This Multibagger Stock Makes A New Lifetime High After Winning a Rs 515 Crore Order
RCF shares hit a new lifetime high following a Rs 515 crore order. Explore the details of this substantial order and its impact on RCF's future growth.
RCF Stock Price: Shares of Rashtriya Chemicals and Fertilizers Ltd (RCF) soared by approximately 10% on July 12, reaching a new record high of Rs 244.9 on the National Stock Exchange (NSE). This surge followed the company's announcement of securing a significant order worth Rs 515 crore.
Details of the Major Order Win
The company's Board of Directors has approved a substantial purchase order to Topsoe A/s. This agreement includes the procurement of a Basic Engineering Design Package (BEDP) and the supply of proprietary equipment and catalyst. Specifically, this order will support the revamp of an Ammonia plant to achieve a reduction in specific energy consumption. This project is slated for completion within a 36-month timeframe.
Business Overview and Financial Results
Founded in 1978, RCF is a key player in the public sector, specializing in fertilizer and chemical production. Its diverse product portfolio includes Neem Urea, Complex Fertilizers, Bio-fertilizers, Micro Nutrients, and fully Water-Soluble fertilizers. It is also recognized for producing vital chemicals such as Ammonia, Methanol, Methylamine, Ammonium Nitrate, Nitric Acid, Sulphuric Acid, and Sodium Nitrate.
For the fourth quarter of FY24, RCF reported net sales of Rs 3,879.65 crore, down 17% year-on-year, while its net profit dropped by 43% to Rs 97.65 crore. However, recent modernisation at the company’s Trombay facility, including improvements to the Ammonia-I, Nitric Acid, and Methanol plants, should bolster its operational sustainability and efficiency going forward.
Should you buy RCF now or is it overvalued?
Over the past year, this PSU stock has zoomed over 100%, significantly outperforming the benchmark Nifty's 25% rise. With India's agriculture sector poised for significant growth, should you consider investing in RCF at this time?
Consult LiMo, world’s first-ever AI copilot for stock investing that provides both a judgement and the reasoning behind it. LiMo will advise you on the optimal entry points based on technical indicators and propose possible target levels accordingly.
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