Shares of Rashtriya Chemicals and Fertilizers Ltd (RCFL) surged around 10 percent on July 12 to hit a fresh record high of Rs 244.9 on the National Stock Exchange (NSE) after the company announced a significant development.
The Board of Directors of the company approved a purchase order worth Rs 515 crore for Topsoe A/s to procure a Basic Engineering Design Package (BEDP) and supply proprietary equipment and catalyst.
This move aims to revamp the Ammonia Plant at RCF Thai, focusing on reducing specific energy consumption. The announcement, made in accordance with SEBI regulations, has generated positive investor sentiment, driving up the stock price.
The order needs to be executed within 36 months or 3 years, the company said in its regulatory filing.
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RCF is a public sector fertiliser and chemical manufacturer. Established in 1978 following the reorganisation of the former Fertiliser Corporation of India Ltd. into five separate entities, it operates two main units including one in Trombay, Mumbai, and another in Thal, Raigad district, located approximately 100 km from Mumbai.
RCF's product portfolio includes Neem Urea, Complex Fertilisers, Bio-Fertilizers, Micro Nutrients, and 100 percent Water-soluble fertilisers. Additionally, it is known for manufacturing essential chemicals such as Ammonia, Methanol, Methylamine, Ammonium Nitrate, and others like Nitric Acid, Sulphuric Acid, and Sodium Nitrate.
At 11:39 am, RCF shares were trading around 6 percent higher at Rs 233.38 on NSE. So far this year, the stock has surged around 40 percent, beating benchmark Nifty's returns of 12 percent during this period.
In the last one year, the multibagger PSU stock has has zoomed over 102 percent, doubling investors' money. In comparison, benchmark Nifty rose around 26 percent during this period.
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