Monday, June 27, 2016

Rashtriya Chemicals & Fertilizers Ltd (RCF) @45.65

1. Rashtriya Chemicals & Fertilizers Ltd is a 10 rupee face value Chemicals & Fertilizers company.
Short Brief of RCF:-
Rashtriya Chemicals and Fertilizers Limited (RCF), a Government of India Undertaking, is a leading fertilizer and chemical manufacturing company with about 80% 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 government of India has accorded "Mini-Ratna" status to RCF.
RCF  is a household name in rural India with brands "Ujjwala" (urea) and "Suphala" (complex fertilizers) which carry a high brand equity. RCF has countrywide marketing network in all the key states. Apart from the own manufactured products, the Company is also engaged in marketing of SSP and imported fertilizer inputs like, DAP, MOP & NPK fertilizers. Besides fertilizer products, RCF also produces almost twenty industrial chemicals that are essential for the manufacture of dyes, solvents, leather, pharmaceuticals and a host of other industrial products.
 RCF also pioneered the manufacture of basic chemicals such a Methanol, Ammonia, Ammonium Nitrate, Sodium Nitrate, Sodium Nitrite, Ammonium Bicarbonate, Methylamines, Dimethyl Formamide and Dimethyl acetamide, Formic Acid, Argon in India. Today RCF is the only manufacturer of Dimethyl Formamide in India.
The Company poised for growth through the implementation of major projects which will help reduce the demand-supply gap of fertilizer in the country. The company is engaged in developing a plan for 1.27 million MT Urea plant at Thal and another of 1.27 million MT Urea plant based on coal gasification at Talcher. Apart from the proposed fertilizer projects in India, RCF is looking for opportunities for setting up Joint Venture Projects in resource-rich countries.
2. Year high of Rashtriya Chemicals & Fertilizers Ltd is 61.40 year low was 35.25 and the stock traded at 45.65, Year high/ low ratio is stable below 2.  
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3. Promoters of Rashtriya Chemicals & Fertilizers Ltd hold 80 %  shares and as I already point out earlier that RCF is a Govt of India undertaking and no any share pledged by promoters.  
 See the full list of public shareholding including FII and DII here:-
DII & FII Holding RCF. 
4.Rashtriya Chemicals & Fertilizers Ltd RCF pay INR 1.10 to 1.80 per share dividend since last five years  See this dividend history:-.
EX DatePurpose
19/08/2015Final Dividend 1.80
11/09/2014Final Dividend 1.50
19/08/2013Final Dividend 1.50
17/08/2012Final Dividend 1.40
13/09/2011Final Dividend 1.10

5. The base price of Rashtriya Chemicals & Fertilizers Ltd is 47.60 So So CMP 45.65 is still 4.09% below from base price.
 Now I think the stock is ready to cross base price from downside to the upside which is a strong buy signal as per my book.
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6. No any bonus issue right issue and bulk deals are recorded in last two year which shows price stability.
7. Rashtriya Chemicals & Fertilizers Ltd net sale per share of FY 15-16 is 156.78.
8. So this high net sale per share indicates a real future valuation for this PSU stock
9. Book value of Rashtriya Chemicals & Fertilizers Ltd is 52.58 Book value is also higher than CMP, So in book value term RCF is a value buy at CMP.
8. Rashtriya Chemicals & Fertilizers Ltd is a good dividend paying PSU fertilizer company which take this year good monsoon advantage and may be cross his fundamental target price of 77.09
9. 200 DMA of Rashtriya Chemicals & Fertilizers Ltd is 44.77:-

Simple Moving Averages of RCF

DaysBSENSE
3045.2345.19
5045.6345.61
15043.9843.97
20044.7744.77
So at CMP 45.62 RCF traded over his 200 DMA & Technically sound for trading purpose (as well as investment purpose) here I provide last three-year closing price chart of RCF 
Click Here to Download Last 3 Years Closing Price and Graph
10. Fundamental target price of Rashtriya Chemicals & Fertilizers Ltd is 77.09 ( Read my book to learn how to calculate fundamental target price of any stock.)
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11. Disclaimer: - This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability accepted for any content in “this research report.” The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
12.Discloser: - I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 My Wife hold 67 shares of Rashtriya Chemicals & Fertilizers Ltd so my personal interest is included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Rashtriya Chemicals & Fertilizers Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Rashtriya Chemicals & Fertilizers Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Rashtriya Chemicals & Fertilizers Ltd). 6. I have been not engaged in market making activity for the subject company (Rashtriya Chemicals & Fertilizers Ltd).



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