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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532661 | NSE: RML

Rane (Madras) Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:56 am

Market Cap 1,450 Cr.
Current Price 891
High / Low 1,529/624
Stock P/E371
Book Value 158
Dividend Yield0.00 %
ROCE6.36 %
ROE43.7 %
Face Value 10.0
PEG Ratio3.43

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Hardy Ltd 169 Cr. 1,126 1,277/38032.7 1720.22 %27.6 %23.3 % 10.0
Rico Auto Industries Ltd 1,152 Cr. 85.2 157/83.530.0 53.30.70 %8.18 %5.55 % 1.00
Rane (Madras) Ltd 1,450 Cr. 891 1,529/624371 1580.00 %6.36 %43.7 % 10.0
Automotive Axles Ltd 2,692 Cr. 1,782 2,257/1,72017.6 5931.80 %26.7 %20.2 % 10.0
Industry Average1,365.75 Cr971.05112.83244.080.68%17.21%23.19%7.75

All Competitor Stocks of

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales411.79340.29458.41437.79505.43549.27600.37583.24621.56588.34611.24521.05518.32
Expenses402.98335.77437.86425.64478.54520.12566.88540.38566.07545.95579.36474.05493.47
Operating Profit8.814.5220.5512.1526.8929.1533.4942.8655.4942.3931.8847.0024.85
OPM %2.14%1.33%4.48%2.78%5.32%5.31%5.58%7.35%8.93%7.21%5.22%9.02%4.79%
Other Income1.1034.8610.1812.214.821.090.2726.86-0.51-17.14-84.821.37-0.64
Interest4.063.695.675.784.505.006.529.3212.8014.4013.4614.6413.87
Depreciation17.9919.2620.0220.3921.3421.8821.9024.5528.2724.3223.9420.8521.92
Profit before tax-12.1416.435.04-1.815.873.365.3435.8513.91-13.47-90.3412.88-11.58
Tax %-21.25%7.30%54.76%-138.12%143.27%197.62%99.06%33.86%31.42%-7.42%119.67%29.43%19.08%
Net Profit-14.7215.232.28-4.31-2.54-3.280.0523.719.54-14.4717.779.09-9.37
EPS in Rs-10.1110.461.48-2.80-1.56-2.020.0314.585.87-8.9010.935.59-5.76

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales8761,1951,4001,5551,2771,2671,7422,3542,239
Expenses7971,1061,2731,4381,2301,2361,6672,1712,092
Operating Profit7989127117473175184147
OPM %9%7%9%8%4%2%4%8%7%
Other Income-211910127526-101
Interest193034353828213557
Depreciation415761666666819791
Profit before tax17134026-45-552658-103
Tax %27%66%40%91%-2%-10%58%49%103%
Net Profit134242-46-6111303
EPS in Rs12.054.1120.872.02-36.26-41.986.5518.461.86
Dividend Payout %37%146%58%420%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-69.23%500.00%-91.67%-2400.00%-32.61%118.03%172.73%-90.00%
Change in YoY Net Profit Growth (%)0.00%569.23%-591.67%-2308.33%2367.39%150.64%54.69%-262.73%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:21%
TTM:-13%
Compounded Profit Growth
10 Years:%
5 Years:114%
3 Years:56%
TTM:-97%
Stock Price CAGR
10 Years:8%
5 Years:28%
3 Years:39%
1 Year:5%
Return on Equity
10 Years:%
5 Years:2%
3 Years:18%
Last Year:44%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:53 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11111212131516161616
Reserves140147218218171167212225240241
Borrowings338362357417470470585668728770
Other Liabilities212267315290268380417439385448
Total Liabilities7017879029379221,0321,2301,3491,3691,475
Fixed Assets361365386386382415477490453448
CWIP7281616503118292736
Investments0001111122
Other Assets333394499535489586733829887989
Total Assets7017879029379221,0321,2301,3491,3691,475

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +318865456946-688120
Cash from Investing Activity +-74-77-78-60-103-80-124-106-110
Cash from Financing Activity +43-71426342113435-14
Net Cash Flow-041110-13517-4

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-259.00-273.00-230.00-300.00-423.00-439.00-510.00-484.00-581.00

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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days675764585578746555
Inventory Days757673718081766767
Days Payable11711812389971501159180
Cash Conversion Cycle25151439389354143
Working Capital Days242233362036525049
ROCE %9%13%10%-1%-4%-0%12%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters71.14%71.14%72.65%72.65%72.65%72.65%72.65%72.65%72.65%72.65%72.65%72.65%
FIIs0.00%0.00%0.03%0.04%0.03%0.00%0.12%0.00%0.01%0.00%0.01%0.01%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.11%0.50%0.63%0.47%0.00%
Public28.86%28.86%27.32%27.31%27.33%27.35%27.24%27.25%26.86%26.73%26.88%27.35%
No. of Shareholders14,85114,42518,44518,03616,68917,01015,83014,28714,59413,33113,43212,830

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Business Cycle Fund101,7951.068.46101,7952024-12-110%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.8518.466.97-47.66-37.95
Diluted EPS (Rs.)1.8518.466.97-47.66-36.49
Cash EPS (Rs.)57.8177.8256.343.4216.03
Book Value[Excl.RevalReserv]/Share (Rs.)157.32148.52140.22124.84146.51
Book Value[Incl.RevalReserv]/Share (Rs.)157.32148.52140.22124.84146.51
Revenue From Operations / Share (Rs.)1376.121447.111070.63869.861017.59
PBDIT / Share (Rs.)92.62123.1548.8425.8748.08
PBIT / Share (Rs.)36.6763.77-0.94-19.51-4.21
PBT / Share (Rs.)-63.0135.9315.69-38.07-35.48
Net Profit / Share (Rs.)1.8618.456.55-41.96-36.26
NP After MI And SOA / Share (Rs.)1.8618.456.55-41.96-36.26
PBDIT Margin (%)6.738.504.562.974.72
PBIT Margin (%)2.664.40-0.08-2.24-0.41
PBT Margin (%)-4.572.481.46-4.37-3.48
Net Profit Margin (%)0.131.270.61-4.82-3.56
NP After MI And SOA Margin (%)0.131.270.61-4.82-3.56
Return on Networth / Equity (%)1.1712.424.67-33.61-24.75
Return on Capital Employeed (%)10.7719.82-0.30-6.90-1.25
Return On Assets (%)0.222.220.86-5.92-4.93
Long Term Debt / Equity (X)1.021.011.031.041.09
Total Debt / Equity (X)2.742.722.521.992.16
Asset Turnover Ratio (%)1.651.831.401.231.23
Current Ratio (X)0.850.920.880.770.78
Quick Ratio (X)0.560.610.590.520.47
Inventory Turnover Ratio (X)5.746.446.005.044.48
Dividend Payout Ratio (NP) (%)0.000.000.000.00-11.84
Dividend Payout Ratio (CP) (%)0.000.000.000.0026.78
Earning Retention Ratio (%)0.000.000.000.00111.84
Cash Earning Retention Ratio (%)0.000.000.000.0073.22
Interest Coverage Ratio (X)2.675.964.051.391.62
Interest Coverage Ratio (Post Tax) (X)2.932.24-0.83-1.26-0.16
Enterprise Value (Cr.)1796.951291.491135.96898.14556.69
EV / Net Operating Revenue (X)0.800.540.650.700.43
EV / EBITDA (X)11.926.4514.2923.839.23
MarketCap / Net Operating Revenue (X)0.500.280.320.420.13
Retention Ratios (%)0.000.000.000.00111.84
Price / BV (X)4.382.742.512.990.97
Price / Net Operating Revenue (X)0.500.280.320.420.13
EarningsYield0.000.040.01-0.11-0.25

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 26,128.39

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.

As of December 22, 2024, is Undervalued by 2,832.48% compared to the current share price 891.00

Intrinsic Value of as of December 22, 2024 is: 54,399.19

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 6,005.41% compared to the current share price 891.00

Last 5 Year EPS CAGR: 108.20%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of 5.00%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 35.78, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 28.78, which may not be favorable.
    4. The company has higher borrowings (516.50) compared to reserves (197.90), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (98.44) and profit (-2.56).
    • 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 :
      1. Net Profit Margin: 0.13%
        • 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: 10.77% (Industry Average ROCE: 17.21%)
        • 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%: 1.17% (Industry Average ROE: 23.19%)
        • 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): 2.93
        • 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: 0.56
        • 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: 371 (Industry average Stock P/E: 112.83)
        • 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: 2.74
        • 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 - Qualitative Analysis

    Rane (Madras) Ltd. is a Public Limited Listed company incorporated on 31/03/2004 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65993TN2004PLC052856 and registration number is 052856. 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. 1555.00 Cr. and Equity Capital is Rs. 16.27 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Auto Ancl - Dr. Trans & Steer - OthersMAITHRI, Chennai (Madras) Tamil Nadu 600086investorservices@ranegroup.com
    http://www.ranegroup.com
    Management
    NamePosition Held
    Mr. Harish LakshmanChairman
    Ms. Vasudha SundararamanDirector
    Mr. Pradip Kumar BishnoiDirector
    Mr. L GaneshDirector
    Mr. N Ramesh RajanDirector
    Mr. Vikram HosangadyDirector

    FAQ

    What is the latest intrinsic value of ?

    The latest intrinsic value of as on 22 December 2024 is ₹26128.39, which is 2832.48% higher than the current market price of ₹891.00. The stock has a market capitalization of 1,450 Cr. and recorded a high/low of 1,529/624 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹241 Cr and total liabilities of ₹1,475 Cr.

    What is the Market Cap of ?

    The Market Cap of is 1,450 Cr..

    What is the current Stock Price of as on 22 December 2024?

    The current stock price of as on 22 December 2024 is 891.

    What is the High / Low of stocks in FY 2024-2025?

    In FY 2024-2025, the High / Low of stocks is 1,529/624.

    What is the Stock P/E of ?

    The Stock P/E of is 371.

    What is the Book Value of ?

    The Book Value of is 158.

    What is the Dividend Yield of ?

    The Dividend Yield of is 0.00 %.

    What is the ROCE of ?

    The ROCE of is 6.36 %.

    What is the ROE of ?

    The ROE of is 43.7 %.

    What is the Face Value of ?

    The Face Value of 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 . 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