair Business Practices (CFBP) in large enterprises sector organized by Jamnalal Bajaj Institute of Management.
  • Green leaf award of International Fertiliser Association 2017 for “Excellence in safety Health and Environment.
  • Highest achiever award in Energy savings for PAT Cycle-I by Bureau of Energy Efficiency (BEE).
  • Five star green rating from Maharashtra Pollution Control Board (MPCB) for air quality for second consecutive year.
  • First prize for “Best plant performance award” amongst all Heavy Water Plants (HWP) for the year 2017.
  • National Safety Council (NSC) Award for Longest Accident free days for the year 2017.
  • First prize by Thane Municipal Corporation for “Vegetables Grown in Container” during exhibition for Saplings,Fruits and Vegetables grown in container.

FY 2018-19

  • Prestigious ‘31st CFBP- Jamanalal Bajaj Uchit Vyavahar Puraskar for Fair Business Practices’ for the year 2018 in the category of Manufacturing Enterprises - Large.
  • Governance Now 6th PSU Award in CSR category
  • Certificate of Merit for conservation of energy in Chemical Sector from Maharashtra Energy Development Agency (MEDA) for the year 2017-18.
  • 2nd Rank for Excellence in Suggestion Scheme Contest 2018 organized by INSSAN in the Fertilizer Industries Group.
  • Bombay Chamber of Commerce and Industry CIVIC AWARDS: Sustainable Environmental Initiatives”- 2017-18
  • ICC Award for Excellence in Environment Management 2017
  • Heavy Water Plant received National Safety Council, (Maharashtra Chapter) “Certificate of Merit” for Meritorious Performance in Industrial Safety for the year 2017.
  • First prize in 12th State Level Award for “State level Excellence in Energy Conservation & Management” for the year 2017-18 from Maharashtra Engery Development Agency (MEDA), Govt. of Maharashtra.
  • Five (5) Star Green rating for air quality for the year 2018-19 by Maharashtra Pollution Control Board for the third consecutive year.

FY 2019-20

  • Greentech Environment Award - 2019 for outstanding achievements in Environmental Management.
  • Trishul Quality Circle has won Gold Trophy in International Convention on Quality Circle (ICQCC’19) in Tokyo, Japan.
  • 1st Prize towards Energy conservation award in HT Industrial consumer category above 10 MVA during TPC’s consumer meet 2019.
  • ‘Certificate of Merit’ at 14th State Level Energy Conservation Award 2018-19 constituted by Maharashtra Energy Development Agency (MEDA).
  • R&D Unit has been awarded Renewal of Recognition as “IN-HOUSE R&D UNIT”, by the Ministry of Science & Technology, New Delhi.
  • FAI Award for Excellence in Safety for the year 2018-19.
  • I.C.C. Award for Excellence in Energy Conservation and Management for the year 2018.
  • National Safety Council India declared “Certificate of Appreciation” for RCF, Thal and “Certificate of Merit” for Heavy Water Plant Thal.
  • Award for Zero accident frequency rate and Longest accident free days for the year 2018 by National Safety Council -Maharashtra.
  • NSC-MH Certificate of Merit for Zero accident frequency rate for the year 2018 to Heavy Water Plant Thal.
  • Training Provider of The Year’ Award by National Awards for Excellence in Training and Development.
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