Rane (Madras) Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate RML's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RML's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As RML is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RML. This is calculated by dividing RML's market cap by their current revenue.
What is RML's PS Ratio?
PS Ratio	0.6x
Sales	₹20.90b
Market Cap	₹13.10b

RML 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/Revenue	1x
Enterprise Value/EBITDA	13x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does RML's PS Ratio compare to its peers?

The above table shows the PS ratio for RML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.5x
515043 Saint-Gobain Sekurit India	5.9x	n/a	₹11.8b
INDNIPPON India Nippon Electricals	2x	n/a	₹15.7b
520008 Rico Auto Industries	0.5x	n/a	₹11.6b
522073 Hi-Tech Gears	1.4x	n/a	₹14.6b
RML Rane (Madras)	0.6x	n/a	₹13.1b

Price-To-Sales vs Peers: RML is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

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

4 Companies	Price / Sales	Estimated Growth	Market Cap
BHARATGEAR Bharat Gears	0.2x	n/a	US$17.75m
505075 Setco Automotive	0.2x	n/a	US$16.60m
530621 Akar Auto Industries	0.3x	n/a	US$13.20m
523415 Coventry Coil-O-Matic (Haryana)	0.01x	n/a	US$88.40k

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: RML is good value based on its Price-To-Sales Ratio (0.6x) compared to the Indian Auto Components industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

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

RML PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	n/a

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

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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