ScoreWhy is Rain Industries Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.17%
- Poor long term growth as Operating profit has grown by an annual rate 6.54% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.31 times
2
The company has declared Positive results for the last 3 consecutive quarters
- PAT(Q) At Rs 13.51 cr has Grown at 140.8% (vs previous 4Q average)
- ROCE(HY) Highest at 7.85%
3
With ROCE of 7.7, it has a Very Attractive valuation with a 0.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 4.74%, its profits have risen by 107.5% ; the PEG ratio of the company is 1
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.61% over the previous quarter and collectively hold 13.76% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Rain Industries should be less than 10%
- Overall Portfolio exposure to Petrochemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Petrochemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rain Industries for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Rain Industries
4.57%
0.12
39.74%
Sensex
7.23%
0.73
11.73%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.12%
EBIT Growth (5y)
6.54%
EBIT to Interest (avg)
2.10
Debt to EBITDA (avg)
6.18
Net Debt to Equity (avg)
1.11
Sales to Capital Employed (avg)
1.03
Tax Ratio
68.73%
Dividend Payout Ratio
-5.96%
Pledged Shares
0
Institutional Holding
13.76%
ROCE (avg)
8.13%
ROE (avg)
5.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
105
Industry P/E
51
Price to Book Value
0.60
EV to EBIT
10.51
EV to EBITDA
5.98
EV to Capital Employed
0.81
EV to Sales
0.75
PEG Ratio
0.98
Dividend Yield
0.75%
ROCE (Latest)
7.72%
ROE (Latest)
0.57%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
PAT(Q)
At Rs 13.51 cr has Grown at 140.8% (vs previous 4Q average
ROCE(HY)
Highest at 7.85%
-4What is not working for the Company
PBT LESS OI(Q)
At Rs 15.05 cr has Fallen at -63.5% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 77.05 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Rain Industries
Profit After Tax (PAT) - Quarterly
At Rs 13.51 cr has Grown at 140.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -33.10 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Here's what is not working for Rain Industries
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 15.05 cr has Fallen at -63.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 41.22 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 77.05 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 50.54 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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