NSEI:RAIN

Stock Analysis Report

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Executive Summary

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon products, cement, electricity, and specialty chemicals worldwide. More Details


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has Rain Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.3%

RAIN

3.7%

IN Chemicals

1.3%

IN Market


1 Year Return

-1.3%

RAIN

24.5%

IN Chemicals

4.3%

IN Market

Return vs Industry: RAIN underperformed the Indian Chemicals industry which returned 24.5% over the past year.

Return vs Market: RAIN underperformed the Indian Market which returned 4.3% over the past year.


Shareholder returns

RAINIndustryMarket
7 Day-7.3%3.7%1.3%
30 Day-16.7%3.2%1.4%
90 Day20.3%19.9%12.6%
1 Year-0.4%-1.3%27.3%24.5%6.3%4.3%
3 Year-38.0%-39.2%44.7%36.5%4.4%-0.5%
5 Year186.2%172.5%147.5%127.0%46.1%35.1%

Price Volatility Vs. Market

How volatile is Rain Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rain Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAIN (₹102.75) is trading below our estimate of fair value (₹426.65)

Significantly Below Fair Value: RAIN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAIN is good value based on its PE Ratio (10.4x) compared to the IN Chemicals industry average (15.6x).

PE vs Market: RAIN is good value based on its PE Ratio (10.4x) compared to the Indian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAIN is good value based on its PB Ratio (0.7x) compared to the IN Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Rain Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RAIN's forecast earnings growth is above the savings rate (7.2%).

Earnings vs Market: Insufficient data to determine if RAIN's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RAIN's revenue (16.7% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: RAIN's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rain Industries performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAIN has high quality earnings.

Growing Profit Margin: RAIN's current net profit margins (3%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: RAIN's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: RAIN's earnings growth over the past year (44%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: RAIN earnings growth over the past year (44%) exceeded the Chemicals industry -2.1%.


Return on Equity

High ROE: RAIN's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Rain Industries's financial position?


Financial Position Analysis

Short Term Liabilities: RAIN's short term assets (₹45.2B) exceed its short term liabilities (₹25.3B).

Long Term Liabilities: RAIN's short term assets (₹45.2B) do not cover its long term liabilities (₹97.9B).


Debt to Equity History and Analysis

Debt Level: RAIN's debt to equity ratio (160.4%) is considered high.

Reducing Debt: RAIN's debt to equity ratio has reduced from 241.5% to 160.4% over the past 5 years.

Debt Coverage: RAIN's debt is well covered by operating cash flow (26.8%).

Interest Coverage: RAIN's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Rain Industries's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAIN's dividend (0.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: RAIN's dividend (0.98%) is low compared to the top 25% of dividend payers in the Indian market (2.23%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.2%), RAIN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

N. Reddy (78 yo)

1.5yrs

Tenure

₹100,000

Compensation

Mr. N. Radhakrishna Reddy serves as the Managing Director of Rain Industries Limited since March 31, 2019. Mr. Reddy has experience in Construction and Cement Industry. He served as the Chairman of Rain In ...


Board Members

NamePositionTenureCompensationOwnership
N. Reddy
MD & Director1.5yrs₹100.00k3.09%
₹ 1.1b
Hira Zutshi
Independent Chairman1.5yrs₹1.51mno data
Jagan Reddy Nellore
Vice Chairman1.5yrs₹15.89m0.000030%
₹ 10.3k
Radhika Haribhakti
Independent Director5.83yrs₹1.39mno data
Sujith Reddy Nellore
Non-Executive Director28.5yrsno data2.98%
₹ 1.0b
Varun Batra
Independent Director2.58yrs₹1.51mno data
Nirmala Reddy
Independent Director4yrs₹1.57mno data
Brian McNamara
Independent Director1.58yrs₹1.27mno data

3.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RAIN's board of directors are considered experienced (3.3 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

Rain Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rain Industries Limited
  • Ticker: RAIN
  • Exchange: NSEI
  • Founded: 1974
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹34.459b
  • Shares outstanding: 336.35m
  • Website: https://www.rain-industries.com

Number of Employees


Location

  • Rain Industries Limited
  • Rain Center
  • 34, Srinagar Colony
  • Hyderabad
  • 500073
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500339BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994
RAINNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1994

Biography

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon products, cement, electricity, and specialty chemicals worldwide. The company operates through three segments: Carbon, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 19:25
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.