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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rane (Madras) Ltd

About the Company - Rane (Madras) Ltd

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, 132, Cathedral Road, Chennai (Madras) Tamil Nadu 600086investorservices@ranegroup.com
http://www.ranegroup.com
Management
NamePosition Held
Mr. Ganesh LakshminarayanChairman
Mr. Harish LakshmanVice Chairman
Mr. N Ramesh RajanDirector
Mr. Vikram HosangadyDirector
Mr. Pradip Kumar BishnoiDirector
Ms. Vasudha SundararamanDirector

Rane (Madras) Ltd. Share Price Update

Share PriceValue
Today₹832.25
Previous Day₹841.30

Basic Stock Data of Rane (Madras) Ltd

Market Cap 1,263 Cr.
Current Price 777
High / Low990/386
Stock P/E9.62
Book Value 157
Dividend Yield0.00 %
ROCE12.2 %
ROE14.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Rane (Madras) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rico Auto Industries Ltd 1,348 Cr. 99.6112/63.027.2 51.40.75 %9.50 %7.36 % 1.00
Automotive Axles Ltd 2,945 Cr. 1,9492,693/1,87517.0 5251.68 %30.8 %23.4 % 10.0
Industry Average2,146.50 Cr1,024.3022.10288.201.22%20.15%15.38%5.50

Rane (Madras) Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales427.23411.79340.29458.41437.79505.43549.27600.37583.24621.56588.34611.24521.05
Expenses395.88402.98335.77437.86425.64478.54520.12566.88540.38566.07545.95579.36474.05
Operating Profit31.358.814.5220.5512.1526.8929.1533.4942.8655.4942.3931.8847.00
OPM %7.34%2.14%1.33%4.48%2.78%5.32%5.31%5.58%7.35%8.93%7.21%5.22%9.02%
Other Income7.981.1034.8610.1812.214.821.090.2726.86-0.51-17.14-84.821.37
Interest6.684.063.695.675.784.505.006.529.3212.8014.4013.4614.64
Depreciation16.8617.9919.2620.0220.3921.3421.8821.9024.5528.2724.3223.9420.85
Profit before tax15.79-12.1416.435.04-1.815.873.365.3435.8513.91-13.47-90.3412.88
Tax %65.17%-21.25%7.30%54.76%-138.12%143.27%197.62%99.06%33.86%31.42%-7.42%119.67%29.43%
Net Profit5.49-14.7215.232.28-4.31-2.54-3.280.0523.719.54-14.4717.779.09
EPS in Rs4.37-10.1110.461.48-2.80-1.56-2.020.0314.585.87-8.9010.935.59

Rane (Madras) Ltd Quarterly Chart

Rane (Madras) Ltd Profit & Loss

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8761,1951,4001,5551,2771,2671,7422,3542,404
Expenses7971,1061,2731,4381,2301,2361,6672,1712,232
Operating Profit7989127117473175184173
OPM %9%7%9%8%4%2%4%8%7%
Other Income-211910127526-76
Interest193034353828213550
Depreciation4157616666668197101
Profit before tax17134026-45-552658-54
Tax %27%66%40%91%-2%-10%58%49%
Net Profit134242-46-61113037
EPS in Rs12.054.1120.872.02-36.26-41.986.5518.4622.48
Dividend Payout %37%146%58%420%0%0%0%0%

Rane (Madras) Ltd Profit & Loss Yearly Chart

Rane (Madras) Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:11%
3 Years:23%
TTM:5%
Compounded Profit Growth
10 Years:%
5 Years:8%
3 Years:41%
TTM:578%
Stock Price CAGR
10 Years:20%
5 Years:18%
3 Years:41%
1 Year:73%
Return on Equity
10 Years:%
5 Years:-9%
3 Years:-8%
Last Year:15%

Rane (Madras) Ltd Balance Sheet

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital111112121315161616
Reserves140147213218163157212225239
Preference Capital80000000
Borrowings330362357417470470585668663
Other Liabilities220267320290276390417439420
Total Liabilities7017879029379221,0321,2301,3491,339
Fixed Assets361365386386382415477490404
CWIP72816165031182917
Investments000111112
Other Assets333394499535489586733829916
Total Assets7017879029379221,0321,2301,3491,339

Rane (Madras) Ltd Reserves and Borrowings Chart

Rane (Madras) Ltd Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 318865456946-688
Cash from Investing Activity -74-77-78-60-103-80-124-106
Cash from Financing Activity 43-71426342113435
Net Cash Flow-041110-13517

Rane (Madras) Ltd Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6757645855787465
Inventory Days7576737180817667
Days Payable117118123899715011591
Cash Conversion Cycle251514393893541
Working Capital Days2422333620365250
ROCE %9%13%10%-1%-4%-0%12%

Rane (Madras) Ltd Financial Efficiency Indicators Chart

Rane (Madras) Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters69.45%69.45%71.14%71.14%72.65%72.65%72.65%72.65%72.65%72.65%72.65%72.65%
FIIs0.00%0.00%0.00%0.00%0.03%0.04%0.03%0.00%0.12%0.00%0.01%0.00%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.11%0.50%0.63%
Public30.55%30.55%28.86%28.86%27.32%27.31%27.33%27.35%27.24%27.25%26.86%26.73%
No. of Shareholders13,74614,00614,85114,42518,44518,03616,68917,01015,83014,28714,59413,331

Rane (Madras) Ltd Shareholding Pattern Chart

No. of Rane (Madras) Ltd Shareholders

Rane (Madras) Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Business Cycle Fund1017951.068.46

Rane (Madras) Ltd ROCE Trend

Rane (Madras) Ltd EPS Trend

Rane (Madras) Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.466.97-47.66-37.952.07
Diluted EPS (Rs.)18.466.97-47.66-36.492.07
Cash EPS (Rs.)77.8256.343.4216.0357.12
Book Value[Excl.RevalReserv]/Share (Rs.)148.52140.22124.84146.51192.32
Book Value[Incl.RevalReserv]/Share (Rs.)148.52140.22124.84146.51192.32
Revenue From Operations / Share (Rs.)1447.111070.63869.861017.591298.76
PBDIT / Share (Rs.)123.1548.8425.8748.08105.15
PBIT / Share (Rs.)63.77-0.94-19.51-4.2150.05
PBT / Share (Rs.)35.9315.69-38.07-35.4821.41
Net Profit / Share (Rs.)18.456.55-41.96-36.262.02
NP After MI And SOA / Share (Rs.)18.456.55-41.96-36.262.02
PBDIT Margin (%)8.504.562.974.728.09
PBIT Margin (%)4.40-0.08-2.24-0.413.85
PBT Margin (%)2.481.46-4.37-3.481.64
Net Profit Margin (%)1.270.61-4.82-3.560.15
NP After MI And SOA Margin (%)1.270.61-4.82-3.560.15
Return on Networth / Equity (%)12.424.67-33.61-24.751.05
Return on Capital Employeed (%)19.82-0.30-6.90-1.2515.41
Return On Assets (%)2.220.86-5.92-4.930.26
Long Term Debt / Equity (X)1.011.031.041.090.61
Total Debt / Equity (X)2.722.521.992.161.58
Asset Turnover Ratio (%)1.761.401.231.231.52
Current Ratio (X)0.920.880.770.780.87
Quick Ratio (X)0.610.590.520.470.55
Inventory Turnover Ratio (X)6.276.005.044.485.63
Dividend Payout Ratio (NP) (%)0.000.000.00-11.84557.43
Dividend Payout Ratio (CP) (%)0.000.000.0026.7819.73
Earning Retention Ratio (%)0.000.000.00111.84-457.43
Cash Earning Retention Ratio (%)0.000.000.0073.2280.27
Interest Coverage Ratio (X)5.964.051.391.623.67
Interest Coverage Ratio (Post Tax) (X)2.24-0.83-1.26-0.161.07
Enterprise Value (Cr.)1291.491135.96898.14556.69776.49
EV / Net Operating Revenue (X)0.540.650.700.430.49
EV / EBITDA (X)6.4514.2923.839.236.17
MarketCap / Net Operating Revenue (X)0.280.320.420.130.27
Retention Ratios (%)0.000.000.00111.84-457.43
Price / BV (X)2.742.512.990.971.87
Price / Net Operating Revenue (X)0.280.320.420.130.27
EarningsYield0.040.01-0.11-0.250.01

Rane (Madras) Ltd Profitability Ratios (%)

Rane (Madras) Ltd Liquidity Ratios

Rane (Madras) Ltd Liquidity Ratios (%)

Rane (Madras) Ltd Interest Coverage Ratios (X)

Rane (Madras) Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rane (Madras) Ltd

Fair Value: ₹228.00

The stock is overvalued by 70.66% compared to the current price ₹777

*Investments are subject to market risks

Strength and Weakness of Rane (Madras) Ltd

StrengthWeakness
  1. The company has higher reserves (190.44 cr) compared to borrowings (0.89 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (98.44 cr) and profit (2.89 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 17.83 and average Dividend Yield of 1.10%.
  2. The stock has a low average ROCE of 4.88%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 34.13, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 27.00, which may not be favorable.

Should I Buy Rane (Madras) Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rane (Madras) Ltd:
    1. Net Profit Margin: 1.27%
      • 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: 19.82% (Industry Average ROCE: 20.15%)
      • 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): 2.24
      • 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: 0.61
      • 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: 9.62 (Industry average Stock P/E: 21.1)
      • 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: 2.72
      • 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 (Madras) 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