Buy Rashtriya Chemicals & Fertilizers, target price Rs 127: HDFC Securities

HDFC Securities has buy call on Rashtriya Chemicals & Fertilizers with a target price of Rs 127. The current market price of Rashtriya Chemicals & Fertilizers is Rs 115.65. HDFC Securities recommended to keep stoploss at Rs 110.

Rashtriya Chemicals & Fertilizers, incorporated in the year 1978, is a Mid Cap company (having a market cap of Rs 6410.62 Crore) operating in Fertilisers sector.

Rashtriya Chemicals & Fertilizers key Products/Revenue Segments include Other Operating Revenue, Urea, Suphala 15:15:15, Ammonium Nitrate Melt, Ammonia, Di Ammonium Phosphate (DAP), NPK 20-20-0, Other Industrial Products, Methylamines, Nitric Acid (Diluted), Muriate Of Potash (Trading), NPK ( Sikka ), Others, By Products, Scrap for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 5597.52 Crore, up 11.56 % from last quarter Total Income of Rs 5017.41 Crore and up 111.38 % from last year same quarter Total Income of Rs 2648.10 Crore. Company has reported net profit after tax of Rs 257.46 Crore in latest quarter.

The company’s top management includes Mr.S C Mudgerikar, Mr.Umesh Dongre, Mr.Sudhir D Panadare, Mrs.Shashi Bala Bharti, Dr.Shambhu Kumar, Prof.Anil Kumar Singh, Ms.Alka Tiwari, Ms.Aparna S Sharma. Company has Gokhale & Sathe as its auditors. As on 30-09-2022, the company has a total of 55 Crore shares outstanding.

Investment Rationale
Stock reached a crucial support of the inverted head and shoulder neckline and turned the trend north.

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 30-Sep-2022, while FIIs owned 2.95 per cent, DIIs 0.66 per cent.