RCF (Rashtriya Chemicals and Fertilizers) shares gained further ground on Wednesday despite selling pressure in the markets. The PSU fertilizer major witnessed sustained buying and witnessed surge during the last hour of trade. RCF stock touched intraday high of Rs 187.90 in today's session. The stock has made a strong support at Rs 175 on technical charts.

Financial Highlights of Rashtriya Chemicals and Fertilizers

Stock Details and Market Metrics

Open: Rs 185.00
High: Rs 187.90
Low: Rs 182.00
Market Capitalization: Rs 103.16B
P/E Ratio: 52.49
Dividend Yield: 0.67%
52-Week High: Rs 245.00
52-Week Low: Rs 118.40
RCF's current price reflects a healthy recovery from its 52-week low of Rs 118.40, although it is trading below its 52-week high of Rs 245.00. Its relatively high P/E ratio of 52.49 indicates that the stock may be priced for growth expectations.

Performance Analysis
Revenue Growth and Profitability Rashtriya Chemicals and Fertilizers has consistently delivered strong revenue growth backed by increased demand for fertilizers in India. Its operational focus on fertilizers like urea and complex nutrients makes it a critical component of India’s agricultural framework.

Dividend Policies RCF offers a modest dividend yield of 0.67%, which could appeal to investors seeking regular income. However, the dividend yield lags behind its peers in the sector, suggesting a reinvestment-heavy strategy to fuel growth.

Analyst Recommendations
Recent analyst reports suggest a cautious optimism for RCF.

JM Financial has placed a target price of Rs 210, citing improved operational efficiencies and robust demand forecasts.
ICICI Securities recommends a "Hold" rating, projecting long-term growth prospects but advising caution due to the relatively high valuation.
Technical Analysis of Rashtriya Chemicals and Fertilizers
Candlestick Patterns and Daily Chart Insights RCF has been consolidating within a narrow price range, reflecting a battle between buyers and sellers. The daily chart indicates the formation of a bullish engulfing pattern, suggesting potential upward momentum if the stock breaks its immediate resistance level.

Fibonacci Levels Using the 52-week high of Rs 245.00 and 52-week low of Rs 118.40, key Fibonacci retracement levels are:

23.6%: Rs 190.38
38.2%: Rs 175.44
50%: Rs 181.70
61.8%: Rs 196.96
The stock is currently trading near the 23.6% retracement level, which could act as a support zone. A breakout above Rs 190.38 may indicate further bullish momentum.

Support and Resistance Levels

Support: Rs 182.00, Rs 175.00
Resistance: Rs 190.00, Rs 198.00
A breach of Rs 190.00 could lead to a retest of Rs 198.00, while a drop below Rs 182.00 might trigger a pullback toward Rs 175.00.