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5058

Rane Holdings BSE:505800 Stock Report

Last Price

₹694.75

Market Cap

₹9.9b

7D

2.6%

1Y

4.8%

Updated

10 Aug, 2022

Data

Company Financials
505800 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends4/6

505800 Stock Overview

Rane Holdings Limited, together with its subsidiaries, manufactures and markets automotive components for the transportation industry in India and internationally.

Rane Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rane Holdings
Historical stock prices
Current Share Price₹694.75
52 Week High₹725.00
52 Week Low₹552.00
Beta1.13
1 Month Change10.18%
3 Month Change20.59%
1 Year Change4.77%
3 Year Change-20.68%
5 Year Change-57.69%
Change since IPO3,453.71%

Recent News & Updates

Shareholder Returns

505800IN Auto ComponentsIN Market
7D2.6%-1.5%0.5%
1Y4.8%2.7%8.7%

Return vs Industry: 505800 matched the Indian Auto Components industry which returned 4.1% over the past year.

Return vs Market: 505800 underperformed the Indian Market which returned 8.8% over the past year.

Price Volatility

Is 505800's price volatile compared to industry and market?
505800 volatility
505800 Average Weekly Movement4.2%
Auto Components Industry Average Movement6.1%
Market Average Movement6.4%
10% most volatile stocks in IN Market9.1%
10% least volatile stocks in IN Market4.2%

Stable Share Price: 505800 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 505800's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192995Ganesh Lakshminarayanhttps://www.ranegroup.com

Rane Holdings Limited, together with its subsidiaries, manufactures and markets automotive components for the transportation industry in India and internationally. It offers steering and suspension systems comprising manual steering gears, steering linkages, suspension components, hydraulic products, power steering fluid- power cruises, intermediate shafts, and universal joint assemblies; hydraulic power rack and pinion steering gear, power steering gear, and power steering pump assemblies; and electric power steering, solid steering, energy absorbing and collapsible, and tilt and telescopic steering columns. The company also provides valve train components, including engine valves, and valve guides and mechanical tappets; friction material products, such as brake linings, disc pads, railways brake blocks, clutch facings, and commercial vehicle and sintered brake pads; and occupant safety systems, including seat belts and air bags.

Rane Holdings Fundamentals Summary

How do Rane Holdings's earnings and revenue compare to its market cap?
505800 fundamental statistics
Market Cap₹9.92b
Earnings (TTM)₹260.30m
Revenue (TTM)₹29.74b

38.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
505800 income statement (TTM)
Revenue₹29.74b
Cost of Revenue₹17.74b
Gross Profit₹12.00b
Other Expenses₹11.74b
Earnings₹260.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)18.23
Gross Margin40.35%
Net Profit Margin0.88%
Debt/Equity Ratio78.4%

How did 505800 perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

66%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 505800 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 505800?

Other financial metrics that can be useful for relative valuation.

505800 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA9.7x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 505800's PE Ratio compare to its peers?

505800 PE Ratio vs Peers
The above table shows the PE ratio for 505800 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.4x
INDNIPPON India Nippon Electricals
18.9xn/a₹9.5b
539636 Precision Camshafts
27xn/a₹12.4b
533477 Enkei Wheels (India)
54.4xn/a₹9.1b
530759 Sterling Tools
37.2xn/a₹9.5b
505800 Rane Holdings
38.1xn/a₹9.9b

Price-To-Earnings vs Peers: 505800 is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the peer average (34.4x).


Price to Earnings Ratio vs Industry

How does 505800's PE Ratio compare vs other companies in the IN Auto Components Industry?

Price-To-Earnings vs Industry: 505800 is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the Indian Auto Components industry average (23x)


Price to Earnings Ratio vs Fair Ratio

What is 505800's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

505800 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 505800's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 505800 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 505800 (₹694.75) is trading above our estimate of fair value (₹84.33)

Significantly Below Fair Value: 505800 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Rane Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.2%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rane Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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Past Performance

How has Rane Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-48.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 505800 has a large one-off gain of ₹288.6M impacting its June 30 2022 financial results.

Growing Profit Margin: 505800's current net profit margins (0.9%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: 505800's earnings have declined by 48.8% per year over the past 5 years.

Accelerating Growth: 505800's earnings growth over the past year (5.2%) exceeds its 5-year average (-48.8% per year).

Earnings vs Industry: 505800 earnings growth over the past year (5.2%) underperformed the Auto Components industry 19.5%.


Return on Equity

High ROE: 505800's Return on Equity (3.5%) is considered low.


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Financial Health

How is Rane Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 505800's short term assets (₹11.0B) exceed its short term liabilities (₹10.7B).

Long Term Liabilities: 505800's short term assets (₹11.0B) exceed its long term liabilities (₹4.0B).


Debt to Equity History and Analysis

Debt Level: 505800's net debt to equity ratio (74.5%) is considered high.

Reducing Debt: 505800's debt to equity ratio has increased from 53.2% to 78.4% over the past 5 years.

Debt Coverage: 505800's debt is not well covered by operating cash flow (1.9%).

Interest Coverage: 505800's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

What is Rane Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.73%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 505800's dividend (1.73%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 505800's dividend (1.73%) is in the top 25% of dividend payers in the Indian market (1.71%)


Stability and Growth of Payments

Stable Dividend: 505800's dividend payments have been volatile in the past 10 years.

Growing Dividend: 505800's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (65.8%), 505800's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 505800 is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Ganesh Lakshminarayan (68 yo)

3.25yrs

Tenure

₹29,838,505

Compensation

Mr. Ganesh Lakshminarayan, B.Com., ACA, MBA has been Additional Independent Director at Sundaram Finance Ltd. since August 12, 2020. Mr. Lakshminarayan serves as an Executive Chairman, Chief Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Ganesh's total compensation ($USD374.94K) is above average for companies of similar size in the Indian market ($USD37.71K).

Compensation vs Earnings: Ganesh's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 505800's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: 505800's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rane Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Rane Holdings Limited
  • Ticker: 505800
  • Exchange: BSE
  • Founded: 1929
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: ₹9.920b
  • Shares outstanding: 14.28m
  • Website: https://www.ranegroup.com

Number of Employees


Location

  • Rane Holdings Limited
  • Maithri
  • No.132, Cathedral Road
  • Chennai
  • Tamil Nadu
  • 600086
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.