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Rashtriya Chemicals & Fertilizers Ltd. Stock Analysis

Small Cap
Evaluated by 1871 users | BSE: 524230 | NSE: RCF |
Fertilizers
Rashtriya Chemicals and Fertilizers (RCF) was incorporated in the year 1978 under Companies Act 1956. RCF was formed after the reorganisation of FCI into five companies. Till 1992, the company was a wholly-owned PSU. During 1992 and 1993, 7.5% of the equity was disinvested to financial...

Analysis of Financial Track Record

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 & Fertilizers Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 7.19%9.58%9.81%10.39%9.46%9.56%5.28%4.55%2.83%4.62%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,6425,5246,4346,7746,5887,7138,0997,0997,2558,885
Y-o-Y Gr. Rt.--2.1%16.5%5.3%-2.8%17.1%5%-12.4%2.2%22.5%
Adjusted EPS (Rs.) 3.1944.595.425.466.223.163.121.452.51
Y-o-Y Gr. Rt.-25.4%14.8%18.1%0.7%13.9%-49.2%-1.3%-53.5%73.1%
Book Value per Share (Rs.) 33.336.4639.3642.6945.4749.1451.0653.0253.155.01
Adjusted Net Profit 17622025329930134317417280139
Net Op. Cash Flow (Rs. Cr.) 638658-155-549314227-6331,5951,078-1,636
Debt to Cash Flow from Ops 2.090.73-8-3.155.548.62-4.731.111.23-2.12
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Rashtriya Chemicals & Fertilizers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.2%6.2%3.1%22.5%
Adjusted EPS -2.6%-14.4%-7.4%73.1%
Book Value per Share 5.73.92.53.6
Share Price -5.2% -2.3% -19.7% -11%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 10.0211.4512.113.212.3813.156.362.734.65
Operating Profit Margin (%) 4.016.656.659.089.7110.655.295.282.984.72
Net Profit Margin (%) 3.123.993.934.414.574.452.152.431.11.56
Debt to Equity 0.720.240.570.730.690.721.060.60.451.14
Working Capital Days 187143150196213195233272226222
Cash Conversion Cycle 645577124160154189216166160
Entity Percentage Holding
Promoters 75.00%
Institutions 4.22%
Non-Institutions 20.78%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Rashtriya Chemicals & Fertilizers Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Rashtriya Chemicals & Fertilizers Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Rashtriya Chemicals & Fertilizers Ltd.'s performance infers:

Rashtriya Chemicals & Fertilizers Ltd. earnings have declined by -14.4%, whereas share price has depreciated -2.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Rashtriya Chemicals & Fertilizers Ltd. share prices over the last 10 years. Here is what we found out:

Rashtriya Chemicals & Fertilizers Ltd. share price has depreciated -7.9% annually over the past ten years.

Rashtriya Chemicals and Fertilizers (RCF) was incorporated in the year 1978 under Companies Act 1956. RCF was formed after the reorganisation of FCI into five companies.

Till 1992, the company was a wholly-owned PSU. During 1992 and 1993, 7.5% of the equity was disinvested to financial institutions, public, etc. RCF has been a MoU signing company since 1988-89.

RCF is one of the leading producers of fertilizers in India. Sujala, Suphala 15:15:15, Suphala 20:20:0, Ujjwala, Microla

Rashtriya Chemicals and Fertilizers (RCF) was incorporated in the year 1978 under Companies Act 1956. RCF was formed after the reorganisation of FCI into five companies.

Till 1992, the company was a wholly-owned PSU. During 1992 and 1993, 7.5% of the equity was disinvested to financial institutions, public, etc. RCF has been a MoU signing company since 1988-89.

RCF is one of the leading producers of fertilizers in India. Sujala, Suphala 15:15:15, Suphala 20:20:0, Ujjwala, Microla and Biola are its major fertilizer brands. All the products can be used with different soil types and in various climatic conditions.

The company pioneered the manufacture of basic chemicals such as methanol, sodium nitrate, sodium nitrite, ammonium bicarbonate, methylamines, dimethyl formamide, and dimethylacetamide in India.

Today RCF is the only manufacturer of DMF in India. Product characteristics, consumer needs, economy to the consumers and safety are the primary considerations in determining the type of packaging and modes of transportation for each of the products.

The company owns two complexes, one at Trombay, Mumbai and the other at Thal, Raigad district, Maharashtra. The company has its marketing headquarters at Mumbai.

RCF also undertakes project management and renders O&M services to its clients in fertilizer/chemicals industry

RCF offer turnkey projects, which involve total management, whose services includes preparation of project report, budgetary offer detailed engineering, know-how, licence tie-up along with performance guarantee, civil and mechanical erection with instrumentation including procurement of equipment, commissioning, guarantee trial runs and successful operation thereafter if desired.

The company also enters into joint ventures to conduct feasibility studies in area of fertilizers, industrial chemicals and petrochemicals.

Products

  • Industrial products
  • Fertilizer Products
  • Soil testing - The company offers service to help diagnose soil health and evolve soil specific and crop specific solutions.
  • RCF Sheti Patrika - The company publishes a monthly farm magazine Trombay Sheti Patrika (TSP).

Awards - RCF has won several awards for pollution control and clean technology. Notable awards being the Indira Gandhi Memorial award for Pollution Control and the Rajiv Gandhi Award for Clean Technology awarded to Thal.

The company was rated ‘Excellent’ for the years 1989-90, 1997-98, 1998-99, 1999-2000, 2000-01, 2002-03 and 2003-04 and ‘Very Good’ for the remaining years.

It also received merit certificate for excellence in the achievement of MoU targets for the year 1998-99, 1999-2000, 2000-01 and 2002-03.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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