Rashtriya Chemicals & Fertilizers (RCF) Share Price Target 2026 to 2030

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Rashtriya Chemicals & Fertilizers Limited (RCF) is a leading public sector undertaking under the administrative control of the Ministry of Chemicals & Fertilizers, Government of India. Incorporated in 1978, RCF is engaged in the manufacturing and marketing of fertilizers (urea, complex fertilizers) and industrial chemicals (ammonia, nitric acid, ammonium nitrate). With a dominant presence in western and central India, RCF operates major plants in Trombay (Maharashtra) and Talcher (Odisha). As of January 2026, RCF is delivering modest profit growth (6.10%) but faces stagnant sales (-0.28%) and low returns on equity (5.16%). Despite its strategic importance in India’s food security ecosystem, the company trades at a modest valuation with limited near-term catalysts. This article provides a realistic outlook on the RCF share price target 2026–2030.

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Rashtriya Chemicals & Fertilizers: Company Overview

  • Founded: 1978
  • Managing Director: Shri S. C. Mudgerikar
  • NSE Symbol: RCF
  • Core Segments:
  • Fertilizers (75%) – Urea, NPK, DAP
  • Industrial Chemicals (25%) – Ammonia, Nitric Acid, Ammonium Nitrate
  • Market Position: Among India’s top 5 urea producers; key supplier to government-subsidized fertilizer schemes

RCF benefits from sovereign backing and long-term gas supply agreements but faces margin pressure due to regulated pricing and input cost volatility.

RCF: Key Financial Snapshot

MetricValue
Current Share Price₹128.50
Market Capitalization₹7,080.92 Cr
No. of Shares Outstanding55.17 Cr
P/E Ratio (TTM)22.69
P/B Ratio1.44
EPS (TTM)₹5.66
Book Value (TTM)₹89.32
ROE5.16%
ROCE7.62%
Dividend Yield1.03%
Face Value₹10
Cash₹1,035.74 Cr
Debt₹2,751.92 Cr
Promoter Holding75.00%
Sales Growth (YoY)–0.28%
Profit Growth (YoY)6.10%

Note on Performance: Despite 6.1% YoY profit growth, RCF’s sales are flat, reflecting weak pricing power and subsidy-driven business model. ROE remains below 6%, indicating poor capital efficiency.

RCF Share Price Target Forecast (2026–2030)

YearTarget Price Range (₹)
2026₹138 – ₹152
2027₹148 – ₹166
2028₹158 – ₹182
2029₹168 – ₹200
2030₹178 – ₹220

Important: These targets assume stable gas supply, timely subsidy disbursements, and no major policy shifts in fertilizer pricing. Upside is limited by low ROE and structural inefficiencies.

RCF Share Price Target 2026

YearShare Price Target 1Share Price Target 2
2026₹138₹152

RCF reported 6.10% YoY profit growth but flat sales in FY2025, driven by cost rationalization rather than volume or pricing gains. Trading at a P/E of 22.7x and P/B of 1.44x, the stock is fairly valued for a PSU with low ROE. The 2026 target range assumes continued government support and stable input costs.

RCF Share Price Target 2027

YearShare Price Target 1Share Price Target 2
2027₹148₹166

If RCF sustains 5–7% earnings growth and benefits from new capacity at Talcher, EPS could reach ₹6.10–₹6.40 by FY27. Assuming a P/E of 23–24x, the 2027 target range is justified—but remains constrained by sectoral headwinds.

RCF Share Price Target 2028

YearShare Price Target 1Share Price Target 2
2028₹158₹182

By 2028, benefits from operational efficiency and potential deregulation in non-urea fertilizers may reflect in margins. A P/E of 24–25x on projected EPS of ₹6.40–₹6.80 supports the ₹158–₹182 band.

RCF Share Price Target 2029

YearShare Price Target 1Share Price Target 2
2029₹168₹200

Long-term tailwinds include India’s push for self-reliance in fertilizer production and green ammonia initiatives. If competition doesn’t erode pricing, EPS could reach ₹7.00–₹7.50 by FY29. At a P/E of 24–26x, the 2029 target is ₹168–₹200.

RCF Share Price Target 2030

YearShare Price Target 1Share Price Target 2
2030₹178₹220

Over a five-year horizon, RCF remains a low-growth, policy-dependent PSU. A terminal P/E of 25–27x on FY30 EPS (~₹7.20–₹8.10) justifies the ₹178–₹220 range.

RCF: Shareholding Pattern

Only suitable for long-term, conservative portfolios. It may not appeal to investors seeking high growth, strong ROE, or significant capital appreciation.
For FY2025, RCF declared a final dividend of ₹1.32 per share, resulting in a dividend yield of approximately 1.03%.
The stock has been underperforming due to:
  • Flat revenue growth (around –0.28%)
  • Low return on equity of roughly 5.16%
  • Limited re-rating catalysts in a heavily regulated fertilizer sector
The outlook is stable but not exciting. RCF is best viewed as a policy-driven utility-style PSU, not a compounding growth stock. Meaningful upside would require subsidy reform or successful monetization of green ammonia initiatives.
Yes. Rashtriya Chemicals and Fertilizers (RCF) is a Central Public Sector Enterprise (CPSE) under the Ministry of Chemicals & Fertilizers, with about 75% promoter ownership by the Government of India.
The record date for the FY2025 final dividend was October 10, 2025.
CategoryHolding (%)
Promoters (Govt. of India)75.00%
Public & Retail22.09%
Foreign Institutional Investors (FII)2.50%
Domestic Institutional Investors (DII)0.41%

High government ownership ensures policy alignment but limits float liquidity and institutional interest.

RCF: Strengths vs Risks

Strengths:

  • Sovereign ownership with 75% GOI stake
  • Strategic role in national food security
  • Healthy cash balance (₹1,036 Cr)
  • Consistent dividend payer (1.03% yield)

Risks:

  • Low ROE (5.16%) limits capital efficiency
  • Flat sales growth due to regulated pricing
  • Debt/Equity of 0.31 adds financial risk
  • Vulnerable to gas price and subsidy delays

Investment Suitability

FactorAssessment
Risk ProfileModerate
Ideal Time Horizon5+ years
VolatilityLower than market average
Dividend/Income PotentialLow (1.03% yield)
Best ForConservative investors seeking PSU exposure with dividend safety
Only suitable for long-term, conservative portfolios. It may not appeal to investors seeking high growth, strong ROE, or significant capital appreciation.
For FY2025, RCF declared a final dividend of ₹1.32 per share, resulting in a dividend yield of approximately 1.03%.
The stock has been underperforming due to:
  • Flat revenue growth (around –0.28%)
  • Low return on equity of roughly 5.16%
  • Limited re-rating catalysts in a heavily regulated fertilizer sector
The outlook is stable but not exciting. RCF is best viewed as a policy-driven utility-style PSU, not a compounding growth stock. Meaningful upside would require subsidy reform or successful monetization of green ammonia initiatives.
Yes. Rashtriya Chemicals and Fertilizers (RCF) is a Central Public Sector Enterprise (CPSE) under the Ministry of Chemicals & Fertilizers, with about 75% promoter ownership by the Government of India.
The record date for the FY2025 final dividend was October 10, 2025.

Final Verdict

Rashtriya Chemicals & Fertilizers is a strategically important but financially mediocre PSU. While it offers dividend safety and sovereign backing, its low returns and flat growth limit upside.

Our RCF share price target 2026–2030 (₹138 to ₹220) reflects cautious optimism—rooted in policy support but tempered by structural inefficiencies. Upside is modest; downside is cushioned by book value and dividends.

Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.

Sources

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