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

Fundamental Analysis of Rane Engine Valve Ltd

Basic Stock Data

Last Updated: June 21, 2024, 10:33 pm

Market Cap 301 Cr.
Current Price 416
High / Low506/262
Stock P/E19.5
Book Value 167
Dividend Yield1.20 %
ROCE12.9 %
ROE13.7 %
Face Value 10.0
PEG Ratio0.18

Competitors of Rane Engine Valve Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Talbros Automotive Components Ltd 1,877 Cr. 304351/13024.0 87.00.20 %21.6 %17.3 % 2.00
Shriram Pistons & Rings Ltd 8,534 Cr. 1,9372,206/80119.4 4370.26 %28.3 %25.4 % 10.0
Autoline Industries Ltd 466 Cr. 119165/67.129.4 34.80.00 %11.1 %15.0 % 10.0
Sundram Fasteners Ltd 27,169 Cr. 1,2931,341/1,00252.1 1630.53 %18.5 %16.2 % 1.00
Sintercom India Ltd 374 Cr. 136141/114325 36.60.00 %4.59 %1.15 % 10.0
Industry Average6,163.71 Cr646.4368.34141.660.91%17.91%16.08%5.29

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales97.9275.4399.6198.30108.72114.91122.89124.06135.71138.01142.50136.42149.82
Expenses92.1578.2696.8693.8599.55111.65115.06116.78119.92127.40134.50124.63133.49
Operating Profit5.77-2.832.754.459.173.267.837.2815.7910.618.0011.7916.33
OPM %5.89%-3.75%2.76%4.53%8.43%2.84%6.37%5.87%11.64%7.69%5.61%8.64%10.90%
Other Income0.100.57-0.13-1.870.77-0.95-0.71-1.77-1.18-0.611.120.49-2.83
Interest1.251.631.972.172.121.942.532.802.842.792.472.472.46
Depreciation5.405.015.124.964.914.854.654.715.074.694.644.695.00
Profit before tax-0.78-8.90-4.47-4.552.91-4.48-0.06-2.006.702.522.015.126.04
Tax %37.18%34.94%30.87%34.73%100.34%30.58%33.33%11.50%27.46%30.95%26.37%31.64%21.52%
Net Profit-0.49-5.79-3.09-2.97-0.01-3.11-0.04-1.774.861.741.483.504.74
EPS in Rs-0.73-8.62-4.60-4.42-0.01-4.63-0.06-2.636.882.412.054.846.55

Last Updated: June 10, 2024, 5:39 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:00 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales263262389344355375423355302382498567
Expenses254231359340331361404344305368463520
Operating Profit93130424141911-3143547
OPM %3%12%8%1%7%4%4%3%-1%4%7%8%
Other Income3-3949209222325-1-5-2
Interest101519151081111991110
Depreciation212028282829312823201919
Profit before tax-19-4431-1878-21-20-25-10-15016
Tax %33%33%25%29%26%19%34%35%37%21%138%27%
Net Profit-13-2923-1358-17-14-16-6-12-011
EPS in Rs-24.48-56.4745.58-18.6685.86-25.39-20.20-24.32-9.06-17.65-0.0815.84
Dividend Payout %0%0%5%0%3%0%0%0%0%0%0%32%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-123.08%179.31%-156.52%546.15%-129.31%17.65%-14.29%62.50%-100.00%100.00%
Change in YoY Net Profit Growth (%)0.00%302.39%-335.83%702.68%-675.46%146.96%-31.93%76.79%-162.50%200.00%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:6%
3 Years:23%
TTM:14%
Compounded Profit Growth
10 Years:3%
5 Years:26%
3 Years:37%
TTM:317%
Stock Price CAGR
10 Years:1%
5 Years:-2%
3 Years:10%
1 Year:48%
Return on Equity
10 Years:-11%
5 Years:-8%
3 Years:0%
Last Year:14%

Last Updated: June 14, 2024, 7:02 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5555777777777
Reserves99875811096153134121104988797105
Borrowings10411114115314384108133121115129137120
Other Liabilities5448467464627183718389111120
Total Liabilities263251250343310306320343303302312352352
Fixed Assets13615013317316114113212510992828686
CWIP127146334622556
Investments0011110111223
Other Assets11494102163145162184210191207223259258
Total Assets263251250343310306320343303302312352352

Reserves and Borrowings Chart

Rane Engine Valve Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1437311721-41522821-1721
Cash from Investing Activity -22-28-5121580-20-25-717-14-19
Cash from Financing Activity 4-517-39-27-761515-23-1586
Net Cash Flow-54-3-1-0110-8-223-237

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-102.00-110.00-123.00-139.00-60.00-94.00-114.00-110.00-118.00-115.00-102.00-76.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days444864646877726494767973
Inventory Days150158155128138140167192152213155129
Days Payable11312412199118120121120153129132117
Cash Conversion Cycle8282989389971181369315910286
Working Capital Days20-7444163738188911018473
ROCE %-5%6%2%-8%-1%-5%-4%-6%-10%-1%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters54.84%54.84%54.84%54.84%55.12%55.12%55.12%57.31%58.32%58.32%58.32%58.32%
DIIs1.31%1.22%0.63%0.63%0.63%0.63%0.63%0.60%0.55%0.07%0.06%0.06%
Government0.39%0.39%0.39%0.39%0.39%0.39%0.39%0.37%0.36%0.36%0.36%0.36%
Public43.46%43.55%44.13%44.13%43.86%43.86%43.86%41.73%40.77%41.24%41.25%41.25%
No. of Shareholders7,2097,5967,6757,8147,7537,6267,7327,8047,8507,3107,2607,594

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.)15.93-0.09-17.65-9.06-24.31
Diluted EPS (Rs.)15.93-0.09-17.65-9.06-24.31
Cash EPS (Rs.)42.1627.2212.1125.1617.48
Book Value[Excl.RevalReserv]/Share (Rs.)167.10148.53144.58156.49165.18
Book Value[Incl.RevalReserv]/Share (Rs.)167.10148.53144.58156.49165.18
Dividend / Share (Rs.)5.000.000.000.000.00
Revenue From Operations / Share (Rs.)783.89704.77568.56449.18528.26
PBDIT / Share (Rs.)69.5851.3024.45-1.1019.81
PBIT / Share (Rs.)43.2823.99-5.31-35.33-21.99
PBT / Share (Rs.)21.690.22-22.34-14.43-37.63
Net Profit / Share (Rs.)15.85-0.08-17.65-9.06-24.32
PBDIT Margin (%)8.877.274.30-0.243.74
PBIT Margin (%)5.523.40-0.93-7.86-4.16
PBT Margin (%)2.760.03-3.92-3.21-7.12
Net Profit Margin (%)2.02-0.01-3.10-2.01-4.60
Return on Networth / Equity (%)9.48-0.05-12.20-5.79-14.72
Return on Capital Employeed (%)17.6710.16-2.45-13.69-9.29
Return On Assets (%)3.23-0.01-3.80-2.01-5.40
Long Term Debt / Equity (X)0.350.420.310.490.30
Total Debt / Equity (X)1.011.301.310.971.00
Asset Turnover Ratio (%)1.611.501.240.991.10
Current Ratio (X)1.221.161.061.281.07
Quick Ratio (X)0.720.660.520.840.53
Inventory Turnover Ratio (X)2.612.342.231.651.76
Interest Coverage Ratio (X)4.943.582.08-0.091.27
Interest Coverage Ratio (Post Tax) (X)2.661.65-0.05-2.46-0.55
Enterprise Value (Cr.)340.48272.82288.09254.85200.87
EV / Net Operating Revenue (X)0.600.540.750.840.56
EV / EBITDA (X)6.777.5317.53-344.3915.09
MarketCap / Net Operating Revenue (X)0.390.290.420.580.25
Price / BV (X)1.831.381.661.670.81
Price / Net Operating Revenue (X)0.390.290.420.580.25
EarningsYield0.050.00-0.07-0.03-0.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 451.49

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: 8.53% compared to the current price 416

Intrinsic Value: 949.61

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: 128.27% compared to the current price ₹416

Last 5 Year EPS CAGR: 110.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of -2.08%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 62.67, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 102.92, which may not be favorable.
    4. The company has higher borrowings (124.83) compared to reserves (104.92), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (376.25) and profit (-3.92).

    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 Engine Valve Ltd:
      1. Net Profit Margin: 2.02%
        • 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: 17.67% (Industry Average ROCE: 12.98%)
        • 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%: 9.48% (Industry Average ROE: 11.65%)
        • 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): 2.66
        • 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: 0.72
        • 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: 19.5 (Industry average Stock P/E: 82.58)
        • 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: 1.01
        • 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 Engine Valve Ltd. is a Public Limited Listed company incorporated on 09/03/1972 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L74999TN1972PLC006127 and registration number is 006127. Currently Company is involved in the business activities of Manufacture of engines and turbines, except aircraft, vehicle and cycle engines. Company’s Total Operating Revenue is Rs. 382.07 Cr. and Equity Capital is Rs. 6.72 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Auto Ancl - Engine PartsMaithri, Chennai (Madras) Tamil Nadu 600086investorservices@ranegroup.com
    http://www.ranegroup.com
    Management
    NamePosition Held
    Mr. L GaneshChairman
    Mr. Harish LakshmanVice Chairman
    Mr. N Ramesh RajanDirector
    Ms. Vasudha SundararamanDirector
    Mr. Pradip Kumar BishnoiDirector
    Mr. Anil Kumar Venkat EpurDirector
    Dr.(Ms.) Brinda JagirdarDirector

    FAQ

    What is the latest fair value of Rane Engine Valve Ltd?

    The latest fair value of Rane Engine Valve Ltd is ₹451.49.

    What is the Market Cap of Rane Engine Valve Ltd?

    The Market Cap of Rane Engine Valve Ltd is 301 Cr..

    What is the current Stock Price of Rane Engine Valve Ltd as on 23 June 2024?

    The current stock price of Rane Engine Valve Ltd as on 23 June 2024 is ₹416.

    What is the High / Low of Rane Engine Valve Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Rane Engine Valve Ltd stocks is 506/262.

    What is the Stock P/E of Rane Engine Valve Ltd?

    The Stock P/E of Rane Engine Valve Ltd is 19.5.

    What is the Book Value of Rane Engine Valve Ltd?

    The Book Value of Rane Engine Valve Ltd is 167.

    What is the Dividend Yield of Rane Engine Valve Ltd?

    The Dividend Yield of Rane Engine Valve Ltd is 1.20 %.

    What is the ROCE of Rane Engine Valve Ltd?

    The ROCE of Rane Engine Valve Ltd is 12.9 %.

    What is the ROE of Rane Engine Valve Ltd?

    The ROE of Rane Engine Valve Ltd is 13.7 %.

    What is the Face Value of Rane Engine Valve Ltd?

    The Face Value of Rane Engine Valve 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 Engine Valve 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