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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rane Brake Lining Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:23 pm

Market Cap 762 Cr.
Current Price 984
High / Low1,093/643
Stock P/E18.5
Book Value 364
Dividend Yield3.05 %
ROCE20.5 %
ROE15.2 %
Face Value 10.0
PEG Ratio4.96

Competitors of Rane Brake Lining Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sundaram Brake Linings Ltd 304 Cr. 770939/35130.1 2420.00 %10.9 %11.2 % 10.0
Industry Average304.00 Cr770.0030.10242.000.00%10.90%11.20%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales14994122134154139141153165152158164186
Expenses12591112124135129131137145141140146158
Operating Profit2441011191010162012181828
OPM %16%4%9%8%12%7%7%10%12%8%11%11%15%
Other Income444323411101-1
Interest0000000000000
Depreciation6555655555556
Profit before tax21298168912167131421
Tax %32%11%38%16%17%24%27%25%24%28%24%25%27%
Net Profit1425713669125101015
EPS in Rs18.412.247.008.9016.917.498.3811.8615.556.7012.4113.0919.91

Last Updated: June 10, 2024, 5:38 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:48 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales365370399427466482514471424506599661
Expenses332330353372393407446410363461542585
Operating Profit334045547475686161445675
OPM %9%11%11%13%16%16%13%13%14%9%9%11%
Other Income3223-113610111281
Interest786310000000
Depreciation181821192024242624212022
Profit before tax111721354355494547354554
Tax %17%-3%22%27%18%35%26%23%32%22%25%26%
Net Profit91716263536373432273340
EPS in Rs11.5021.7420.3532.5544.1345.1746.1543.3940.9835.0243.2952.11
Dividend Payout %35%34%34%31%34%34%34%39%61%57%58%58%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)88.89%-5.88%62.50%34.62%2.86%2.78%-8.11%-5.88%-15.62%22.22%21.21%
Change in YoY Net Profit Growth (%)0.00%-94.77%68.38%-27.88%-31.76%-0.08%-10.89%2.23%-9.74%37.85%-1.01%

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:20%
5 Years:8%
3 Years:2%
1 Year:21%
Return on Equity
10 Years:17%
5 Years:14%
3 Years:13%
Last Year:13%

Last Updated: May 1, 2024, 8:36 am

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-57.00-41.00-7.0027.0068.0075.0068.0061.0061.0044.0056.0074.00

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

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters68.60%68.60%68.60%70.93%70.93%70.93%70.93%70.93%70.93%70.93%70.93%70.93%
FIIs0.00%0.00%0.00%0.00%0.01%0.13%0.00%0.00%0.00%0.08%0.34%0.01%
DIIs9.75%9.56%8.70%4.75%3.56%3.56%3.56%3.56%3.56%3.56%3.67%3.56%
Public21.65%21.84%22.71%24.32%25.50%25.39%25.53%25.52%25.53%25.45%25.06%25.53%
No. of Shareholders12,36413,73815,63317,35517,14316,13415,67115,49615,55215,87615,53516,447

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)52.1143.2935.0340.4543.39
Diluted EPS (Rs.)52.1143.2935.0340.4543.39
Cash EPS (Rs.)80.3669.1662.7372.5476.65
Book Value[Excl.RevalReserv]/Share (Rs.)363.62337.88314.15306.66289.28
Book Value[Incl.RevalReserv]/Share (Rs.)363.62337.88314.15306.66289.28
Dividend / Share (Rs.)30.0025.0020.0025.0017.00
Revenue From Operations / Share (Rs.)854.89774.64654.01546.31595.42
PBDIT / Share (Rs.)100.2883.6173.4492.4089.75
PBIT / Share (Rs.)72.0357.7445.7360.8956.51
PBT / Share (Rs.)70.4157.6744.8560.5756.48
Net Profit / Share (Rs.)52.1143.2835.0241.0343.41
PBDIT Margin (%)11.7310.7911.2216.9115.07
PBIT Margin (%)8.427.456.9911.149.49
PBT Margin (%)8.237.446.8511.089.48
Net Profit Margin (%)6.095.585.357.517.29
Return on Networth / Equity (%)14.3312.8111.1413.3815.00
Return on Capital Employeed (%)19.3216.7414.2119.2919.22
Return On Assets (%)10.058.946.788.289.55
Asset Turnover Ratio (%)1.711.551.291.141.32
Current Ratio (X)2.262.211.761.781.65
Quick Ratio (X)1.431.361.091.311.15
Inventory Turnover Ratio (X)3.883.603.273.034.05
Dividend Payout Ratio (NP) (%)0.0046.2071.3727.3841.67
Dividend Payout Ratio (CP) (%)0.0028.9139.8415.4923.60
Earning Retention Ratio (%)0.0053.8028.6372.6258.33
Cash Earning Retention Ratio (%)0.0071.0960.1684.5176.40
Interest Coverage Ratio (X)2584.001292.602838.50286.443549.50
Interest Coverage Ratio (Post Tax) (X)1384.33670.201387.50128.201718.00
Enterprise Value (Cr.)546.76479.45451.83565.27238.24
EV / Net Operating Revenue (X)0.820.800.891.340.50
EV / EBITDA (X)7.057.427.967.893.36
MarketCap / Net Operating Revenue (X)0.830.810.931.450.58
Retention Ratios (%)0.0053.7928.6272.6158.32
Price / BV (X)1.961.861.952.591.21
Price / Net Operating Revenue (X)0.830.810.931.450.58
EarningsYield0.070.060.050.050.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,054.79

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: 7.19% compared to the current price 984

Intrinsic Value: 1,094.14

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.

Undervalued: 11.19% compared to the current price ₹984

Last 5 Year EPS CAGR: 3.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.25%, which is a positive sign.
  2. The company has higher reserves (182.92 cr) compared to borrowings (21.42 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (473.67 cr) and profit (38.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 42.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 33.58, which may not be favorable.

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 Rane Brake Lining Ltd:
    1. Net Profit Margin: 6.09%
      • 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: 19.32% (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%: 14.33% (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): 1384.33
      • 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: 1.43
      • 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: 18.5 (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: 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 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

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

FAQ

What is the latest fair value of Rane Brake Lining Ltd?

The latest fair value of Rane Brake Lining Ltd is ₹1054.79.

What is the Market Cap of Rane Brake Lining Ltd?

The Market Cap of Rane Brake Lining Ltd is 762 Cr..

What is the current Stock Price of Rane Brake Lining Ltd as on 25 June 2024?

The current stock price of Rane Brake Lining Ltd as on 25 June 2024 is ₹984.

What is the High / Low of Rane Brake Lining Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rane Brake Lining Ltd stocks is 1,093/643.

What is the Stock P/E of Rane Brake Lining Ltd?

The Stock P/E of Rane Brake Lining Ltd is 18.5.

What is the Book Value of Rane Brake Lining Ltd?

The Book Value of Rane Brake Lining Ltd is 364.

What is the Dividend Yield of Rane Brake Lining Ltd?

The Dividend Yield of Rane Brake Lining Ltd is 3.05 %.

What is the ROCE of Rane Brake Lining Ltd?

The ROCE of Rane Brake Lining Ltd is 20.5 %.

What is the ROE of Rane Brake Lining Ltd?

The ROE of Rane Brake Lining Ltd is 15.2 %.

What is the Face Value of Rane Brake Lining Ltd?

The Face Value of Rane Brake Lining Ltd is 10.0.

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