Rashtriya Chemical Fertiliser - RCF

India's third-largest fertiliser producer is set to benefit from the higher supply of natural gas and all its plants achieving higher capacity utilisation. RCF is also investing in its existing plants to increase capacities of methanol, ammonium nitro phosphate, while debottlenecking its urea plant in Thal. Additionally, it has plans to set up another urea plant at Thal with over Rs 4250 crore of investments. It is also working on several projects to add new products, augment production capacities, increase efficiencies, reduce emissions and reduce costs. Although its dependency on government's fertiliser subsidy policy will continue in the near future, its profitability is expected to move on a steady growth path. Long-term investors can accumulate this PSU in their portfolio.