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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rain Industries Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:27 pm

Market Cap 5,691 Cr.
Current Price 169
High / Low220/130
Stock P/E
Book Value 218
Dividend Yield0.59 %
ROCE1.90 %
ROE10.2 %
Face Value 2.00
PEG Ratio0.00

Competitors of Rain Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Sidhee Cement Ltd 296 Cr. 33.1/ 52.20.00 %6.94 %4.33 % 10.0
Bheema Cements Ltd 75.2 Cr. 23.144.0/21.0 13.20.00 %%56.4 % 10.0
The India Cements Ltd 6,805 Cr. 220277/173 1800.00 %0.73 %4.72 % 10.0
The Ramco Cements Ltd 19,979 Cr. 8461,058/70050.6 3020.24 %8.20 %5.67 % 1.00
Star Cement Ltd 8,721 Cr. 216256/14029.6 67.00.00 %16.4 %11.5 % 1.00
Industry Average27,995.21 Cr1,960.1917.48486.520.48%12.80%15.95%7.70

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales3,0083,6433,8494,0264,4375,5415,5775,4575,2534,6274,1604,1013,670
Expenses2,4192,9933,2163,5383,6454,3384,6624,8304,7203,9823,7944,7123,328
Operating Profit5896506334887921,202915627534645366-612342
OPM %20%18%16%12%18%22%16%11%10%14%9%-15%9%
Other Income43375955172319472533497354
Interest120122118119120122131150163169242245235
Depreciation198201199200198201203188193196193195195
Profit before tax314364375223490902600335203313-20-979-34
Tax %26%27%28%132%36%22%28%62%30%34%-237%-10%-244%
Net Profit231266269-72314708429126142207-66-1,079-116
EPS in Rs6.137.007.00-2.888.2519.8711.992.663.134.92-2.68-33.26-4.34

Last Updated: June 10, 2024, 5:34 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:59 am

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales5,35211,72811,92110,2059,25811,30314,04912,36110,46514,52721,01118,14116,558
Expenses4,24210,41110,7168,8547,7279,03012,08310,8808,78712,16617,47417,20815,816
Operating Profit1,1101,3171,2051,3511,5312,2731,9661,4811,6772,3603,537933742
OPM %21%11%10%13%17%20%14%12%16%16%17%5%4%
Other Income6657-1807299-6842156456193105180209
Interest373593620596631595457452491479524819891
Depreciation120357347328519526555594792798790776778
Profit before tax683423584984801,0849965918511,2762,327-482-719
Tax %32%9%-21%39%37%27%37%22%31%46%32%-65%
Net Profit465386703023017926314625886941,577-796-1,055
EPS in Rs13.3911.432.639.618.6522.7017.2911.6416.6017.2542.77-27.89-35.36
Dividend Payout %8%9%38%10%12%9%6%9%6%6%2%-4%

Profit & Loss Yearly Chart

Unable to calculate Year-wise YoY Net Profit Growth.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:5%
3 Years:20%
TTM:-24%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-186%
Stock Price CAGR
10 Years:14%
5 Years:11%
3 Years:-5%
1 Year:-5%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:6%
Last Year:-10%

Last Updated: June 16, 2024, 4:57 pm

Balance Sheet

Last Updated: June 1, 2024, 9:42 am

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Equity Capital686767676767676767676767
Reserves2,4833,1562,8792,8703,0983,8774,5554,8935,4666,0428,3607,275
Borrowings6,9278,2917,6737,5967,3267,3327,7797,8458,8598,4899,7318,690
Other Liabilities1,2772,9472,7342,5112,3543,1003,2973,1933,4713,8643,7873,954
Total Liabilities10,75514,46013,35213,04412,84514,37615,69915,99817,86318,46321,94519,987
Fixed Assets3,7199,2628,7128,5408,9238,6909,2619,49211,12410,93911,97711,357
CWIP5872722694112264417951,362931791467432
Investments21426193235133915131417
Other Assets6,4484,9124,3454,0743,6645,2115,6315,1055,7936,7199,4878,181
Total Assets10,75514,46013,35213,04412,84514,37615,69915,99817,86318,46321,94519,987

Reserves and Borrowings Chart

Rain Industries Ltd Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Cash from Operating Activity 8441,4026091,2911,2381,5678681,7062,2401,8238341,036
Cash from Investing Activity -128-4,153-95-382-531-504-539-1,038-1,265-798-510-576
Cash from Financing Activity -2502,780-507-883-795-887-520-619-653-600-740-396
Net Cash Flow46629726-88176-19249322425-41765

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow-5.00-7.00-6.00-6.00-6.00-5.00-6.00-6.00-7.00-6.00-6.00925.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days394842434154423338434344
Inventory Days1271098111210513411295118124146104
Days Payable786853716377634362695044
Cash Conversion Cycle888870848311190849598139104
Working Capital Days6067424536-38594139719073
ROCE %14%10%8%10%11%17%12%8%10%12%17%2%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters41.14%41.14%41.14%41.14%41.14%41.14%41.14%41.14%41.14%41.14%41.14%41.14%
FIIs13.90%10.61%12.26%14.08%14.36%15.70%17.19%17.74%17.82%17.08%16.32%12.09%
DIIs0.91%0.09%0.28%0.30%1.35%1.64%2.27%1.76%2.30%0.23%0.26%0.34%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.34%0.34%0.34%0.34%0.34%
Public44.05%48.16%46.32%44.48%43.15%41.52%39.39%39.01%38.40%41.20%41.96%46.08%
No. of Shareholders1,47,7541,82,2661,87,3221,87,0581,94,2552,04,1802,03,7571,95,0401,92,3372,07,7952,14,3112,30,604

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Nifty Smallcap 250 Index Fund123,9940.221.859,1962024-06-19109.46%
Motilal Oswal Nifty Smallcap 250 Index Fund75,7650.211.159,1962024-06-1927.99%
SBI Nifty Smallcap 250 Index Fund59,1960.210.8659,1962024-06-190%
ICICI Prudential Nifty Smallcap 250 Index Fund31,2410.210.4559,1962024-06-19-47.22%
UTI Nifty 500 Value 50 Index Fund27,6510.470.459,1962024-06-19-53.29%
HDFC NIFTY Smallcap 250 ETF15,9490.210.2359,1962024-06-19-73.06%
HDFC Nifty Smallcap 250 Index Fund13,0950.220.1959,1962024-06-19-77.88%
Motilal Oswal Nifty 500 Index Fund8,2670.020.1259,1962024-06-19-86.03%
Edelweiss Nifty Smallcap 250 Index Fund3,1080.210.0559,1962024-06-19-94.75%
ICICI Prudential S&P BSE 500 ETF1,9170.020.0359,1962024-06-19-96.76%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-27.8942.7717.2516.6016.60
Diluted EPS (Rs.)-27.8942.7717.2516.6016.60
Cash EPS (Rs.)-0.6270.3744.3741.0141.03
Book Value[Excl.RevalReserv]/Share (Rs.)230.88261.13189.25169.62169.62
Book Value[Incl.RevalReserv]/Share (Rs.)230.88261.13189.25169.62169.62
Revenue From Operations / Share (Rs.)539.37624.69431.90311.13311.13
PBDIT / Share (Rs.)33.06108.2575.9363.3963.39
PBIT / Share (Rs.)9.9884.7652.2039.8639.86
PBT / Share (Rs.)-14.3869.1837.9725.2825.28
Net Profit / Share (Rs.)-23.7146.8720.6417.4717.49
NP After MI And SOA / Share (Rs.)-27.8942.7717.2516.5919.67
PBDIT Margin (%)6.1217.3217.5820.3720.37
PBIT Margin (%)1.8413.5612.0812.8012.80
PBT Margin (%)-2.6611.078.798.128.12
Net Profit Margin (%)-4.397.504.775.615.62
NP After MI And SOA Margin (%)-5.166.843.995.336.32
Return on Networth / Equity (%)-12.7717.079.4910.0811.95
Return on Capital Employeed (%)2.0015.6111.188.538.53
Return On Assets (%)-4.686.483.113.053.61
Long Term Debt / Equity (X)0.990.921.281.451.45
Total Debt / Equity (X)1.111.091.361.541.54
Asset Turnover Ratio (%)0.860.010.010.0157.24
Current Ratio (X)2.442.362.191.941.94
Quick Ratio (X)1.461.211.341.321.32
Inventory Turnover Ratio (X)1.890.000.000.006.60
Dividend Payout Ratio (NP) (%)-3.582.335.796.020.00
Dividend Payout Ratio (CP) (%)-20.801.502.442.490.00
Earning Retention Ratio (%)103.5897.6794.2193.980.00
Cash Earning Retention Ratio (%)120.8098.5097.5697.510.00
Interest Coverage Ratio (X)1.366.955.334.352.74
Interest Coverage Ratio (Post Tax) (X)0.024.012.452.202.20
Enterprise Value (Cr.)11775.5313655.3715266.2211143.868769.26
EV / Net Operating Revenue (X)0.640.641.051.060.83
EV / EBITDA (X)10.593.755.985.234.11
MarketCap / Net Operating Revenue (X)0.280.270.550.400.17
Retention Ratios (%)103.5897.6694.2093.970.00
Price / BV (X)0.700.681.320.760.33
Price / Net Operating Revenue (X)0.280.270.550.400.17
EarningsYield-0.180.250.070.130.35

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 335.51

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 98.53% compared to the current price 169

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 151.67

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 10.25% compared to the current price ₹169

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -54.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (12.46 cr) and profit (260.23 cr) over the years.
  1. The stock has a low average ROCE of 10.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 48.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 94.50, which may not be favorable.
  4. The company has higher borrowings (8,044.83) compared to reserves (4,579.50), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Rain Industries Ltd:
    1. Net Profit Margin: -4.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 2.00% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -12.77% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0.02
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.46
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: 1.11
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Rain Industries Ltd. is a Public Limited Listed company incorporated on 15/03/1974 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L26942TG1974PLC001693 and registration number is 001693. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 53.55 Cr. and Equity Capital is Rs. 67.27 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Petrochemicals - PolymersRain Center, Hyderabad Telangana 500073secretarial@rain-industries.com
http://www.rain-industries.com
Management
NamePosition Held
Mr. Brian Jude McNamaraChairman & Ind.Director
Mr. Jagan Mohan Reddy NelloreVice Chairman & Non Exe.Dire
Mr. N Radhakrishna ReddyManaging Director
Mr. N Sujith Kumar ReddyNon Executive Director
Mr. Robert Thomas TontiIndependent Director
Mr. Varun BatraIndependent Director
Ms. B Shanti SreeIndependent Director

FAQ

What is the latest fair value of Rain Industries Ltd?

The latest fair value of Rain Industries Ltd is ₹335.51.

What is the Market Cap of Rain Industries Ltd?

The Market Cap of Rain Industries Ltd is 5,691 Cr..

What is the current Stock Price of Rain Industries Ltd as on 23 June 2024?

The current stock price of Rain Industries Ltd as on 23 June 2024 is ₹169.

What is the High / Low of Rain Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rain Industries Ltd stocks is 220/130.

What is the Stock P/E of Rain Industries Ltd?

The Stock P/E of Rain Industries Ltd is .

What is the Book Value of Rain Industries Ltd?

The Book Value of Rain Industries Ltd is 218.

What is the Dividend Yield of Rain Industries Ltd?

The Dividend Yield of Rain Industries Ltd is 0.59 %.

What is the ROCE of Rain Industries Ltd?

The ROCE of Rain Industries Ltd is 1.90 %.

What is the ROE of Rain Industries Ltd?

The ROE of Rain Industries Ltd is 10.2 %.

What is the Face Value of Rain Industries Ltd?

The Face Value of Rain Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Rain Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE