Rashtriya Chemicals & Fertilizers (RCF) Share Analysis

RCF’s share price dipped by 1.5% after disappointing Q2 results. Over the past six months, the stock has yielded a remarkable return of 17.45%, outperforming the benchmark Nifty50 index’s 5.71% return during the same period.

In Q2 of FY24, Rashtriya Chemicals & Fertilizers(RCF), a state-owned fertilizer company, reported an 80.5% decline in consolidated profit, amounting to Rs 51 crore. This decline can be attributed to a sharp decrease in operating numbers and lower revenue, with a 25.5% fall to Rs 4,155.2 crore compared to the previous fiscal year. The company’s EBITDA also experienced a significant decline of 73.9%, dropping to Rs 105.9 crore in this fiscal year’s Q2.

The decrease in profitability is further reflected in the EBITDA margin, which stood at 2.6% in the reporting quarter, down from 7.3% in the same period last fiscal year.

Rashtriya Chemicals and Fertilizers is predominantly owned by the Government of India, holding a 75% stake, followed by the public with a 22.11% stake. Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) own the remaining 2.55% and 0.34% stake in the company, respectively.

Despite the recent share price dip, the stock has delivered a strong return of 17.45% over the past six months, outperforming the benchmark Nifty50 index’s return of 5.71% during the same period.

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