Why Rashtriya Chemicals and Fertilizers Limited (NSE:RCF) Could Be Worth Watching

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Rashtriya Chemicals and Fertilizers Limited (NSE:RCF), which is in the chemicals business, and is based in India, saw a decent share price growth in the teens level on the NSEI over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Rashtriya Chemicals and Fertilizers’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Rashtriya Chemicals and Fertilizers

Is Rashtriya Chemicals and Fertilizers still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 16.8% above my intrinsic value, which means if you buy Rashtriya Chemicals and Fertilizers today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is ₹48.63, there’s only an insignificant downside when the price falls to its real value. In addition to this, Rashtriya Chemicals and Fertilizers has a low beta, which suggests its share price is less volatile than the wider market.

What this means for you:

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Rashtriya Chemicals and Fertilizers. You can find everything you need to know about Rashtriya Chemicals and Fertilizers in the latest infographic research report. If you are no longer interested in Rashtriya Chemicals and Fertilizers, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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