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

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Rashtriya Chemicals & Fertilizers Ltd.

(NSE:RCF)

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Rating:52Neutral

Price Target:INR 102.00▼(-6.28% Downside)

Action:reiterated

Date:08/24/26

Overall score is held back mainly by weak and inconsistent cash generation (negative FY2026 operating and free cash flow) alongside thin/volatile margins and a rising leverage trend. Technicals also weigh on the score with a clear downtrend and negative momentum. These are partially offset by a reasonable valuation (moderate P/E and ~2% dividend yield).

Positive Factors

Recent Revenue GrowthThe return to revenue growth in FY2026 indicates improved sales momentum after a flat prior year. If sustained, higher volume or realizations can support better absorption of operating costs and provide a stronger base for rebuilding profitability over the next several quarters.

Negative Factors

Weak Cash GenerationNegative operating and free cash flow weakens the quality of reported earnings and reduces internally generated funding for investment, debt service, or shareholder returns. The choppy multi-year pattern also suggests recurring working-capital or spending swings that may pressure liquidity.

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

Market Cap: INR 59.54B
Dividend Yield: 2.15%
Average Volume (3M): 84.35K
Price to Earnings (P/E): 13.5
Beta (1Y): 1.49
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 generates revenue primarily by manufacturing and selling fertilizers and industrial chemicals. Its core revenue stream comes from the domestic sale of fertilizers—most notably urea and other nitrogen/complex fertilizers—sold to agricultural custo...

Rashtriya Chemicals & Fertilizers Ltd. Financial Statement Overview

Summary

Income statement shows FY2026 revenue growth (+9.3%) and improving profitability versus FY2025, but margins remain thin and historically volatile. Balance sheet leverage is moderate but rising (debt-to-equity ~0.81 vs ~0.58). Cash flow is the key weakness: FY2026 operating and free cash flow turned negative with a choppy multi-year pattern, reducing earnings quality confidence.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

34Negative

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 SentimentNeutral

Last Price108.84

Price Trends

50DMA105.75Positive

100DMA115.92Negative

200DMA120.46Negative

Market Momentum

MACD-0.96Negative

RSI63.34Neutral

STOCH86.68Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCF, the sentiment is Neutral. The current price of 108.84 is above the 20-day moving average (MA) of 100.08, above the 50-day MA of 105.75, and below the 200-day MA of 120.46, indicating a neutral trend. The MACD of -0.96 indicates Negative momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 86.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 155.87B	8.19	―	2.82%	6.33%	2.61%
IN:COROMANDEL	65Neutral	INR 552.65B	32.01	―	0.55%	16.15%	-35.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RCF	52Neutral	INR 56.61B	13.46	―	2.15%	17.52%	56.09%
IN:ZUARI	49Neutral	INR 8.03B	4.89	―	―	-68.39%	-82.60%
IN:NFL	48Neutral	INR 31.28B	8.94	―	1.57%	23.27%	137.75%
IN:PARADEEP	46Neutral	INR 145.08B	17.55	―	1.04%	31.35%	-27.03%

* 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.	108.84	-40.22	-26.98%
IN:CHAMBLFERT	Chambal Fertilisers & Chemicals Ltd.	390.95	-63.20	-13.92%
IN:COROMANDEL	Coromandel International Limited	1993.20	-205.94	-9.36%
IN:NFL	National Fertilizers Ltd.	66.40	-24.77	-27.17%
IN:PARADEEP	Paradeep Phosphates Ltd.	143.70	-17.46	-10.83%
IN:ZUARI	Zuari Agro Chemicals Ltd.	197.70	-92.85	-31.96%

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