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Rashtriya Chemicals and Fertilizers Ltd Stock Analysis

Small Cap
Evaluated by 2019 users | BSE: 524230 | NSE: RCF |
Fertilizers

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...

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 and 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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Capital Employed 9.58%9.81%10.39%9.46%9.56%5.28%4.55%2.83%4.62%6.17%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,5246,4346,7746,5887,7138,0997,0997,2558,8859,6988,281
Y-o-Y Gr. Rt.-16.5%5.3%-2.8%17.1%5%-12.4%2.2%22.5%9.1%-
Adjusted EPS (Rs.) 44.595.425.466.223.163.121.452.515.086.76
Y-o-Y Gr. Rt.-14.8%18.1%0.7%13.9%-49.2%-1.3%-53.5%73.1%102.4%-
Book Value per Share (Rs.) 36.4639.3642.6945.4749.1451.0653.0253.155.0157.7560.51
Adjusted Net Profit 22025329930134317417280139280373
Net Op. Cash Flow (Rs. Cr.) 658-155-549314227-6331,5951,078-1,636-530-
Debt to Cash Flow from Ops 0.73-8-3.155.548.62-4.731.111.23-2.12-9.11-
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 and Fertilizers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.5%4.7%11%9.1%
Adjusted EPS 2.7%-4%17.6%102.4%
Book Value per Share 5.23.32.95
Share Price 5.2% 11.4% 6% 79.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Equity (%) 11.4512.113.212.3813.156.362.734.659.0111.43
Operating Profit Margin (%) 6.656.659.089.7110.655.295.282.984.695.558.85
Net Profit Margin (%) 3.993.934.414.574.452.152.431.11.562.894.5
Debt to Equity 0.240.570.730.690.721.060.60.451.141.510.31
Working Capital Days 143150196213195233272226222265165
Cash Conversion Cycle 557712416015418921616616217465
Entity Percentage Holding
Promoters 75.00%
Institutions 1.32%
Non-Institutions 23.68%
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 and Fertilizers Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Rashtriya Chemicals and 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 and Fertilizers Ltd's performance infers:

Rashtriya Chemicals and Fertilizers Ltd earnings have declined by -4%, whereas share price has appreciated 11.4% 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 and Fertilizers Ltd share prices over the last 10 years. Here is what we found out:

Rashtriya Chemicals and Fertilizers Ltd share price has appreciated 1.3% annually over the past ten years.

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,

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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