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Rain Industries Ltd. Stock Analysis

Small Cap
Evaluated by 2679 users | BSE: 500339 | NSE: RAIN |
Petrochemicals
Rain Commodities (RCL), incorporated in 1974 is engaged in the business of manufacturing cement, Calcined Petroleum Coke (CPC) and power. The company is the largest producer of CPC with a production capacity of 2.49 nillion tonnes per annum (MTPA). Under cement, company has created brand...

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.
Rain Industries Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Capital Employed 10.45%16.58%9.27%7.98%5.97%6.76%6.79%11.36%7.62%5.44%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,7655,6405,36111,74411,93710,2199,25811,30314,04912,361
Y-o-Y Gr. Rt.-49.8%-4.9%119.1%1.6%-14.4%-9.4%22.1%24.3%-12%
Adjusted EPS (Rs.) 8.8219.8813.2112.626.88.888.1724.6817.5811.23
Y-o-Y Gr. Rt.-125.4%-33.6%-4.5%-46.1%30.6%-8%202.1%-28.8%-36.1%
Book Value per Share (Rs.) 39.3460.6974.6895.8387.5887.3494.09117.26137.44147.46
Adjusted Net Profit 312695451424229299275830591378
Net Op. Cash Flow (Rs. Cr.) 3188411,4026091,2911,2381,5678681,7062,240
Debt to Cash Flow from Ops 104.464.9413.615.946.134.688.454.563.5
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.
Rain Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14.1%0.7%10.1%-12%
Adjusted EPS 2.7%10.6%11.2%-36.1%
Book Value per Share 15.81116.27.3
Share Price 14.4% 21% -23.5% 3.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Equity (%) 23.9839.5419.3314.77.4110.159.0123.3613.817.89
Operating Profit Margin (%) 19.5324.6120.6912.8110.1613.2216.5320.1114.1411.92
Net Profit Margin (%) 8.3512.338.553.631.762.723.037.594.563.63
Debt to Equity 2.281.772.712.572.62.592.311.861.681.58
Working Capital Days 11911712990114119113108113119
Cash Conversion Cycle 73706644575856586061
Entity Percentage Holding
Promoters 41.14%
Institutions 15.56%
Non-Institutions 43.30%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Rain Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Rain Industries Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Rain Industries Ltd.'s performance infers:

Rain Industries Ltd. earnings have grown by 10.6%, whereas share price has appreciated 21% 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 Rain Industries Ltd. share prices over the last 10 years. Here is what we found out:

Rain Industries Ltd. share price has appreciated 11.8% annually over the past ten years.

Rain Commodities (RCL), incorporated in 1974 is engaged in the business of manufacturing cement, Calcined Petroleum Coke (CPC) and power. The company is the largest producer of CPC with a production capacity of 2.49 nillion tonnes per annum (MTPA). Under cement, company has created brand namely Priya Cement. Presently the company markets its product mainly in South India in the states of Andhra Pradesh, Karnataka and Tamil Nadu.

The company was incorporated under the name Tadpatri

Rain Commodities (RCL), incorporated in 1974 is engaged in the business of manufacturing cement, Calcined Petroleum Coke (CPC) and power. The company is the largest producer of CPC with a production capacity of 2.49 nillion tonnes per annum (MTPA). Under cement, company has created brand namely Priya Cement. Presently the company markets its product mainly in South India in the states of Andhra Pradesh, Karnataka and Tamil Nadu.

The company was incorporated under the name Tadpatri Cements, which later was changed to present one on Dec. 27, 2004. Presently the total cement capacity of the company is 3.16 MTPA.

In 2007, Rain Calcining was merged with Rain Commodities. In the same year company’s wholly owned subsidiary Rain Commodities (USA) Inc, entered into an agreement to acquire the assets of the Toronto-based Great Lakes Carbon Income Fund.

The company owns subsidiaries namely Rain CII Carbon India or RCCIL (erstwhile known as Rain Industries), Rain Commodities (USA) Inc, Moonglow Company Business Inc and Rain CII Carbon LLC. All these subsidiaries are engaged are also engaged in manufacturing cement, CPC and power. RCCIL is 100% export-oriented unit located in Visakhapatnam, Andhra Pradesh and produces CPC, which has an installed capacity 480,000 TPA. This unit also operates a captive power plant of 49 MW.

The company operates two manufacturing facilities in Nalgonda and Kurnool in the state of Andhra Pradesh. The production capacity of these plants is 1 million tonnes capacity per annum and 2.16 million tonnes capacity per annum respectively.

New developments

Rain Commodities is planning to set up two greenfield CPC plants in Visakhapatnam, India. These greenfeild plants will have an aggregate capacity of 6,00,000 tonnes and will commence its operation by the end of 2009.

Rain CII Carbon LLC, a wholly owned subsidiary of RCL is planning to set up a petroleum coke calcining plant in China. The planned capacity for the new facility would be 0.3-0.5 million tonnes a year and is anticipated to be operational in 2010.

Rain CII Carbon India has entered into an agreement with International Finance Corp (IFC) of the World Bank to sell 850,000 carbon credits.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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