Why is Rane (Madras) Ltd ?
1
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)
2
Despite the size of the company, domestic mutual funds hold only 0.19% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
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 Auto Components & Equipments)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rane (Madras) for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rane (Madras)
7.74%
0.22
34.59%
Sensex
-2.38%
-0.19
12.70%
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
0
Institutional Holding
1.07%
ROCE (avg)
4.60%
ROE (avg)
17.53%
Valuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
33
Price to Book Value
2.95
EV to EBIT
15.61
EV to EBITDA
8.64
EV to Capital Employed
1.90
EV to Sales
0.75
PEG Ratio
4.38
Dividend Yield
1.10%
ROCE (Latest)
10.74%
ROE (Latest)
7.85%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Bullish
Technical Movement
28What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.18 times
PBT LESS OI(Q)
At Rs 39.66 cr has Grown at 82.3% (vs previous 4Q average
PAT(Q)
At Rs 31.14 cr has Grown at 133.3% (vs previous 4Q average
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%
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 quartersMOJO 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 CrMOJO 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 CrMOJO 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 quartersMOJO 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 quartersMOJO 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 quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 8.95%
in the last five quartersMOJO 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 quartersMOJO 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 quartersMOJO 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 periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents






