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

Fundamental Analysis of Rane Holdings Ltd

About the Company - Rane Holdings Ltd

Rane Holdings Ltd. is a Public Limited Listed company incorporated on 03/03/1936 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L35999TN1936PLC002202 and registration number is 002202. Currently Company is involved in the business activities of Leasing of nonfinancial intangible assets. Company’s Total Operating Revenue is Rs. 88.80 Cr. and Equity Capital is Rs. 14.28 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments�Maithri�, 132, Cathedral Road, Chennai (Madras) Tamil Nadu 600086investorservices@ranegroup.com
http://www.ranegroup.com
Management
NamePosition Held
Mr. L LakshmanChairman Emeritus
Mr. L GaneshChairman & Managing Director
Mr. Harish LakshmanVice Chairman & Jt Manag. Dir.
Dr.(Ms.) Sheela BhideDirector
Dr. V SumantranDirector
Mr. Rajeev GuptaDirector
Mr. Pradip Kumar BishnoiDirector

Rane Holdings Ltd. Share Price Update

Share PriceValue
Today₹1,174.30
Previous Day₹1,150.00

Basic Stock Data of Rane Holdings Ltd

Market Cap 1,606 Cr.
Current Price 1,125
High / Low1,385/792
Stock P/E12.4
Book Value 592
Dividend Yield1.51 %
ROCE11.1 %
ROE8.79 %
Face Value 10.0

Data Source: screener.in

Competitors of Rane Holdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Paisalo Digital Ltd 7,350 Cr. 164164/42.044.4 27.80.04 %11.4 %8.92 % 1.00
Pilani Investment & Industries Corporation Ltd 3,466 Cr. 3,1303,397/1,60216.5 11,4110.49 %2.26 %2.21 % 10.0
Sundaram Finance Holdings Ltd 5,038 Cr. 227233/74.013.9 1791.32 %1.43 %7.23 % 5.00
Naga Dhunseri Group Ltd 250 Cr. 2,4962,899/1,2036.75 7,9870.10 %10.6 %10.4 % 10.0
Vardhman Holdings Ltd 1,021 Cr. 3,2003,788/2,4115.09 10,0600.16 %7.66 %7.77 % 10.0
Industry Average53.2 Cr79.817.3346.960.42%6.67%7.31%7.2

Rane Holdings Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales516664670521692681783817879874938894928
Expenses474596639509650648741763817796877817858
Operating Profit42683112423342546278617870
OPM %8%10%5%2%6%5%5%7%7%9%6%9%8%
Other Income113654627278181740-0-6-64
Interest111077910881114171917
Depreciation29303131323233333336403535
Profit before tax1364-32027188313568318-46
Tax %64%39%-645%-6%39%43%252%33%34%25%331%31%212%
Net Profit539-20211711-13212351-81251
EPS in Rs2.9217.32-15.6312.7210.546.74-13.1014.0414.0828.69-13.208.9428.46

Rane Holdings Ltd Quarterly Chart

Rane Holdings Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,8351,9381,9282,2112,4072,2582,3452,5532,1592,0382,6953,5113,634
Expenses1,6081,7651,7291,9882,1742,0232,1012,3182,0131,9512,5193,1903,348
Operating Profit22717319822323323524423614687176321287
OPM %12%9%10%10%10%10%10%9%7%4%7%9%8%
Other Income2022-3462361761551362341619-31
Interest38404347454446505140345066
Depreciation677984106114106118126128120129142146
Profit before tax1427738133109261235195-10-317413844
Tax %28%36%-20%28%29%30%37%41%-5%-93%52%37%
Net Profit10349479779182149116-10-603587107
EPS in Rs50.2326.8830.4249.6945.9093.4191.2572.65-1.91-35.4216.9143.6152.89
Dividend Payout %20%30%21%15%22%9%16%26%-420%0%71%39%

Rane Holdings Ltd Profit & Loss Yearly Chart

Rane Holdings Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:8%
3 Years:18%
TTM:7%
Compounded Profit Growth
10 Years:6%
5 Years:-11%
3 Years:179%
TTM:82%
Stock Price CAGR
10 Years:22%
5 Years:3%
3 Years:24%
1 Year:23%
Return on Equity
10 Years:7%
5 Years:3%
3 Years:0%
Last Year:9%

Rane Holdings Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141414141414141414141414
Reserves413437464530576699790851808750762794830
Borrowings373385429470596459501577633661788866832
Other Liabilities535535532636703670773778708845896914917
Total Liabilities1,3361,3711,4391,6491,8891,8422,0782,2212,1632,2712,4602,5882,594
Fixed Assets661707745809980780805798806801843866736
CWIP37413055213228335234283837
Investments2217263228307347387369379353345344
Other Assets6166066387538607228971,0039371,0561,2361,3391,477
Total Assets1,3361,3711,4391,6491,8891,8422,0782,2212,1632,2712,4602,5882,594

Rane Holdings Ltd Reserves and Borrowings Chart

Rane Holdings Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 15920812819817416013211018013215186
Cash from Investing Activity -120-121-111-120-157-26-66-87-124-96-114-152
Cash from Financing Activity -35-84-17-80-20-129-50-16-33-3665-14
Net Cash Flow430-2-35167240-3420

Rane Holdings Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days585158596558716961877867
Inventory Days69656770717676821049910085
Days Payable8883898810111512210311616312594
Cash Conversion Cycle393435403518254749235357
Working Capital Days262621253027374249476057
ROCE %19%12%13%12%11%17%18%16%3%-1%4%11%

Rane Holdings Ltd Financial Efficiency Indicators Chart

Rane Holdings Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters46.40%46.40%46.40%46.40%46.57%46.57%46.58%46.58%46.58%46.58%46.58%46.58%
FIIs0.00%0.02%0.12%0.24%0.36%0.43%0.58%0.54%0.50%0.47%0.39%0.41%
DIIs15.64%10.65%8.15%4.49%3.65%3.49%1.93%1.91%1.54%1.54%2.02%1.70%
Public37.96%42.93%45.33%48.87%49.42%49.50%50.92%50.97%51.38%51.41%51.02%51.31%
No. of Shareholders12,05715,89818,99218,06618,57617,08515,32814,84414,36414,10114,23614,145

Rane Holdings Ltd Shareholding Pattern Chart

No. of Rane Holdings Ltd Shareholders

Rane Holdings Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Bandhan Transportation and Logistics Fund500001.786.48
Bandhan Small Cap Fund179110.072.32

Rane Holdings Ltd ROCE Trend

Rane Holdings Ltd EPS Trend

Rane Holdings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)43.6116.91-35.42-2.0073.00
Diluted EPS (Rs.)43.6116.91-35.42-2.0073.00
Cash EPS (Rs.)161.04119.9361.1746.3774.97
Book Value[Excl.RevalReserv]/Share (Rs.)735.96704.16690.21737.22784.23
Book Value[Incl.RevalReserv]/Share (Rs.)735.96704.16690.21737.22784.23
Revenue From Operations / Share (Rs.)2456.811874.871425.321509.271785.06
PBDIT / Share (Rs.)244.12142.2193.72119.69175.71
PBIT / Share (Rs.)144.8751.989.4430.4087.39
PBT / Share (Rs.)97.1656.68-2.80-42.5942.33
Net Profit / Share (Rs.)61.7829.70-23.12-42.93-13.35
NP After MI And SOA / Share (Rs.)43.6116.90-35.41-1.9072.64
PBDIT Margin (%)9.937.586.577.939.84
PBIT Margin (%)5.892.770.662.014.89
PBT Margin (%)3.953.02-0.19-2.822.37
Net Profit Margin (%)2.511.58-1.62-2.84-0.74
NP After MI And SOA Margin (%)1.770.90-2.48-0.124.06
Return on Networth / Equity (%)7.703.10-6.61-0.3311.98
Return on Capital Employeed (%)14.235.290.983.189.11
Return On Assets (%)2.400.97-2.21-0.124.64
Long Term Debt / Equity (X)0.410.410.400.310.22
Total Debt / Equity (X)1.061.000.700.650.57
Asset Turnover Ratio (%)0.070.060.040.070.09
Current Ratio (X)1.091.030.990.961.03
Quick Ratio (X)0.700.650.690.590.67
Dividend Payout Ratio (NP) (%)27.500.000.00-791.1726.70
Dividend Payout Ratio (CP) (%)8.390.000.0017.2412.05
Earning Retention Ratio (%)72.500.000.00891.1773.30
Cash Earning Retention Ratio (%)91.610.000.0082.7687.95
Interest Coverage Ratio (X)7.005.943.373.355.22
Interest Coverage Ratio (Post Tax) (X)3.141.04-0.390.840.94
Enterprise Value (Cr.)2279.831817.881537.051175.152425.05
EV / Net Operating Revenue (X)0.640.670.750.540.95
EV / EBITDA (X)6.548.9511.486.889.66
MarketCap / Net Operating Revenue (X)0.350.310.410.210.66
Retention Ratios (%)72.490.000.00891.1773.29
Price / BV (X)1.521.081.100.571.97
Price / Net Operating Revenue (X)0.350.310.410.210.66
EarningsYield0.050.02-0.05-0.010.06

Rane Holdings Ltd Profitability Ratios (%)

Rane Holdings Ltd Liquidity Ratios

Rane Holdings Ltd Liquidity Ratios (%)

Rane Holdings Ltd Interest Coverage Ratios (X)

Rane Holdings Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rane Holdings Ltd

Fair Value: ₹655.00

The stock is overvalued by 41.78% compared to the current price ₹1125

*Investments are subject to market risks

Strength and Weakness of Rane Holdings Ltd

StrengthWeakness
  1. The company has higher reserves (669.54 cr) compared to borrowings (582.31 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.92 cr) and profit (108.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 64.82 and average Dividend Yield of 3.24%.
  2. The stock has a low average ROCE of 11.25%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 37.25, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 37.92, which may not be favorable.

Should I Buy Rane Holdings Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rane Holdings Ltd:
    1. Net Profit Margin: 2.51%
      • 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: 14.23% (Industry Average ROCE: 8.05%)
      • 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): 3.14
      • 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: 0.70
      • 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: 12.4 (Industry average Stock P/E: 33.26)
      • 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: 1.06
      • 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 Holdings 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