Rashtriya Chemicals and Fertilizers Limited Valuation
RCF · Chemicals · Current price ₹104.99
Is Rashtriya Chemicals and Fertilizers Limited undervalued?
We estimate the fair value of Rashtriya Chemicals and Fertilizers Limited at ₹121 per share, against a market price of ₹111. That puts the share price about +8.6% below our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Normalized earnings (mid-cycle EV/EBITDA) (₹121). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Rashtriya Chemicals and Fertilizers Limited spans ₹109 to ₹133. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
Rashtriya Chemicals and Fertilizers Limited trades at a P/E of 36.8x and a P/B of 1.2x, with a dividend yield of 2.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for Rashtriya Chemicals and Fertilizers Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹109 – ₹133
Why this method for this business
Normalized earnings and EV/EBITDA are the most appropriate models for a cyclical business like RCF, which operates in the fertilizers sector. These models align with the company's mid-cycle earnings and through-cycle valuation multiples.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Cyclical valued off mid-cycle earnings and a through-cycle EV/EBITDA (§6.6)
required inputs missing
- relative_pe: Not used due to insufficient data quality and lack of a clear sector benchmark
- discounted_cash_flow: Not used as the company's earnings are highly cyclical and cash flows are volatile
What was missing
- Forward estimates are not available
- Detailed information on the company's capital allocation and debt structure
What drives it
8 inputs, grouped by how strong each claim is
- Revenue (TTM)
- 18,480 ₹ cr
- Net debt
- 4,128 ₹ cr
- Shares outstanding
- 55,19,89,730
computed
computed
computed
- EBITDA margin (cycle median)
- 5%
- Through-cycle EV/EBITDA
- 11.71×
computed (≤5y median)
own-history (median of 5y)
- Mid-cycle EBITDA
- 924 ₹ cr
- Enterprise value
- 10,824 ₹ cr
- Net debt basis
- gross (cash unavailable)
computed
computed
note: net debt approximated by gross debt (cash unavailable)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Rashtriya Chemicals and Fertilizers Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyUnderstand the ratios
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DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.