Interesting case of RCF - Rashtriya Chemicals and Fertilizers limited

Let me put forth an interesting case of RCF.... it is up to you to judge

We know the current Union Government of India is cutting or rationalizing all the subsidies on almost all the commodities (LPG / CNG GAS, Diesel, Petrol, and so on ), as a means to achieve its Fiscal targets.

So this changes fundamental aspect for Fertilizer companies in India, and will improve the profitability in coming 1-3 years thereby significantly improving the EPS and PE multiples of the stocks.

Real interesting thing about RCF is, they hold approximately 800 acres of land in Sion-Chembur, Mumbai, a very prime location, and the cost of the LAND will be appro around 10000+ CR INR.

Today, the share is available at around 5000 CR market CAP and is trading around 80-90 INR range.

This means RCF is trading tremendously undervalued, and if the LAND cost is factored in the share price, its fare value comes around 200+... and this journey of RCF share to its fare value is just started....

Is it really happening? Will this become a wonderful tale after a year? Lets see, what the charts are indicating...