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Rane (Madras) Ltd. Stock Analysis

Small Cap
Evaluated by 356 users | BSE: 532661 | NSE: RML |
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Rane (Madras) Ltd. started with the inception of manufacturing facilities in the year 1960.The company is the manufacturer of steering & suspension systems for every segment of automobile industry, viz Passenger cars, Multi utility vehicles, Light commercial vehicles, Heavy commercial...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 21.25%17.14%13.89%13.55%7.95%7.85%9.5%12.26%11.71%2.44%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5846716407277798619891,2141,3701,101
Y-o-Y Gr. Rt.-14.9%-4.6%13.6%7.2%10.5%14.9%22.7%12.9%-19.7%
Adjusted EPS (Rs.) 27.1526.1324.0525.4314.8717.2922.4134.7440.24-5.7
Y-o-Y Gr. Rt.--3.8%-8%5.7%-41.5%16.3%29.6%55%15.8%-114.2%
Book Value per Share (Rs.) 97.03113.25128.02133.42138.44145162.65225.18260.04233.15
Adjusted Net Profit 27.626.624.526.715.618.223.640.348.2-7.2
Net Op. Cash Flow (Rs. Cr.) 34.228.170.445.267.136.989.573.370.5116
Debt to Cash Flow from Ops 2.284.091.463.713.117.563.293.74.543.07
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Rane (Madras) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.3%7.2%3.6%-19.7%
Adjusted EPS -184.1%-182.6%-163.4%-114.2%
Book Value per Share 10.21112.8-10.3
Share Price 9.5% -8% -30% -6.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 30.4924.8619.9519.1910.3411.5614.2118.4416.68-2.34
Operating Profit Margin (%) 8.399.049.0710.078.979.4410.1211.0910.466.99
Net Profit Margin (%) 4.733.963.823.682.012.112.383.323.52-0.65
Debt to Equity 0.7910.791.131.361.741.721.041.031.22
Working Capital Days 100106118114122124106117134174
Cash Conversion Cycle 32383832312720324660
Entity Percentage Holding
Promoters 64.56%
Non-Institutions 35.44%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Rane (Madras) Ltd.'s performance infers:

Rane (Madras) Ltd. earnings have declined by -182.6%, whereas share price has depreciated -8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Rane (Madras) Ltd. share prices over the last 10 years. Here is what we found out:

Rane (Madras) Ltd. share price has depreciated 3.2% annually over the past ten years.

Rane (Madras) Ltd. started with the inception of manufacturing facilities in the year 1960.The company is the manufacturer of steering & suspension systems for every segment of automobile industry, viz Passenger cars, Multi utility vehicles, Light commercial vehicles, Heavy commercial vehicles and Farm tractors. Best in class manufacturing facilities.

It has got Strategic Technical partnerships with M/s TRW Inc, USA for Steering Gear  Products & TRW Ehrenreich GmbH & Co.,

Rane (Madras) Ltd. started with the inception of manufacturing facilities in the year 1960.The company is the manufacturer of steering & suspension systems for every segment of automobile industry, viz Passenger cars, Multi utility vehicles, Light commercial vehicles, Heavy commercial vehicles and Farm tractors. Best in class manufacturing facilities.

It has got Strategic Technical partnerships with M/s TRW Inc, USA for Steering Gear  Products & TRW Ehrenreich GmbH & Co., Germany for Steering Linkage Products Holds major market share in India both in Manual steering gear systems & suspension systems.

The production plants of the company at Chennai (2 plants), Mysore, Puducherry each address a specific industry segment. Independent manufacturing cells produce specialised high end components.

  • Chennai plant - Light Commercial vehicle, Heavy Commercial vehicle and Utility vehicles segments.
  • Mysore plant - Tractor and Commercial vehicle segments.
  • Puducherry plant - Passenger car segments.
  • Varanavasi (Chennai) plant - Exports market. 
  • Uttarakhand plant - Caters specifically to the customers in the North of India.

Product range of the company includes:

Manual Steering Gears  

  • Re - circulating ball type
  • Rack and Pinion 

Steering Linkages 

  • Tie rod assemblies  
  • Drag link assemblies  
  • Centre link assemblies  
  • Gear shift ball joints  

Suspension Linkages 

  • Lower control arms  
  • Lower & Upper
  • Suspension ball joints 
  • Inner & Outer ball joints   
  • Axle ball joints

Achievements/ recognition:

  • IS0/TS 16949:2002 certifications for each of its manufacturing locations
  • IS0 14001 certified plants
  • OHSAS 18001 certified
  • Deming Application Prize winner in the year 2007

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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