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INVESTMENT INSIGHTS

Check Before You Invest : Rane (Madras) Ltd

BSE: 532661 NSE: RML ISIN: INE050H01012
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Rane (Madras) Ltd belong to?
Rane (Madras) Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Rane (Madras) Ltd a good quality company?
Rane (Madras) Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Rane (Madras) Ltd undervalued or overvalued?
Rane (Madras) Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Rane (Madras) Ltd a good buy now?
Rane (Madras) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rane (Madras) Ltd?
Rane (Madras) Ltd revenue growth is 59% for FY-2025 , which is above its 5 year CAGR of 25.4% , indicating faster growth.
Q.2 Gross Profit margin of Rane (Madras) Ltd?
Rane (Madras) Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.7% for FY-2025 , which is in line with its 5 year median of 6.7% , indicating stable margins.
Q.3 Operating Profit Margin of Rane (Madras) Ltd?
Rane (Madras) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.99% for FY-2025 , which is in line with its 5 year median of 8.99% indicating stable margins.
Q.4 Net Profit Margin of Rane (Madras) Ltd?
Rane (Madras) Ltd Net Profit Margin is 1.46% for FY-2025 , is above with its 5 year median of 0.69%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 6.7 6.7
Operating Profit Margin 8.99 8.99
Net Profit Margin 1.46 0.69
Q.5 Return on Asset of Rane (Madras) Ltd?
Rane (Madras) Ltd Return on Asset is 2.91%, which is above its 5 year historical median of 1.21%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rane (Madras) Ltd?
Rane (Madras) Ltd Return on equity is 10.57% for FY-2025 , which is above its historical median of 5.85%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rane (Madras) Ltd?
Rane (Madras) Ltd Return on capital employed is 13.53% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Rane (Madras) Ltd?
Rane (Madras) Ltd Cash conversion cycle is 45 days, above its historical median of 37 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.04 1.77
ROE 10.57 5.85
ROCE 13.53 -3.31
Cash Conversion Cycle 45 days 37 days
Q.9 Debt to Equity ratio of Rane (Madras) Ltd?
Rane (Madras) Ltd Debt-to-Equity ratio is 1.12 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Rane (Madras) Ltd?
Rane (Madras) Ltd Debt to cash flow from operations is 2.24 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rane (Madras) Ltd?
Promoters hold 70.45% of the Rane (Madras) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rane (Madras) Ltd vs industry peers?
Rane (Madras) Ltd revenue CAGR is 25.35% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,405.9 492.3
Gross Profit 228.2 44.4
Operating Profit 294 47
Net Profit 50 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.04 1.23
ROE 10.57 11.57
ROCE 13.53 13.36
Cash Conversion Cycle (days) 45.42 47

Valuation & price assessment

Q.1 Stock return of Rane (Madras) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.3% 18% 20.8% 5.7%
Q.3 Valuation ratios of Rane (Madras) Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 25.32 0.00 39.31
Price to Book 2.86 1.00 2.88
Price to Sales 0.56 0.31 1.29
EV to EBITDA 8.38 10.12 11.85

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