AI Summary
✦ ClarthaRashtriya Chemicals and Fertilizers Limited is an Indian manufacturer and marketer of fertilizers and industrial chemicals. Fertilizers drive its core business through Urea, Suphala, Sujala, Microla, and biofertilizer products, while Industrial Chemicals and Trading provide additional revenue. Its MoU with GAIL for a 1.27 MTPA urea plant in Maharashtra could expand future volumes, though capital intensity may pressure returns. Profit growth rose 76.3% year-on-year against 9.1% revenue growth, but declining margins question earnings quality. ROE is modest at 8.7%, while debt-to-equity of 80.61 indicates extreme leverage that materially amplifies financial risk and affects returns. At 16.4 times earnings, the stock appears fairly valued relative to the sector, rather than discounted despite profit growth. Investors must assess whether the proposed urea expansion can improve margins and offset balance-sheet pressure.
Valuation Metrics
Trading 12.9% below historical median. Valuation is stable — currently in the strongly undervalued zone (z-score: -0.87). Confidence: 84%.
Live forward EPS implies next-12-month EPS of ₹7.40. Applying the stock's normalized valuation corridor produces a fair range of ₹121.80 to ₹148.67, with base value near ₹137.57 (+9.6% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹7.40
Forward P/E
17.0x
Base Fair Value
₹137.57
Fair Range
₹121.80 - ₹148.67
Upside To Base
+9.6%
Estimate Source
Live forward EPS
Growth Estimate
+158.9%
5Y Average
16.01
Current
16.20
Overvalued
20.09
Undervalued
16.46
5Y Average
11.56
Current
11.69
Overvalued
13.70
Undervalued
8.75
5Y Average
1.54
Current
1.35
Overvalued
1.77
Undervalued
1.31
Peers & Comparison
Sector: Materials · Theme: Fertilizers & Agro Chemicals
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
CHAMBAL FERTILIZERS LTD CHAMBLFERTFertilizers & Agro Chemicals | -11.8% | 9.6% | 9.3x Undervalued | -55% vs avg | -15.9% |
SHARDA CROPCHEM LTD. SHARDACROPFertilizers & Agro Chemicals | +4.9% | 11.9% | 11.7x Undervalued | -43% vs avg | -16.9% |
PARADEEP PHOSPHATES LTD PARADEEPFertilizers & Agro Chemicals | +63.1% | 4.6% | 14.7x Undervalued | -29% vs avg | -28.9% |
BALAJI AMINES LIMITED BALAMINESFertilizers & Agro Chemicals | +27.2% | 13.4% | 33.9x Premium | +64% vs avg | +31.7% |
GUJ STATE FERT & CHEM LTD GSFCFertilizers & Agro Chemicals | +37.0% | 6.1% | 9.5x Undervalued | -54% vs avg | -21.0% |
KRISHANA PHOSCHEM LIMITED KRISHANAFertilizers & Agro Chemicals | +34.6% | 7.7% | 31.5x Premium | +52% vs avg | +68.7% |
GUJ NAR VAL FER & CHEM L GNFCFertilizers & Agro Chemicals | +39.8% | 12.3% | 7.6x Undervalued | -63% vs avg | +9.1% |
MADHYA BHARAT AGRO P. LTD MBAPLFertilizers & Agro Chemicals | +1.6% | 8.2% | 47.1x Premium | +128% vs avg | +87.4% |
RASHTRIYA CHEMICALS & FER trades at a discount (16.2x vs peer avg 20.7x), suggesting potential undervaluation relative to the Fertilizers & Agro Chemicals cohort. Peers include CHAMBAL FERTILIZERS LTD, SHARDA CROPCHEM LTD., PARADEEP PHOSPHATES LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹5.58K CrMar 2026Latest net profit
₹189 CrMar 2026Latest EPS
₹3.42Mar 2026Net margin
6.0%Mar 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Mar 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 4,684 | 4,043 | 4,155 | 4,904 | 3,880 | 4,396 | 4,290 | 4,518 | 3,730 | 3,371 | 5,293 | 4,236 | 5,581 |
| Expenses + | 4,487 | 3,914 | 4,049 | 4,819 | 3,684 | 4,280 | 4,088 | 4,339 | 3,551 | 3,213 | 5,078 | 3,992 | 5,256 |
| Operating Profit | 197 | 129 | 106 | 84 | 195 | 116 | 202 | 179 | 178 | 158 | 214 | 245 | 324 |
| OPM % | 4.2% | 3.2% | 2.5% | 1.7% | 5% | 2.6% | 4.7% | 4.0% | 4.8% | 4.7% | 4.0% | 6% | 6% |
| Other Income + | 116 | 58 | 67 | 37 | 44 | 30 | 43 | 42 | 54 | 39 | 51 | 52 | 113 |
| Interest | 44 | 39 | 44 | 48 | 52 | 70 | 76 | 53 | 54 | 56 | 55 | 103 | 79 |
| Depreciation | 59 | 56 | 56 | 56 | 64 | 60 | 62 | 63 | 78 | 66 | 70 | 75 | 80 |
| Profit before tax | 209 | 92 | 73 | 17 | 122 | 16 | 106 | 105 | 101 | 75 | 141 | 118 | 278 |
| Tax % | 18% | 26% | 29% | 36% | 20% | 34% | 26% | 24% | 28% | 28% | 25% | 31% | 32% |
| Net Profit + | 171 | 68 | 52 | 10 | 98 | 11 | 79 | 80 | 73 | 54 | 106 | 81 | 189 |
| EPS in Rs | 3.11 | 1.23 | 0.94 | 0.19 | 1.77 | 0.19 | 1.42 | 1.44 | 1.32 | 0.98 | 1.92 | 1.47 | 3.42 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Compliances-Reg. 57 (1) - Certificate of interest payment/Principal in case of NCD
Board Meeting Intimation for Intimation Of Board Meeting Of Rashtriya Chemicals And Fertilizers Limited
The Department Of Fertilizers (Dof), Ministry Of Chemicals & Fertilizers, Government Of India, Has Issued Notification No. 12012/3/2023-UPP (E.34185) Dated 30Th July, 2026 Regarding The Fixation Of Revised Energy Norms Applicable Under The Urea Pricing Policy. As Per The Aforesaid Notification, The Revised Energy Norm For The Company''s Thal Unit Has Been Fixed At 5.984 Gcal Per Metric Tonne (PMT) With Effect From April 1, 2025, As Against The Existing Norm Of 6.200 Gcal PMT. The Revised Energy Norm Shall Remain Applicable Up To March 31,2028
Rashtriya Chemicals And Fertilizers Limited (RCF) And GAIL (India) Limited (GAIL) Have Entered Into A Memorandum Of Understanding (Mou) On July 29 ,2026 For Establishing A Gas-Based Fertilizer Project In The State Of Maharashtra Jointly Through A Special Purpose Vehicle (SPV)