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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rane Engine Valve Ltd

About the Company - Rane Engine Valve Ltd

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

Rane Engine Valve Ltd. Share Price Update

Share PriceValue
Today₹366.60
Previous Day₹374.15

Basic Stock Data of Rane Engine Valve Ltd

Market Cap 262 Cr.
Current Price 362
High / Low506/195
Stock P/E18.9
Book Value 156
Dividend Yield0.00 %
ROCE7.48 %
ROE7.20 %
Face Value 10.0

Data Source: screener.in

Competitors of Rane Engine Valve Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Talbros Automotive Components Ltd 1,756 Cr. 284348/76.022.8 72.90.21 %19.2 %16.5 % 2.00
Shriram Pistons & Rings Ltd 7,404 Cr. 1,6811,867/49118.0 3940.29 %24.7 %20.8 % 10.0
Autoline Industries Ltd 555 Cr. 142165/60.165.2 20.60.00 %6.83 %1.96 % 10.0
Sintercom India Ltd 353 Cr. 128140/95.2360 36.30.00 %3.65 %0.07 % 10.0
Sundram Fasteners Ltd 22,726 Cr. 1,0821,341/95244.2 1530.60 %19.3 %17.4 % 1.00
Industry Average6,558.80 Cr663.40102.04135.360.22%14.74%11.35%6.60

Rane Engine Valve Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales82.0791.5797.9275.4399.6198.30108.72114.91122.89124.06135.71138.01142.50
Expenses79.5186.9692.1578.2696.8693.8599.55111.65115.06116.78119.92127.40134.50
Operating Profit2.564.615.77-2.832.754.459.173.267.837.2815.7910.618.00
OPM %3.12%5.03%5.89%-3.75%2.76%4.53%8.43%2.84%6.37%5.87%11.64%7.69%5.61%
Other Income0.4924.480.100.57-0.13-1.870.77-0.95-0.71-1.77-1.18-0.611.12
Interest2.572.101.251.631.972.172.121.942.532.802.842.792.47
Depreciation5.775.535.405.015.124.964.914.854.654.715.074.694.64
Profit before tax-5.2921.46-0.78-8.90-4.47-4.552.91-4.48-0.06-2.006.702.522.01
Tax %34.59%34.02%37.18%34.94%30.87%34.73%100.34%30.58%33.33%11.50%27.46%30.95%26.37%
Net Profit-3.4614.16-0.49-5.79-3.09-2.97-0.01-3.11-0.04-1.774.861.741.48
EPS in Rs-5.1521.07-0.73-8.62-4.60-4.42-0.01-4.63-0.06-2.636.882.412.05

Rane Engine Valve Ltd Quarterly Chart

Rane Engine Valve Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales307263262389344355375423355302382498540
Expenses266254231359340331361404344305368463499
Operating Profit4193130424141911-3143542
OPM %13%3%12%8%1%7%4%4%3%-1%4%7%8%
Other Income143-3949209222325-1-5-2
Interest8101519151081111991111
Depreciation19212028282829312823201919
Profit before tax29-19-4431-1878-21-20-25-10-1509
Tax %28%33%33%25%29%26%19%34%35%37%21%138%
Net Profit21-13-2923-1358-17-14-16-6-12-06
EPS in Rs40.32-24.48-56.4745.58-18.6685.86-25.39-20.20-24.32-9.06-17.65-0.088.71
Dividend Payout %26%0%0%5%0%3%0%0%0%0%0%0%

Rane Engine Valve Ltd Profit & Loss Yearly Chart

Rane Engine Valve Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:6%
3 Years:12%
TTM:17%
Compounded Profit Growth
10 Years:4%
5 Years:10%
3 Years:16%
TTM:5648%
Stock Price CAGR
10 Years:10%
5 Years:-4%
3 Years:10%
1 Year:83%
Return on Equity
10 Years:-12%
5 Years:-13%
3 Years:-14%
Last Year:-7%

Rane Engine Valve Ltd 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

Rane Engine Valve Ltd 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

Rane Engine Valve Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days534448646468777264947679
Inventory Days159150158155128138140167192152213155
Days Payable9611312412199118120121120153129132
Cash Conversion Cycle11682829893899711813693159102
Working Capital Days4220-74441637381889110184
ROCE %19%-5%6%2%-8%-1%-5%-4%-6%-10%-1%7%

Rane Engine Valve Ltd Financial Efficiency Indicators Chart

Rane Engine Valve Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters54.84%54.84%54.84%54.84%54.84%54.84%55.12%55.12%55.12%57.31%58.32%58.32%
DIIs1.31%1.31%1.31%1.22%0.63%0.63%0.63%0.63%0.63%0.60%0.55%0.07%
Government0.39%0.39%0.39%0.39%0.39%0.39%0.39%0.39%0.39%0.37%0.36%0.36%
Public43.46%43.46%43.46%43.55%44.13%44.13%43.86%43.86%43.86%41.73%40.77%41.24%
No. of Shareholders6,9026,7707,2097,5967,6757,8147,7537,6267,7327,8047,8507,310

Rane Engine Valve Ltd Shareholding Pattern Chart

No. of Rane Engine Valve Ltd Shareholders

This stock is not held by any mutual fund

Rane Engine Valve Ltd ROCE Trend

Rane Engine Valve Ltd EPS Trend

Rane Engine Valve Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-0.09-17.65-9.06-24.31-20.20
Diluted EPS (Rs.)-0.09-17.65-9.06-24.31-20.20
Cash EPS (Rs.)27.2212.1125.1617.4825.24
Book Value[Excl.RevalReserv]/Share (Rs.)148.53144.58156.49165.18189.45
Book Value[Incl.RevalReserv]/Share (Rs.)148.53144.58156.49165.18189.45
Revenue From Operations / Share (Rs.)704.77568.56449.18528.26628.91
PBDIT / Share (Rs.)51.3024.45-1.1019.8129.64
PBIT / Share (Rs.)23.99-5.31-35.33-21.99-15.79
PBT / Share (Rs.)0.22-22.34-14.43-37.63-30.49
Net Profit / Share (Rs.)-0.08-17.65-9.06-24.32-20.19
PBDIT Margin (%)7.274.30-0.243.744.71
PBIT Margin (%)3.40-0.93-7.86-4.16-2.51
PBT Margin (%)0.03-3.92-3.21-7.12-4.84
Net Profit Margin (%)-0.01-3.10-2.01-4.60-3.21
Return on Networth / Equity (%)-0.05-12.20-5.79-14.72-10.65
Return on Capital Employeed (%)10.16-2.45-13.69-9.29-6.05
Return On Assets (%)-0.01-3.80-2.01-5.40-3.95
Long Term Debt / Equity (X)0.420.310.490.300.27
Total Debt / Equity (X)1.301.310.971.000.91
Asset Turnover Ratio (%)1.501.240.991.101.27
Current Ratio (X)1.161.061.281.071.08
Quick Ratio (X)0.660.520.840.530.60
Inventory Turnover Ratio (X)2.342.231.651.762.66
Interest Coverage Ratio (X)3.582.08-0.091.272.02
Interest Coverage Ratio (Post Tax) (X)1.65-0.05-2.46-0.55-0.37
Enterprise Value (Cr.)272.82288.09254.85200.87425.21
EV / Net Operating Revenue (X)0.540.750.840.561.01
EV / EBITDA (X)7.5317.53-344.3915.0921.35
MarketCap / Net Operating Revenue (X)0.290.420.580.250.73
Price / BV (X)1.381.661.670.812.44
Price / Net Operating Revenue (X)0.290.420.580.250.73
EarningsYield0.00-0.07-0.03-0.18-0.04

Rane Engine Valve Ltd Profitability Ratios (%)

Rane Engine Valve Ltd Liquidity Ratios

Rane Engine Valve Ltd Liquidity Ratios (%)

Rane Engine Valve Ltd Interest Coverage Ratios (X)

Rane Engine Valve Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rane Engine Valve Ltd

Fair Value: ₹216.53

The stock is overvalued by 40.18% compared to the current price ₹362

*Investments are subject to market risks

Strength and Weakness of Rane Engine Valve Ltd

StrengthWeakness
    1. The stock is trading at a high valuation with an average P/B ratio of -10.89 and average Dividend Yield of -3.81%.
    2. The stock has a low average ROCE of -0.50%, which may not be favorable.
    3. The stock has a high average Working Capital Days of 60.08, which may not be favorable.
    4. The stock has a high average Cash Conversion Cycle of 105.42, which may not be favorable.
    5. The company has higher borrowings (123.00) compared to reserves (103.77), which may suggest financial risk.
    6. The company has not shown consistent growth in sales (368.85) and profit (-1.92).

    Should I Buy Rane Engine Valve Ltd Share Now?

    • Considering various financial indicators, investors might exercise caution regarding investment in Rane Engine Valve Ltd:
      1. Net Profit Margin: -0.01%
        • 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: 10.16% (Industry Average ROCE: 14.74%)
        • 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): 1.65
        • 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: 0.66
        • 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: 18.9 (Industry average Stock P/E: 102.04)
        • 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: 1.30
        • 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 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