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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rain Industries Ltd

About the Company - Rain Industries Ltd

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
CementRain Center, 34, Srinagar Colony, 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
Ms. Radhika Vijay HaribhaktiIndependent Director
Ms. Nirmala ReddyIndependent Director
Mr. Varun BatraIndependent Director
Mr. Robert Thomas TontiIndependent Director

Rain Industries Ltd. Share Price Update

Share PriceValue
Today₹183.75
Previous Day₹187.95

Basic Stock Data of Rain Industries Ltd

Market Cap 6,895 Cr.
Current Price 205
High / Low220/140
Stock P/E23.4
Book Value 253
Dividend Yield0.47 %
ROCE17.1 %
ROE19.8 %
Face Value 2.00

Data Source: screener.in

Competitors of Rain Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shree Cement Ltd 95,636 Cr. 26,50630,738/22,60140.6 5,3130.38 %8.99 %7.45 % 10.0
Shree Digvijay Cement Co. Ltd 1,592 Cr. 108124/57.319.8 21.43.68 %22.7 %18.1 % 10.0
Star Cement Ltd 8,304 Cr. 205220/10327.4 63.10.00 %16.8 %10.8 % 1.00
Deccan Cements Ltd 896 Cr. 640668/38820.3 5000.58 %9.00 %7.42 % 5.00
NCL Industries Ltd 1,085 Cr. 240258/16713.4 1801.25 %11.1 %5.99 % 10.0
Industry Average200.2 Cr243.824.3153.91.18%13.72%9.95%7.2

Rain Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,5662,6403,0083,6433,8494,0264,4375,5415,5775,4575,2534,6274,160
Expenses2,0692,2592,4192,9933,2163,5383,6454,3384,6624,8304,7203,9823,794
Operating Profit4973815896506334887921,202915627534645366
OPM %19%14%20%18%16%12%18%22%16%11%10%14%9%
Other Income124054337595517231947253349
Interest123124120122118119120122131150163169242
Depreciation207217198201199200198201203188193196193
Profit before tax179445314364375223490902600335203313-20
Tax %34%28%26%27%28%132%36%22%28%62%30%34%-237%
Net Profit118322231266269-72314708429126142207-66
EPS in Rs3.519.136.137.007.00-2.888.2519.8711.992.663.134.92-2.68

Rain Industries Ltd Quarterly Chart

Rain Industries Ltd Profit & Loss

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022TTM
Sales5,6275,35211,72811,92110,2059,25811,30314,04912,36110,46514,52721,01119,498
Expenses4,2834,24210,41110,7168,8547,7279,03012,08310,8808,78712,16617,47417,326
Operating Profit1,3441,1101,3171,2051,3511,5312,2731,9661,4811,6772,3603,5372,171
OPM %24%21%11%10%13%17%20%14%12%16%16%17%11%
Other Income226657-1807299-6842156456193105154
Interest246373593620596631595457452491479524724
Depreciation113120357347328519526555594792798790769
Profit before tax1,007683423584984801,0849965918511,2762,327832
Tax %34%32%9%-21%39%37%27%37%22%31%46%32%
Net Profit665465386703023017926314625886941,577409
EPS in Rs18.9513.3911.432.639.618.6522.7017.2911.6416.6017.2542.778.03
Dividend Payout %6%8%9%38%10%12%9%6%9%6%6%2%

Rain Industries Ltd Profit & Loss Yearly Chart

Rain Industries Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:13%
3 Years:19%
TTM:0%
Compounded Profit Growth
10 Years:12%
5 Years:11%
3 Years:55%
TTM:-77%
Stock Price CAGR
10 Years:18%
5 Years:12%
3 Years:14%
1 Year:15%
Return on Equity
10 Years:13%
5 Years:13%
3 Years:14%
Last Year:20%

Rain Industries Ltd Balance Sheet

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Jun 2023
Equity Capital70686767676767676767676767
Reserves2,0512,4833,1562,8792,8703,0983,8774,5554,8935,4666,0428,3608,454
Borrowings3,7476,9278,2917,6737,5967,3267,3327,7797,8458,8598,4899,7319,372
Other Liabilities9481,2772,9472,7342,5112,3543,1003,2973,1933,4713,8643,7873,773
Total Liabilities6,81510,75514,46013,35213,04412,84514,37615,69915,99817,86318,46321,94521,667
Fixed Assets3,6943,7199,2628,7128,5408,9238,6909,2619,49211,12410,93911,97711,912
CWIP1245872722694112264417951,362931791467459
Investments221426193235133915131497
Other Assets2,9966,4484,9124,3454,0743,6645,2115,6315,1055,7936,7199,4879,200
Total Assets6,81510,75514,46013,35213,04412,84514,37615,69915,99817,86318,46321,94521,667

Rain Industries Ltd 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

Rain Industries Ltd Financial Efficiency Indicators

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Debtor Days453948424341544233384343
Inventory Days1321271098111210513411295118124146
Days Payable507868537163776343626950
Cash Conversion Cycle127888870848311190849598139
Working Capital Days966067424536-385941397190
ROCE %24%14%10%8%10%11%17%12%8%10%12%17%

Rain Industries Ltd Financial Efficiency Indicators Chart

Rain Industries Ltd 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

Rain Industries Ltd Shareholding Pattern Chart

No. of Rain Industries Ltd Shareholders

Rain Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Nifty Smallcap 250 Index Fund1239940.221.8
Motilal Oswal Nifty Smallcap 250 Index Fund757650.211.1
SBI Nifty Smallcap 250 Index Fund591960.210.86
ICICI Prudential Nifty Smallcap 250 Index Fund312410.210.45
UTI Nifty 500 Value 50 Index Fund276510.470.4
HDFC NIFTY Smallcap 250 ETF159490.210.23
HDFC Nifty Smallcap 250 Index Fund130950.220.19
Motilal Oswal Nifty 500 Index Fund82670.020.12
Edelweiss Nifty Smallcap 250 Index Fund31080.210.05
ICICI Prudential S&P BSE 500 ETF19170.020.03

Rain Industries Ltd ROCE Trend

Rain Industries Ltd EPS Trend

Rain Industries Ltd Key Financial Ratios

MonthDec 22Dec 21Dec 20Mar 20Dec 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)42.7717.2516.6016.6011.64
Diluted EPS (Rs.)42.7717.2516.6016.6011.64
Cash EPS (Rs.)70.3744.3741.0141.0331.41
Book Value[Excl.RevalReserv]/Share (Rs.)261.13189.25169.62169.62153.28
Book Value[Incl.RevalReserv]/Share (Rs.)261.13189.25169.62169.62153.28
Revenue From Operations / Share (Rs.)624.69431.90311.13311.13367.50
PBDIT / Share (Rs.)108.2575.9363.3963.3948.67
PBIT / Share (Rs.)84.7652.2039.8639.8631.01
PBT / Share (Rs.)69.1837.9725.2825.2817.56
Net Profit / Share (Rs.)46.8720.6417.4717.4913.75
NP After MI And SOA / Share (Rs.)42.7717.2516.5919.6711.64
PBDIT Margin (%)17.3217.5820.3720.3713.24
PBIT Margin (%)13.5612.0812.8012.808.43
PBT Margin (%)11.078.798.128.124.77
Net Profit Margin (%)7.504.775.615.623.74
NP After MI And SOA Margin (%)6.843.995.336.323.16
Return on Networth / Equity (%)17.079.4910.0811.957.89
Return on Capital Employeed (%)15.6111.188.538.537.43
Return On Assets (%)6.483.113.053.612.41
Long Term Debt / Equity (X)0.921.281.451.451.48
Total Debt / Equity (X)1.091.361.541.541.56
Asset Turnover Ratio (%)0.010.010.0157.240.01
Current Ratio (X)2.362.191.941.942.00
Quick Ratio (X)1.211.341.321.321.20
Inventory Turnover Ratio (X)0.000.000.006.600.00
Dividend Payout Ratio (NP) (%)2.335.796.020.009.76
Dividend Payout Ratio (CP) (%)1.502.442.490.003.87
Earning Retention Ratio (%)97.6794.2193.980.0090.24
Cash Earning Retention Ratio (%)98.5097.5697.510.0096.13
Interest Coverage Ratio (X)6.955.334.352.743.62
Interest Coverage Ratio (Post Tax) (X)4.012.452.202.202.02
Enterprise Value (Cr.)13655.3715266.2211143.868769.2610095.39
EV / Net Operating Revenue (X)0.641.051.060.830.81
EV / EBITDA (X)3.755.985.234.116.17
MarketCap / Net Operating Revenue (X)0.270.550.400.170.26
Retention Ratios (%)97.6694.2093.970.0090.23
Price / BV (X)0.681.320.760.330.66
Price / Net Operating Revenue (X)0.270.550.400.170.26
EarningsYield0.250.070.130.350.11

Rain Industries Ltd Profitability Ratios (%)

Rain Industries Ltd Liquidity Ratios

Rain Industries Ltd Liquidity Ratios (%)

Rain Industries Ltd Interest Coverage Ratios (X)

Rain Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rain Industries Ltd

Fair Value: ₹1177.71

The stock is undervalued by 474.49% compared to the current price ₹205

*Investments are subject to market risks

Strength and Weakness of Rain Industries Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (11.69 cr) and profit (416.69 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 49.54 and average Dividend Yield of 11.93%.
  2. The stock has a low average ROCE of 12.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 50.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 96.42, which may not be favorable.
  5. The company has higher borrowings (7,766.69) compared to reserves (4,475.69), which may suggest financial risk.

Should I Buy Rain Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rain Industries Ltd:
    1. Net Profit Margin: 7.50%
      • 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: 15.61% (Industry Average ROCE: 8.18%)
      • 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. Interest Coverage Ratio (Post Tax): 4.01
      • 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.
    4. Quick Ratio: 1.21
      • 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.
    5. ✓ Stock P/E: 23.4 (Industry average Stock P/E: 36.8)
      • 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.
    6. ✗ Total Debt / Equity: 1.09
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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