Rane (Madras) Ltd (RML) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

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

Wheels India

GNA Axles

Rico Auto Inds

Uniparts India

Rajratan Global

MM Forgings

NRB Bearings

Rane (Madras)

Federal-Mogul Go

Divgi Torq

NDR Auto Compon.

Why is Rane (Madras) Ltd ?

High Debt Company with a Debt to Equity ratio (avg) at 2.27 times

High Debt Company with a Debt to Equity ratio (avg) at 2.27 times
The company has been able to generate a Return on Capital Employed (avg) of 6.85% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Net Sales has grown by an annual rate of 26.63% and Operating profit at 40.68%

With a growth in Net Profit of 42.15%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 4 consecutive quarters
OPERATING PROFIT TO INTEREST(Q) Highest at 6.18 times
PAT(Q) Highest at Rs 31.14 cr.
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 43.43 cr

With ROCE of 10.7, it has a Attractive valuation with a 2.1 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 17.78%, its profits have risen by 79.2% ; the PEG ratio of the company is 5.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rane (Madras) should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rane (Madras) for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rane (Madras)

17.78%

0.50

35.87%

Sensex

7.07%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.63%

EBIT Growth (5y)

40.68%

EBIT to Interest (avg)

1.24

Debt to EBITDA (avg)

6.20

Net Debt to Equity (avg)

1.16

Sales to Capital Employed (avg)

2.36

Tax Ratio

32.52%

Dividend Payout Ratio

34.57%

Pledged Shares

Institutional Holding

1.07%

ROCE (avg)

4.60%

ROE (avg)

17.53%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.39

EV to EBIT

17.31

EV to EBITDA

9.58

EV to Capital Employed

2.11

EV to Sales

0.83

PEG Ratio

5.05

Dividend Yield

0.96%

ROCE (Latest)

10.74%

ROE (Latest)

7.85%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Bullish

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

28What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 6.18 times

PAT(Q)

Highest at Rs 31.14 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 43.43 cr

NET SALES(Q)

Highest at Rs 1,015.15 cr

PBDIT(Q)

Highest at Rs 90.81 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 8.95%

PBT LESS OI(Q)

Highest at Rs 39.66 cr.

EPS(Q)

Highest at Rs 11.04

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Rane (Madras)

Operating Profit to Interest - Quarterly

Highest at 6.18 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 39.66 cr has Grown at 82.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 21.76 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 31.14 cr has Grown at 133.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 13.35 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 31.14 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 1,015.15 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 90.81 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 8.95%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 39.66 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 11.04

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 43.43 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents