Rane (Madras) Ltd Stock Analysis

BSE: 532661 | NSE: RML | Auto Ancillary | Small Cap

BSE Share Price May 18, 15:19
314.00 -0.90 (-0.29%)

DeciZen - Make an Informed Decision on Rane Madras

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Rane (Madras) Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Rane (Madras) Ltd is a average quality company.

2. Is Rane (Madras) Ltd undervalued or overvalued?

The key valuation ratios of Rane (Madras) Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Rane (Madras) Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rane (Madras) Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Rane Madras:

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.
Rane (Madras) Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 17.1%13.9%13.6%8%7.9%9.5%12.3%11.7%2.4%1.7%-
Value Creation Index 0.2-0.0-0.0-0.4-0.4-0.3-0.1-0.2-0.8-0.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6716407277798619891,2141,3701,1011,1471,481
YoY Gr. Rt. %--4.6%13.6%7.2%10.5%14.9%22.7%12.9%-19.7%4.2%-
Adj EPS 26.124.125.414.917.322.434.740.2-5.7-4.2-22.6
YoY Gr. Rt. %--8%5.7%-41.5%16.3%29.6%55%15.8%-114.2%NA-
BVPS (₹) 113.3128133.4138.4145162.7225.2260233.2204.7223.2
Adj Net Profit 26.624.526.715.618.223.640.348.2-7.2-6.2-37
Cash Flow from Ops. 28.170.445.267.136.989.573.370.5116107-
Debt/CF from Ops. 4.11.53.73.17.63.33.74.53.12.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.1%5.9%-1.9%4.2%
Adj EPS -181.7%-175.5%-149.6%NA
BVPS 6.87.1-3.1-12.2
Share Price 8.8% -7.3% -1.6% -17.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 24.92019.210.311.614.218.416.7-2.3-2-10.6
Op. Profit Mgn % 99.110.199.410.111.110.577.96.7
Net Profit Mgn % 43.83.722.12.43.33.5-0.7-0.5-2.5
Debt to Equity 10.81.11.41.71.7111.21-
Working Cap Days 1061181141221241061171341601490
Cash Conv. Cycle 383832312720324656350

Recent Performance Summary

Sales growth is good in last 4 quarters at 80.05%

Return on Equity is Poor

Sales growth has been subdued in last 3 years -1.87%

Debt to equity has increased versus last 3 years average to 1.03

Latest Financials - Rane (Madras) Ltd.

Standalone Consolidated
TTM EPS (₹) -22.6 -0.9
TTM Sales (₹ Cr.) 1,481 1,648
BVPS (₹.) 223.2 140.6
Reserves (₹ Cr.) 347 212
P/BV 1.41 2.23
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 286.30 / 489.65
All Time Low / High (₹) 24.90 / 1050.00
Market Cap (₹ Cr.) 512
Equity (₹ Cr.) 16.3
Face Value (₹) 10
Industry PE 32.9

Management X-Ray of Rane Madras :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Rane (Madras) Ltd

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

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