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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rane Brake Lining Ltd

About the Company - Rane Brake Lining Ltd

Rane Brake Lining Ltd. is a Public Limited Listed company incorporated on 17/12/2004 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L63011TN2004PLC054948 and registration number is 054948. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 505.55 Cr. and Equity Capital is Rs. 7.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Susp. & Braking - OthersMaithri, No.132, Cathedral Road, Chennai (Madras) Tamil Nadu 600086investorservices@ranegroup.com
http://www.ranegroup.com
Management
NamePosition Held
Mr. L GaneshChairman
Mr. Harish LakshmanDirector
Mr. Yasuji IshiiNominee Director
Mr. Srivatsan Coimbatore NatarajanDirector
Mr. Ashok MalhotraDirector

Rane Brake Lining Ltd. Share Price Update

Share PriceValue
Today₹793.00
Previous Day₹802.55

Basic Stock Data of Rane Brake Lining Ltd

Market Cap 618 Cr.
Current Price 799
High / Low945/585
Stock P/E16.7
Book Value 332
Dividend Yield3.13 %
ROCE17.7 %
ROE13.3 %
Face Value 10.0

Data Source: screener.in

Competitors of Rane Brake Lining Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sundaram Brake Linings Ltd 294 Cr. 747788/27125.1 2330.00 %0.57 %5.43 % 10.0
Industry Average294.00 Cr747.0025.10233.000.00%0.57%5.43%10.00

Rane Brake Lining Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales105.77132.60148.6694.28122.50134.47154.31139.33141.15153.33164.87152.33158.03
Expenses85.06108.67124.6790.72112.08123.57135.05129.40130.95137.27144.82140.73140.45
Operating Profit20.7123.9323.993.5610.4210.9019.269.9310.2016.0620.0511.6017.58
OPM %19.58%18.05%16.14%3.78%8.51%8.11%12.48%7.13%7.23%10.47%12.16%7.62%11.12%
Other Income1.910.993.713.653.662.681.982.563.571.300.960.730.20
Interest0.000.010.240.000.000.000.020.000.000.020.030.000.00
Depreciation5.965.846.295.265.295.345.524.834.895.045.245.135.16
Profit before tax16.6619.0721.171.958.798.2415.707.668.8812.3015.747.2012.62
Tax %30.79%32.41%32.50%11.28%38.45%16.50%16.75%24.41%27.03%25.45%23.63%28.06%24.01%
Net Profit11.5312.8914.291.735.416.8813.075.796.489.1712.025.189.59
EPS in Rs14.5716.4118.412.247.008.9016.917.498.3811.8615.556.7012.41

Rane Brake Lining Ltd Quarterly Chart

Rane Brake Lining Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales348365370399427466482514471424506599629
Expenses309332330353372393407446410363461542563
Operating Profit39334045547475686161445665
OPM %11%9%11%11%13%16%16%13%13%14%9%9%10%
Other Income43223-113610111283
Interest7786310000000
Depreciation15181821192024242624212021
Profit before tax22111721354355494547354548
Tax %26%17%-3%22%27%18%35%26%23%32%22%25%
Net Profit1691716263536373432273336
EPS in Rs20.4511.5021.7420.3532.5544.1345.1746.1543.3940.9835.0243.2946.52
Dividend Payout %34%35%34%34%31%34%34%34%39%61%57%58%

Rane Brake Lining Ltd Profit & Loss Yearly Chart

Rane Brake Lining Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:4%
3 Years:8%
TTM:9%
Compounded Profit Growth
10 Years:14%
5 Years:-2%
3 Years:-1%
TTM:5%
Stock Price CAGR
10 Years:21%
5 Years:8%
3 Years:-2%
1 Year:18%
Return on Equity
10 Years:17%
5 Years:14%
3 Years:13%
Last Year:13%

Rane Brake Lining Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital8888888888888
Reserves8994104114130159180202221230235253249
Borrowings769081522760000001
Other Liabilities7970758291105123146131146156113116
Total Liabilities252262268255256278311356359384399374373
Fixed Assets121123133117104121114118133118114118116
CWIP319012042023414
Investments00000001111242
Other Assets128120134137149156193235226264280227241
Total Assets252262268255256278311356359384399374373

Rane Brake Lining Ltd Reserves and Borrowings Chart

Rane Brake Lining Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 313329455262484473461149
Cash from Investing Activity -30-35-10-5-8-34-19-25-35-10-18-48
Cash from Financing Activity -01-17-43-44-28-21-15-15-24-22-16
Net Cash Flow0-02-20-1842412-28-14

Rane Brake Lining Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days73758581857891100761129967
Inventory Days5754554954585673102118137100
Days Payable9691949112413814216115120516971
Cash Conversion Cycle3438453916-161227246697
Working Capital Days313639354232384335516761
ROCE %18%10%13%15%23%35%31%25%20%20%15%18%

Rane Brake Lining Ltd Financial Efficiency Indicators Chart

Rane Brake Lining Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters67.51%68.33%68.60%68.60%68.60%70.93%70.93%70.93%70.93%70.93%70.93%70.93%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.13%0.00%0.00%0.00%0.08%
DIIs9.60%9.71%9.75%9.56%8.70%4.75%3.56%3.56%3.56%3.56%3.56%3.56%
Public22.90%21.95%21.65%21.84%22.71%24.32%25.50%25.39%25.53%25.52%25.53%25.45%
No. of Shareholders12,64412,20212,36413,73815,63317,35517,14316,13415,67115,49615,55215,876

Rane Brake Lining Ltd Shareholding Pattern Chart

No. of Rane Brake Lining Ltd Shareholders

This stock is not held by any mutual fund

Rane Brake Lining Ltd ROCE Trend

Rane Brake Lining Ltd EPS Trend

Rane Brake Lining Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)43.2935.0340.4543.3946.15
Diluted EPS (Rs.)43.2935.0340.4543.3946.15
Cash EPS (Rs.)69.1662.7372.5476.6576.84
Book Value[Excl.RevalReserv]/Share (Rs.)337.88314.15306.66289.28265.19
Book Value[Incl.RevalReserv]/Share (Rs.)337.88314.15306.66289.28265.19
Dividend / Share (Rs.)25.0020.0025.0017.0015.50
Revenue From Operations / Share (Rs.)774.64654.01546.31595.42649.67
PBDIT / Share (Rs.)83.6173.4492.4089.7594.64
PBIT / Share (Rs.)57.7445.7360.8956.5163.98
PBT / Share (Rs.)57.6744.8560.5756.4862.34
Net Profit / Share (Rs.)43.2835.0241.0343.4146.18
PBDIT Margin (%)10.7911.2216.9115.0714.56
PBIT Margin (%)7.456.9911.149.499.84
PBT Margin (%)7.446.8511.089.489.59
Net Profit Margin (%)5.585.357.517.297.10
Return on Networth / Equity (%)12.8111.1413.3815.0017.41
Return on Capital Employeed (%)16.7414.2119.2919.2223.79
Return On Assets (%)8.946.788.289.5510.26
Asset Turnover Ratio (%)1.551.291.141.321.54
Current Ratio (X)2.211.761.781.651.52
Quick Ratio (X)1.361.091.311.151.17
Inventory Turnover Ratio (X)3.603.273.034.055.98
Dividend Payout Ratio (NP) (%)46.2071.3727.3841.6740.45
Dividend Payout Ratio (CP) (%)28.9139.8415.4923.6024.31
Earning Retention Ratio (%)53.8028.6372.6258.3359.55
Cash Earning Retention Ratio (%)71.0960.1684.5176.4075.69
Interest Coverage Ratio (X)1292.602838.50286.443549.50191.95
Interest Coverage Ratio (Post Tax) (X)670.201387.50128.201718.0097.00
Enterprise Value (Cr.)479.45451.83565.27238.24461.63
EV / Net Operating Revenue (X)0.800.891.340.500.89
EV / EBITDA (X)7.427.967.893.366.17
MarketCap / Net Operating Revenue (X)0.810.931.450.580.92
Retention Ratios (%)53.7928.6272.6158.3259.54
Price / BV (X)1.861.952.591.212.27
Price / Net Operating Revenue (X)0.810.931.450.580.92
EarningsYield0.060.050.050.120.07

Rane Brake Lining Ltd Profitability Ratios (%)

Rane Brake Lining Ltd Liquidity Ratios

Rane Brake Lining Ltd Liquidity Ratios (%)

Rane Brake Lining Ltd Interest Coverage Ratios (X)

Rane Brake Lining Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rane Brake Lining Ltd

Fair Value: ₹760.49

The stock is overvalued by 4.82% compared to the current price ₹799

*Investments are subject to market risks

Strength and Weakness of Rane Brake Lining Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 20.25%, which is a positive sign.
  2. The company has higher reserves (173.85 cr) compared to borrowings (25.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (461.54 cr) and profit (36.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 86.77 and average Dividend Yield of 8.98%.
  2. The stock has a high average Working Capital Days of 42.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 33.58, which may not be favorable.

Should I Buy Rane Brake Lining Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rane Brake Lining Ltd:
    1. Net Profit Margin: 5.58%
      • 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: 16.74% (Industry Average ROCE: 0.57%)
      • 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): 670.20
      • 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: 1.36
      • 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: 16.6 (Industry average Stock P/E: 25.6)
      • 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: N/A
      • 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 Rane Brake Lining 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