RCF
EDIT- 1st, 2nd, 3rd, 4th and 5th indicates attempts to break the trendline and not the date. The dates ( in MM/YYYY) are written below the attempt number.
Rashtriya Chemicals and Fertilizers Limited (RCF) manufactures and markets various kinds of fertilizers such as urea, bio-fertilizers, micro-nutrients, water soluble fertilizers, soil conditioners etc.
- TTM EPS: 11.28
- TTM PE: 8.39
- Sector PE: 17.42
- Book Value Per Share: 60.42
- P/B: 1.57
- Face Value: 10
- Mkt Cap (Rs. Cr.): 5,218
- Dividend Yield: 3.15
Some Positves:
- Rising Net Cash Flow and Cash from Operating activity
- Company with high TTM EPS Growth
- Strong Annual EPS Growth
- New 52 Week High
- Effectively using its capital to generate profit - RoCE improving in last 2 years
- Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year
- Efficient in managing Assets to generate Profits - ROA improving since last 2 year
- Increasing Revenue every Quarter for the past 4 Quarters
- Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
- Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
- Annual Net Profits improving for last 2 years
- Book Value per share Improving for last 2 years
- Company with Zero Promoter Pledge
- FII / FPI or Institutions increasing their shareholding
- Stock gained more than 20% in one month
- Strong Momentum: Price above short, medium and long term moving averages
Some Negatives:
- Over the last 5 years, revenue has grown at a yearly rate of 0.23%, vs industry avg of 7.19%
- Over the last 5 years, net income has grown at a yearly rate of 17.29%, vs industry avg of 31.88%
- Over the last 5 years, market share decreased from 8.45% to 6.02%
- If sanctions over Russia are withdrawn then it may have a negative impact on Indian fertilizer companies.
My Opinion: GoI is selling stake in RCF & NFL to reach Rs 23k crore disinvestment target. The company has double cash reserve than debt. Russia and Ukraine produce around 20-25% of global fertilizer production. The supply has taken hit and this presents a good opportunity for Indian companies. The volume indicates that the price will breakout the trendline this time. First target 100 above that 135-140 is very much possible in next 3 months.
NOT A RECOMMENDATION. JUST FOR EDUCATION. Thanks.
Trade active:
Broken the resistance line. 100 achieved. 125 next target.
Trade active:
23/04/2022: CMP 107
Trade active:
CMP 169