Rashtriya Chemicals & Fertilizers Ltd: Is It a Deep Value Opportunity?

Rashtriya Chemicals & Fertilizers Ltd has a deep value score of 47/100 (rated Average). This score is calculated from three components

• Earnings Score: 30/40 — measures PAT growth momentum across quarters
• Underperformance Score: 11/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 6/25 — operational quality (margins, revenue growth, valuation)

Rashtriya Chemicals & Fertilizers Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +131%
• Previous Quarter PAT Growth (QoQ): -23%
• 2 Quarters Ago PAT Growth (QoQ): +94%
• PAT Acceleration: +18.6pp (profits are accelerating)
• 1 consecutive quarters of positive PAT growth

Rashtriya Chemicals & Fertilizers Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -20%
• 6-Month Return vs Nifty 500: -5%
• 3-Month Return vs Nifty 500: +12%
• Yet average quarterly PAT growth is +67% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Rashtriya Chemicals & Fertilizers Ltd's earnings momentum is Accelerating — profit growth is speeding up.

• PAT QoQ progression: +94% → -23% → +131% (2Q ago → 1Q ago → latest)
• Acceleration: +18.6pp
• PAT YoY Growth: +160%

Rashtriya Chemicals & Fertilizers Ltd's valuation metrics

• Price-to-Earnings (PE): 16.3x
• Price-to-Book (PB): 1.4x
• PEG Ratio: 7.5x
• Margin of Safety: -44% (appears overvalued)

Rashtriya Chemicals & Fertilizers Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +32%
• Average Quarterly Revenue Growth: +23%
• Revenue Acceleration: -12.6pp
• Latest OPM Change: +0.0pp (margins expanding)
• Average OPM Change: +0.4pp
• Revenue YoY: +50%

Rashtriya Chemicals & Fertilizers Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹427 Cr
• TTM PAT Growth: +76.5% YoY
• TTM Revenue: ₹18,000 Cr
• TTM Revenue Growth: +9.1% YoY
• TTM Operating Margin: 5.2%

Rashtriya Chemicals & Fertilizers Ltd key facts

• Sector: Fertilisers
• Market Cap: ₹7.0K Cr
• Rank in Fertilisers: #1 by value score
• Overall rank among all deep value stocks: #76

Rashtriya Chemicals & Fertilizers Ltd shows limited deep value signals currently — score is 47/100 (Average). Monitor for improvement.

• Value Score: 47/100 (Average)
• Earnings: Accelerating
• 1Y Underperformance: -20% vs Nifty 500

Fertilisers deep value sector overview

• 1 deep value stocks in this sector
• Average value score: 47/100
• Avg PAT acceleration: +18.6pp
• Top pick: Rashtriya Chemicals & Fertilizers Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.