RCF Upgraded to 'Hold' by MarketsMOJO, Shows Healthy Long-Term Growth

Rashtriya Chemicals & Fertilizers (RCF) is a midcap company in the fertilizer industry. The stock has recently been upgraded to a 'Hold' by MarketsMOJO on November 25, 2024. This upgrade is based on the company's healthy long-term growth, with net sales growing at an annual rate of 12.99% and operating profit at 35.64%.
Technically, the stock is currently in a mildly bullish range, with the trend improving from sideways on November 25, 2024. A key technical factor, the KST, has also been bullish since the same date.

In terms of valuation, RCF has a fair valuation with a 1.8 enterprise value to capital employed and a ROCE of 6.5. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, while the stock has generated a return of 30.15%, its profits have fallen by -57.1%.

In the latest quarter, RCF reported flat results in September 2024. Its interest has grown by 45.90%, while non-operating income is 40.05% of its profit before tax.

Despite being a midcap company, domestic mutual funds hold only 0.33% of RCF. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth on-the-ground research on companies.

Overall, RCF is a company with potential for long-term growth, but investors should carefully consider the current valuation and performance before making any investment decisions.