Rashtriya Chemicals & Fertilizers Ltd. (RCF) AI Stock Analysis

Rashtriya Chemicals & Fertilizers Ltd.

(NSE:RCF)

Select Model

Rating:59Neutral

Price Target:INR 98.00▲(0.01% Upside)

Action:reiterated

Date:08/24/26

Rashtriya Chemicals & Fertilizers earns a moderate score of 59. The primary strengths are its attractive valuation (modest P/E and decent dividend yield) and a solid balance sheet that supports steady asset growth. However, these factors are notably offset by a severe technical downtrend and significantly negative cash flows in the recent period. While deeply oversold technicals might cushion further declines, the company's thin operating margins and inability to convert income into core cash present significant long-term operational risks.

Positive Factors

Revenue GrowthThe return to measurable revenue growth indicates improving sales momentum after a stagnant prior year. If sustained across fertilizer and chemical products, higher volumes can support better absorption of fixed costs and strengthen the company’s earnings base over the next several quarters.

Negative Factors

Weak Cash GenerationNegative operating and free cash flow weakens the quality of reported earnings and can reduce internally generated funding for operations, investment, or shareholder returns. The sharp reversal from FY2025 and choppy multi-year pattern indicate that cash conversion remains unreliable.

Rashtriya Chemicals & Fertilizers Ltd. (RCF) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 54.51B
Dividend Yield: 2.40%
Average Volume (3M): 77.48K
Price to Earnings (P/E): 12.1
Beta (1Y): 1.62
Revenue Growth: 17.52%
EPS Growth: 56.09%
Country: India
Employees: 2,668
Sector: General
Sector Strength: 55
Industry: Agricultural Inputs

Rashtriya Chemicals & Fertilizers Ltd. Business Overview & Revenue Model

Company Description

Rashtriya Chemicals and Fertilizers Limited manufactures, markets, and sells fertilizers and industrial chemicals in India. The company operates through Fertilizers, Industrial Chemicals, and Trading segments. It offers various fertilizers, including...

How the Company Makes Money

RCF makes money primarily by manufacturing and selling fertilizers and, to a lesser extent, industrial chemicals. Its core revenue stream is fertilizer sales in India, where it sells urea and other nutrient products (e.g., complex fertilizers) throug...

Rashtriya Chemicals & Fertilizers Ltd. Financial Statement Overview

Summary

Mixed financial profile showing top-line revenue growth and a stable balance sheet with manageable leverage (debt-to-equity of 0.81). However, the company struggles with historically thin profit margins and significant negative operating and free cash flows in the latest period, pointing to substantial working capital challenges.

Income Statement

68Positive

Balance Sheet

78Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	186.95B	184.80B	169.34B	169.81B	78.83B	53.14B
Gross Profit	48.25B	70.30B	66.50B	-37.09B	-112.35B	62.82B
EBITDA	12.17B	11.95B	8.46B	7.12B	16.57B	12.44B
Net Income	4.47B	4.27B	2.42B	2.25B	9.66B	7.02B
Balance Sheet
Total Assets	0	167.01B	112.67B	114.56B	97.05B	105.31B
Cash, Cash Equivalents and Short-Term Investments	1.53B	39.22B	12.00B	1.56B	113.00M	11.08B
Total Debt	0	41.28B	27.62B	32.97B	18.77B	29.79B
Total Liabilities	-51.21B	115.80B	65.21B	68.50B	51.15B	66.49B
Stockholders Equity	51.21B	51.21B	47.45B	46.06B	45.90B	38.82B
Cash Flow
Free Cash Flow	6.48B	-15.47B	15.36B	-9.05B	4.02B	-7.62B
Operating Cash Flow	12.93B	-4.71B	23.64B	-4.22B	7.87B	-5.92B
Investing Cash Flow	-10.67B	-12.99B	-6.81B	-4.64B	-3.16B	-3.79B
Financing Cash Flow	-1.41B	9.08B	-8.53B	10.32B	-15.60B	5.99B

Rashtriya Chemicals & Fertilizers Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price97.99

Price Trends

50DMA107.80Negative

100DMA117.43Negative

200DMA121.46Negative

Market Momentum

MACD-3.83Positive

RSI38.43Neutral

STOCH24.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCF, the sentiment is Negative. The current price of 97.99 is below the 20-day moving average (MA) of 101.22, below the 50-day MA of 107.80, and below the 200-day MA of 121.46, indicating a bearish trend. The MACD of -3.83 indicates Positive momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RCF.

Rashtriya Chemicals & Fertilizers Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RCF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CHAMBLFERT	67Neutral	INR 141.97B	7.65	―	2.99%	15.58%	10.17%
IN:COROMANDEL	61Neutral	INR 500.13B	27.98	―	0.64%	23.50%	-18.96%
IN:RCF	59Neutral	INR 51.67B	12.05	―	2.40%	17.52%	56.09%
IN:PARADEEP	56Neutral	INR 133.92B	16.34	―	1.11%	31.35%	-27.03%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:NFL	54Neutral	INR 28.78B	8.07	―	1.73%	23.27%	137.75%
IN:ZUARI	49Neutral	INR 7.76B	0.83	―	―	-43.98%	268.95%

* General Sector Average

Performance Comparison

IN:RCF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RCF	Rashtriya Chemicals & Fertilizers Ltd.	97.40	-52.34	-34.95%
IN:CHAMBLFERT	Chambal Fertilisers & Chemicals Ltd.	368.00	-101.70	-21.65%
IN:COROMANDEL	Coromandel International Limited	1729.80	-426.20	-19.77%
IN:NFL	National Fertilizers Ltd.	60.16	-33.81	-35.98%
IN:PARADEEP	Paradeep Phosphates Ltd.	135.00	-31.56	-18.95%
IN:ZUARI	Zuari Agro Chemicals Ltd.	182.65	-63.40	-25.77%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 24, 2026

Rashtriya Chemicals & Fertilizers Ltd. AI Stock Analysis