New Risk • May 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.6% average weekly change). Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (₹2.30b market cap, or US$27.2m). Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹327, the stock trades at a trailing P/E ratio of 59.7x. Average trailing P/E is 27x in the Auto Components industry in India. Total returns to shareholders of 28% over the past three years. Reported Earnings • Jan 30
Third quarter 2025 earnings released: ₹12.25 loss per share (vs ₹4.84 profit in 3Q 2024) Third quarter 2025 results: ₹12.25 loss per share (down from ₹4.84 profit in 3Q 2024). Revenue: ₹1.32b (down 3.6% from 3Q 2024). Net loss: ₹88.6m (down 353% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Dec 31
Rane Engine Valve Limited to Report Q3, 2025 Results on Jan 29, 2025 Rane Engine Valve Limited announced that they will report Q3, 2025 results at 9:15 AM, Indian Standard Time on Jan 29, 2025 Reported Earnings • Oct 24
Second quarter 2025 earnings released: EPS: ₹7.92 (vs ₹2.04 in 2Q 2024) Second quarter 2025 results: EPS: ₹7.92 (up from ₹2.04 in 2Q 2024). Revenue: ₹1.47b (up 3.4% from 2Q 2024). Net income: ₹57.3m (up 287% from 2Q 2024). Profit margin: 3.9% (up from 1.0% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Sep 30
Rane Engine Valve Limited to Report Q2, 2025 Results on Oct 23, 2024 Rane Engine Valve Limited announced that they will report Q2, 2025 results on Oct 23, 2024 Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₹522, the stock trades at a trailing P/E ratio of 31.1x. Average trailing P/E is 34x in the Auto Components industry in India. Total returns to shareholders of 79% over the past three years. New Risk • Aug 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.7x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.6% average weekly change). Market cap is less than US$100m (₹3.75b market cap, or US$44.7m). Buy Or Sell Opportunity • Aug 19
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to ₹442. The fair value is estimated to be ₹361, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 74%. Upcoming Dividend • Jul 09
Upcoming dividend of ₹5.00 per share Eligible shareholders must have bought the stock before 16 July 2024. Payment date: 01 August 2024. Trailing yield: 1.2%. Within top quartile of Indian dividend payers (1.1%). Higher than average of industry peers (0.5%). Announcement • Jun 29
Rane Engine Valve Limited to Report Q1, 2025 Results on Jul 23, 2024 Rane Engine Valve Limited announced that they will report Q1, 2025 results at 12:15 PM, Indian Standard Time on Jul 23, 2024 Reported Earnings • Jun 29
Full year 2024 earnings released: EPS: ₹15.93 (vs ₹0.089 loss in FY 2023) Full year 2024 results: EPS: ₹15.93 (up from ₹0.089 loss in FY 2023). Revenue: ₹5.67b (up 14% from FY 2023). Net income: ₹114.6m (up ₹115.2m from FY 2023). Profit margin: 2.0% (up from 0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₹408, the stock trades at a trailing P/E ratio of 25.6x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 28% over the past three years. New Risk • May 19
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.7x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.7x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Market cap is less than US$100m (₹2.70b market cap, or US$32.4m). Announcement • May 09
Rane Engine Valve Limited, Annual General Meeting, Jul 23, 2024 Rane Engine Valve Limited, Annual General Meeting, Jul 23, 2024, at 14:00 Indian Standard Time. Announcement • May 08
Rane Engine Valve Limited Recommends a Dividend for the Financial Year 2023-24, Payable on August 01, 2024 Rane Engine Valve Limited recommended a dividend of INR 5/- per equity share on 7,234,455 equity shares of INR 10/- each fully paid up, for the financial year 2023-24, subject to approval of members at the upcoming AGM of the Company. The dividend, if declared by the shareholders will be paid/dispatched on August 01, 2024 to the eligible shareholders. Reported Earnings • May 08
Full year 2024 earnings released: EPS: ₹15.93 (vs ₹0.089 loss in FY 2023) Full year 2024 results: EPS: ₹15.93 (up from ₹0.089 loss in FY 2023). Revenue: ₹5.70b (up 15% from FY 2023). Net income: ₹114.6m (up ₹115.2m from FY 2023). Profit margin: 2.0% (up from 0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹383, the stock trades at a trailing P/E ratio of 23.7x. Average trailing P/E is 30x in the Auto Components industry in India. Total returns to shareholders of 41% over the past three years. Buy Or Sell Opportunity • Apr 19
Now 21% overvalued Over the last 90 days, the stock has fallen 18% to ₹365. The fair value is estimated to be ₹302, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Meanwhile, the company has become profitable. Announcement • Mar 30
Rane Engine Valve Limited to Report Q4, 2024 Results on May 07, 2024 Rane Engine Valve Limited announced that they will report Q4, 2024 results on May 07, 2024 Announcement • Mar 21
Rane Engine Valve Limited Announces Board Changes Rane Engine Valve Limited announced at the meeting of the board of directors of the company held on March 19, 2024, Mr. L Ganesh informed that he is retiring as chairman of the board, effective from close of business hours on March 31, 2024 and he will continue to serve on the Board, as a Non-Executive Director. The board of directors considered the decision of Mr. L Ganesh and accepted his retirement as Chairman. Thereafter the board, appointed Mr. Harish Lakshman as Chairman of the board, effective from April 1, 2024. Further, with effect from April 01,2024, Corporate Social Responsibility (CSR) Committee has been re-constituted by the Board of Directors, with Mr. Harish Lakshman as Chairman and Mr. L Ganesh as a Member. Mr. L Ganesh is a member of the Institute of Chartered Accountants of India (ICAI) and has MBA from Pennsylvania State University. He is the Chairman of the Rane Group of Companies. He has over 45 years of industrial experience. As Chairman, he played significant role in expanding the customer base, enhancing the global presence, driving the operational efficiencies and strengthening the leadership position in the industry. He pioneered the TQM movement and three of its businesses won the coveted Deming Grand Prize under his leadership. He was conferred with the prestigious Deming Award in recognition of his outstanding contribution to the dissemination and promotion (overseas) of TQM in 2022. Mr. L Ganesh is not related to any other Director on the Board. Mr. Harish Lakshman holds Bachelor's degree in Mechanical Engineering from BITS, Pilani, and Master's degree in Business from Krannert School of Management at Purdue University, USA. He joined the Rane Group in 1998 and held different positions in the areas of Marketing, Operations and Export Business Development. Prior to joining Rane Group, he worked with TRW Automotive Inc. in the US for 2 years. He has been instrumental in expanding group's product portfolio and establishing international presence. He is currently spearheading the Group's initiative to achieve accelerated profitable growth. He played a key role as President of Automotive Component Manufacturers Association of India (ACMA) for the period 2013-14. He was identified and recognized by Economic Times as one among the top 40 under forty India's Business Leaders in 2014. Mr. Harish Lakshman is not related to any other Director on the Board. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₹372, the stock trades at a trailing P/E ratio of 23.2x. Average trailing P/E is 30x in the Auto Components industry in India. Total returns to shareholders of 40% over the past three years. Reported Earnings • Feb 01
Third quarter 2024 earnings released: EPS: ₹4.84 (vs ₹2.63 loss in 3Q 2023) Third quarter 2024 results: EPS: ₹4.84 (up from ₹2.63 loss in 3Q 2023). Revenue: ₹1.37b (up 10% from 3Q 2023). Net income: ₹35.0m (up ₹52.7m from 3Q 2023). Profit margin: 2.6% (up from net loss in 3Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Jan 31
Rane Engine Valve Limited Announces Company Secretary Changes Rane Engine Valve Limited inform that based on the recommendations of the Nomination & Remuneration Committee, approval of the Board, Mr. S Anand (M.no. 60122) has been as appointed as Company Secretary (CS) of the Company effective February 01, 2024 in the place of Mr. Vivekanandaa M, who ceases to be Company Secretary, effective closure of business hours on January 31, 2024, to pursue his professional aspirations elsewhere. Anand S, has an overall work experience of around 12 years in Secretarial domain with post qualification experience of over 4 years. New Risk • Jan 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.6x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (7.7% increase in shares outstanding). Market cap is less than US$100m (₹3.48b market cap, or US$41.9m). Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₹438, the stock trades at a trailing P/E ratio of 50.2x. Average trailing P/E is 31x in the Auto Components industry in India. Total returns to shareholders of 67% over the past three years. Announcement • Dec 30
Rane Engine Valve Limited to Report Q3, 2024 Results on Jan 31, 2024 Rane Engine Valve Limited announced that they will report Q3, 2024 results on Jan 31, 2024 Announcement • Dec 07
Rane Engine Valve Limited Approves Appointment of Vikram Hosangady as Non-Executive and Non-Independent Director Rane Engine Valve Limited announced that it may be recalled that the Board of Directors of the Company at their Meeting held on October 31, 2023 had appointed Mr. Vikram Hosangady as an Additional Director in the category of Non-Executive and Non-Independent Director, subject to approval of shareholders of the Company. The shareholders have vide postal ballot on December 07, 2023 approved by passing ordinary resolution the appointment of Mr. Vikram Hosangady, as Non-Executive and Non-Independent Director. Mr. Vikram Hosangady is a seasoned business leader and a finance professional with over 26 years of experience as a strategic partner to global Private Equity and Corporations in their value creation journey. He presently serves on the Board of MRF Limited as an Independent Director and Non-Executive and Non-Independent Director on the Board of Rane (Madras) Limited and Chemplast Sanmar Limited. Date of appointment is October 31, 2023. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹341, the stock trades at a trailing P/E ratio of 39x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 63% over the past three years. Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: ₹2.04 (vs ₹0.06 loss in 2Q 2023) Second quarter 2024 results: EPS: ₹2.04 (up from ₹0.06 loss in 2Q 2023). Revenue: ₹1.44b (up 17% from 2Q 2023). Net income: ₹14.8m (up ₹15.2m from 2Q 2023). Profit margin: 1.0% (up from 0% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Nov 01
Rane Engine Valve Limited Announces Retirement of Anil Kumar Venkat Epur as Non Executive - Independent Director Rane Engine Valve Limited approved the retirement of Mr. Anil Kumar Venkat Epur (DIN: 00202454), Non Executive - Independent Director, in accordance with policy of the Company effective closure of business hours on October 31, 2023. List of Directorship & Committee Membership -- Anil Kumar Venkat Epur: Member -- Audit Committee; Member -- Stakeholders Relationship Committee; Chairman -- Nomination and Remuneration Committee. Announcement • Sep 30
Rane Engine Valve Limited to Report Q2, 2023 Results on Oct 31, 2023 Rane Engine Valve Limited announced that they will report Q2, 2023 results on Oct 31, 2023 New Risk • Jul 27
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Share price has been highly volatile over the past 3 months (9.4% average weekly change). Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (7.7% increase in shares outstanding). Market cap is less than US$100m (₹2.36b market cap, or US$28.7m). Reported Earnings • Jul 27
First quarter 2024 earnings released: EPS: ₹2.47 (vs ₹4.63 loss in 1Q 2023) First quarter 2024 results: EPS: ₹2.47 (up from ₹4.63 loss in 1Q 2023). Revenue: ₹1.38b (up 20% from 1Q 2023). Net income: ₹17.4m (up ₹48.5m from 1Q 2023). Profit margin: 1.3% (up from net loss in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Jul 24
Rane Engine Valve Limited Announces Cessation of Dr. Brinda Jagirdar as Non-Executive - Independent Director Rane Engine Valve Limited informed that Dr. Brinda Jagirdar, Non-Executive - Independent Director, has ceased as Director of the Board, upon completion of her second term as Independent Director of the company with effect from closure of business hours on July 22, 2023. The Board at its meeting held on May 04, 2023 acknowledged Dr. Brinda Jagirdar's significant contributions to discussions and decisions on various strategic and governance matters during her tenure as an Independent Director. Announcement • Jun 30
Rane Engine Valve Limited to Report Q1, 2024 Results on Jul 25, 2023 Rane Engine Valve Limited announced that they will report Q1, 2024 results on Jul 25, 2023 Reported Earnings • May 06
Full year 2023 earnings released: ₹0.09 loss per share (vs ₹17.65 loss in FY 2022) Full year 2023 results: ₹0.09 loss per share (improved from ₹17.65 loss in FY 2022). Revenue: ₹5.00b (up 31% from FY 2022). Net loss: ₹600.0k (loss narrowed 100% from FY 2022). Profit margin: 0% (up from net loss in FY 2022). Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 09
Third quarter 2023 earnings released: ₹2.63 loss per share (vs ₹4.42 loss in 3Q 2022) Third quarter 2023 results: ₹2.63 loss per share (improved from ₹4.42 loss in 3Q 2022). Revenue: ₹1.24b (up 26% from 3Q 2022). Net loss: ₹17.7m (loss narrowed 40% from 3Q 2022). Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Dec 31
Rane Engine Valve Limited to Report Q3, 2023 Results on Feb 07, 2023 Rane Engine Valve Limited announced that they will report Q3, 2023 results on Feb 07, 2023 Reported Earnings • Oct 19
Second quarter 2023 earnings released: ₹0.06 loss per share (vs ₹4.61 loss in 2Q 2022) Second quarter 2023 results: ₹0.06 loss per share (improved from ₹4.61 loss in 2Q 2022). Net loss: ₹400.0k (loss narrowed 99% from 2Q 2022). Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 21
First quarter 2023 earnings released: ₹4.63 loss per share (vs ₹8.61 loss in 1Q 2022) First quarter 2023 results: ₹4.63 loss per share (up from ₹8.61 loss in 1Q 2022). Revenue: ₹1.15b (up 53% from 1Q 2022). Net loss: ₹31.1m (loss narrowed 46% from 1Q 2022). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 05
Full year 2022 earnings released: ₹17.65 loss per share (vs ₹9.06 loss in FY 2021) Full year 2022 results: ₹17.65 loss per share (down from ₹9.06 loss in FY 2021). Revenue: ₹3.82b (up 27% from FY 2021). Net loss: ₹118.6m (loss widened 95% from FY 2021). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Reported Earnings • Jan 26
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: ₹4.42 loss per share (down from ₹21.08 profit in 3Q 2021). Revenue: ₹990.8m (up 8.2% from 3Q 2021). Net loss: ₹29.7m (down 121% from profit in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 22
Second quarter 2022 earnings released: ₹4.61 loss per share (vs ₹5.15 loss in 2Q 2021) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2022 results: Revenue: ₹1.00b (up 22% from 2Q 2021). Net loss: ₹30.9m (loss narrowed 11% from 2Q 2021). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 02
Full year 2021 earnings released: ₹9.06 loss per share (vs ₹24.32 loss in FY 2020) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2021 results: Revenue: ₹3.02b (down 15% from FY 2020). Net loss: ₹60.9m (loss narrowed 63% from FY 2020). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Executive Departure • Jun 02
Non-Executive Director has left the company On the 27th of May, Lakshman Lakshminarayan's tenure as Non-Executive Director ended after 23.9 years in the role. As of March 2021, Lakshman personally held only 100.00 shares (₹26k worth at the time). A total of 3 executives have left over the last 12 months. Reported Earnings • May 22
Full year 2021 earnings released: ₹9.06 loss per share (vs ₹24.32 loss in FY 2020) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2021 results: Revenue: ₹3.05b (down 14% from FY 2020). Net loss: ₹60.9m (loss narrowed 63% from FY 2020). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Mar 05
New 90-day high: ₹331 The company is up 49% from its price of ₹222 on 04 December 2020. The Indian market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 23% over the same period. Reported Earnings • Feb 01
Third quarter 2021 earnings released: EPS ₹21.08 (vs ₹7.46 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ₹915.8m (up 12% from 3Q 2020). Net income: ₹141.6m (up ₹191.8m from 3Q 2020). Profit margin: 16% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Dec 07
New 90-day high: ₹227 The company is up 14% from its price of ₹200 on 08 September 2020. The Indian market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 21% over the same period. Reported Earnings • Oct 26
First half earnings released Over the last 12 months the company has reported total losses of ₹281.8m, with losses widening by 116% from the prior year. Total revenue was ₹2.72b over the last 12 months, down 33% from the prior year. Is New 90 Day High Low • Oct 10
New 90-day low: ₹186 The company is down 10.0% from its price of ₹206 on 10 July 2020. The Indian market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 9.0% over the same period.