Rain Industries Ltd (RAIN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pasupati Acrylon

T N Petro Prod.

Supreme Petroch.

DCW

Manali Petrochem

Kothari Petroche

Rain Industries

Agarwal Indl.

Indian Acrylics

Petro Carbon

Neptune Pet.

Why is Rain Industries Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.53%

Poor long term growth as Net Sales has grown by an annual rate of 8.90% and Operating profit at 3.88% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.71 times

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.64% over the previous quarter and collectively hold 15.37% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.09% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Petrochemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rain Industries for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rain Industries

-36.75%

-1.03

33.25%

Sensex

4.25%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.90%

EBIT Growth (5y)

3.88%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

6.21

Net Debt to Equity (avg)

1.16

Sales to Capital Employed (avg)

1.01

Tax Ratio

100.00%

Dividend Payout Ratio

-5.96%

Pledged Shares

Institutional Holding

15.37%

ROCE (avg)

8.16%

ROE (avg)

7.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.51

EV to EBIT

10.84

EV to EBITDA

5.89

EV to Capital Employed

0.77

EV to Sales

0.72

PEG Ratio

Dividend Yield

0.95%

ROCE (Latest)

4.71%

ROE (Latest)

-5.94%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

PBT LESS OI(Q)

At Rs 156.31 cr has Grown at 415.8% (vs previous 4Q average

PAT(Q)

Highest at Rs 106.01 cr.

NET SALES(Q)

Highest at Rs 4,475.71 cr

EPS(Q)

Highest at Rs 3.15

-4What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 1.39 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.67 times

Loading Valuation Snapshot...

Here's what is working for Rain Industries

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 156.31 cr has Grown at 415.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -49.50 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 106.01 cr has Grown at 201.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -104.38 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 106.01 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 4,475.71 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.15

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Rain Industries

Debt-Equity Ratio - Half Yearly

Highest at 1.39 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 7.67 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio