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Rain Industries

NSEI:RAIN
Snowflake Description

Very undervalued with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAIN
NSEI
₹47B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon and chemical products worldwide. The last earnings update was 31 days ago. More info.


Add to Portfolio Compare Print
  • Rain Industries has significant price volatility in the past 3 months.
RAIN Share Price and Events
7 Day Returns
10.7%
NSEI:RAIN
1.5%
IN Chemicals
1.8%
IN Market
1 Year Returns
-62.4%
NSEI:RAIN
-2.4%
IN Chemicals
-5.4%
IN Market
RAIN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rain Industries (RAIN) 10.7% -16.4% -25.3% -62.4% 275.2% 286.7%
IN Chemicals 1.5% 0.2% -3.8% -2.4% 66.6% 211.3%
IN Market 1.8% 1.1% -8.4% -5.4% 33% 81.8%
1 Year Return vs Industry and Market
  • RAIN underperformed the Chemicals industry which returned -2.4% over the past year.
  • RAIN underperformed the Market in India which returned -5.4% over the past year.
Price Volatility
RAIN
Industry
5yr Volatility vs Market
Related Companies

RAIN Value

 Is Rain Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rain Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rain Industries.

NSEI:RAIN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:RAIN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.7%
Equity Risk Premium S&P Global 7.3%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.484 (1 + (1- 35%) (168.22%))
1.014
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.73% + (1.014 * 7.27%)
15.1%

Discounted Cash Flow Calculation for NSEI:RAIN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rain Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:RAIN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (INR, Millions) 15,125.00 15,197.20 15,269.73 15,342.62 15,415.85
Source Analyst x1 Est @ 0.48% Est @ 0.48% Est @ 0.48% Est @ 0.48%
Present Value
Discounted (@ 15.1%)
13,140.53 11,470.93 10,013.46 8,741.17 7,630.54
Present value of next 5 years cash flows ₹50,996.63
NSEI:RAIN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= ₹15,415.85 × (1 + 7.73%) ÷ (15.1% – 7.73%)
₹225,281.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ₹225,281.33 ÷ (1 + 15.1%)5
₹111,509.76
NSEI:RAIN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ₹50,996.63 + ₹111,509.76
₹162,506.38
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹162,506.38 / 336.35
₹481.77
NSEI:RAIN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:RAIN represents 0.99714x of BSE:500339
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99714x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 483.15 x 0.99714
₹481.77
Value per share (INR) From above. ₹481.77
Current discount Discount to share price of ₹139.40
= -1 x (₹139.40 - ₹481.77) / ₹481.77
71.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rain Industries is available for.
Intrinsic value
>50%
Share price is ₹139.4 vs Future cash flow value of ₹481.77
Current Discount Checks
For Rain Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rain Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Rain Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rain Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rain Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:RAIN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in INR ₹30.56
BSE:500339 Share Price ** BSE (2018-12-14) in INR ₹139.8
India Chemicals Industry PE Ratio Median Figure of 238 Publicly-Listed Chemicals Companies 16.03x
India Market PE Ratio Median Figure of 2,724 Publicly-Listed Companies 16.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rain Industries.

NSEI:RAIN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500339 Share Price ÷ EPS (both in INR)

= 139.8 ÷ 30.56

4.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rain Industries is good value based on earnings compared to the IN Chemicals industry average.
  • Rain Industries is good value based on earnings compared to the India market.
Price based on expected Growth
Does Rain Industries's expected growth come at a high price?
Raw Data
NSEI:RAIN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.57x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
12.8%per year
India Chemicals Industry PEG Ratio Median Figure of 69 Publicly-Listed Chemicals Companies 1.09x
India Market PEG Ratio Median Figure of 650 Publicly-Listed Companies 1.14x

*Line of best fit is calculated by linear regression .

NSEI:RAIN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.57x ÷ 12.8%

0.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rain Industries is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Rain Industries's assets?
Raw Data
NSEI:RAIN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in INR ₹136.32
BSE:500339 Share Price * BSE (2018-12-14) in INR ₹139.8
India Chemicals Industry PB Ratio Median Figure of 274 Publicly-Listed Chemicals Companies 1.69x
India Market PB Ratio Median Figure of 3,547 Publicly-Listed Companies 1.17x
NSEI:RAIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500339 Share Price ÷ Book Value per Share (both in INR)

= 139.8 ÷ 136.32

1.03x

* Primary Listing of Rain Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rain Industries is good value based on assets compared to the IN Chemicals industry average.
X
Value checks
We assess Rain Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Rain Industries has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RAIN Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rain Industries expected to grow at an attractive rate?
  • Rain Industries's earnings growth is expected to exceed the low risk savings rate of 7.7%.
Growth vs Market Checks
  • Rain Industries's earnings growth is positive but not above the India market average.
  • Rain Industries's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:RAIN Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:RAIN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 12.8%
NSEI:RAIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 10.5%
India Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
India Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 13.9%
India Market Earnings Growth Rate Market Cap Weighted Average 19%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:RAIN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:RAIN Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-12-31 157,121 16,306 11,664 3
2018-12-31 142,128 15,970 10,054 2
NSEI:RAIN Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-09-30 137,464 10,279
2018-06-30 133,050 10,988
2018-03-31 121,389 9,555
2017-12-31 113,007 8,681 7,636
2017-09-30 105,876 4,778
2017-06-30 97,712 3,590
2017-03-31 96,399 3,425
2016-12-31 92,582 15,667 2,909
2016-09-30 92,973 1,945
2016-06-30 97,491 1,741
2016-03-31 98,413 1,628
2015-12-31 102,185 12,382 3,233

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rain Industries's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
  • Rain Industries's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:RAIN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Rain Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RAIN Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-12-31 34.66 40.59 24.40 3.00
2018-12-31 29.90 32.20 27.60 2.00
NSEI:RAIN Past Financials Data
Date (Data in INR Millions) EPS *
2018-09-30 30.56
2018-06-30 32.66
2018-03-31 28.41
2017-12-31 22.70
2017-09-30 14.20
2017-06-30 10.69
2017-03-31 10.18
2016-12-31 8.65
2016-09-30 5.78
2016-06-30 5.18
2016-03-31 4.84
2015-12-31 9.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Rain Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Rain Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rain Industries has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RAIN Past Performance

  How has Rain Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rain Industries's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rain Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Rain Industries's 1-year earnings growth exceeds its 5-year average (115.2% vs 32.7%)
  • Rain Industries's earnings growth has exceeded the IN Chemicals industry average in the past year (115.2% vs 21.6%).
Earnings and Revenue History
Rain Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rain Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RAIN Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 137,464.19 10,279.44 12,883.62
2018-06-30 133,050.49 10,988.09 12,469.33
2018-03-31 121,389.23 9,555.35 11,054.61
2017-12-31 113,007.32 7,635.87 11,458.37
2017-09-30 105,876.13 4,777.81 10,584.70
2017-06-30 97,712.42 3,589.62 10,359.44
2017-03-31 96,398.88 3,424.93 18,171.38
2016-12-31 92,581.75 2,909.42 10,515.15
2016-09-30 92,973.43 1,945.21 10,199.76
2016-06-30 97,491.44 1,741.31 10,551.13
2016-03-31 98,412.66 1,627.57 10,301.21
2015-12-31 102,185.31 3,233.39 10,272.98
2015-09-30 106,138.67 1,311.70 22,855.86
2015-06-30 109,018.47 1,444.10 22,795.26
2015-03-31 113,816.27 1,227.90 22,847.76
2014-12-31 119,369.87 885.30 10,391.04
2014-09-30 122,654.27 3,354.66 22,184.21
2014-06-30 122,717.37 3,073.56 21,822.81
2014-03-31 120,885.47 3,230.16 21,150.21
2013-12-31 117,443.37 3,845.26 20,428.20
2013-09-30 99,020.89 3,435.59 15,209.43
2013-06-30 81,612.99 3,486.79 12,395.03
2013-03-31 66,452.99 3,846.19 9,916.03
2012-12-31 53,614.49 4,577.49 7,322.35
2012-09-30 56,829.17 6,316.75 6,998.12
2012-06-30 57,422.97 6,575.85 6,576.22
2012-03-31 57,330.47 6,469.25 6,155.72
2011-12-31 56,395.15 6,641.25 5,955.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Rain Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Rain Industries used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
  • Rain Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rain Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rain Industries has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RAIN Health

 How is Rain Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rain Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rain Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rain Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Rain Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rain Industries Company Filings, last reported 2 months ago.

NSEI:RAIN Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 47,134.11 79,099.03 7,208.12
2018-06-30 47,134.11 79,099.03 7,208.12
2018-03-31 40,454.27 40,587.97 9,510.61
2017-12-31 40,454.27 73,323.02 8,968.25
2017-09-30 34,869.16 69,574.87 8,877.38
2017-06-30 34,869.16 69,574.87 8,877.38
2017-03-31 30,859.08 74,493.10 10,490.81
2016-12-31 32,353.12 73,261.78 10,168.66
2016-09-30 31,918.27 76,243.88 8,210.69
2016-06-30 31,918.27 76,243.88 8,210.69
2016-03-31 29,399.18 75,956.91 8,740.23
2015-12-31 29,399.18 75,956.91 8,740.23
2015-09-30 29,518.60 72,072.10 7,286.10
2015-06-30 29,518.60 72,072.10 7,286.10
2015-03-31 29,674.12 76,726.00 9,190.53
2014-12-31 29,674.12 76,725.99 9,190.52
2014-09-30 33,368.20 80,543.60 12,921.50
2014-06-30 33,368.20 80,543.60 12,921.50
2014-03-31 32,649.25 82,905.43 8,511.89
2013-12-31 32,649.25 82,905.43 8,511.89
2013-09-30 29,359.90 77,411.40 7,571.60
2013-06-30 29,359.90 77,411.40 7,571.60
2013-03-31 25,637.19 69,268.48 46,657.10
2012-12-31 25,637.19 69,268.48 46,657.10
2012-09-30 25,509.10 35,440.30 12,456.90
2012-06-30 25,509.10 35,440.30 12,456.90
2012-03-31 21,275.48 37,787.13 8,298.80
2011-12-31 21,275.48 37,468.23 8,293.95
  • Rain Industries's level of debt (167.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (263.5% vs 167.8% today).
  • Debt is not well covered by operating cash flow (11%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
X
Financial health checks
We assess Rain Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rain Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RAIN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.43%
Current annual income from Rain Industries dividends. Estimated to be 1.43% next year.
If you bought ₹2,000 of Rain Industries shares you are expected to receive ₹29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rain Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • Rain Industries's dividend is below the markets top 25% of dividend payers in India (1.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:RAIN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
India Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 165 Stocks 0.9%
India Market Average Dividend Yield Market Cap Weighted Average of 1394 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:RAIN Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2019-12-31 2.00 1.00
2018-12-31 2.00 1.00
NSEI:RAIN Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-11-14 2.000 1.423
2018-02-28 2.000 0.896
2017-11-08 2.000 0.532
2017-08-11 2.000 1.147
2017-05-11 1.000 0.898
2017-02-23 1.000 0.965
2016-11-11 1.000 1.716
2016-08-16 1.000 2.062
2016-04-01 1.000 2.906
2016-02-19 1.000 3.328
2015-11-10 1.000 2.768
2015-08-14 1.000 2.631
2015-02-27 1.000 2.633
2014-11-07 1.000 2.349
2014-04-07 1.000 2.311
2014-02-26 1.000 2.818
2013-11-14 1.000 2.773
2013-02-25 1.100 2.864
2012-04-25 1.100 2.972
2011-02-25 0.920 2.838
2010-04-26 0.740 2.319
2009-12-31 0.740 1.773
2009-06-18 0.740 2.206

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Rain Industries has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Rain Industries only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Rain Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (30.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Rain Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rain Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rain Industries has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RAIN Management

 What is the CEO of Rain Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jagan Reddy Nellore
COMPENSATION ₹16,840,000
AGE 51
TENURE AS CEO 7.8 years
CEO Bio

Mr. N. Jagan Mohan Reddy serves as Managing Director of Rain Cements Limited. Mr. Reddy has been Managing Director of Rain CII Carbon (Vizag) Limited and Rain Commodities Limited since February 10, 2011. He received initial training in the cement industry which utilizes technology similar to a calcination plant and worked with companies and consultants experienced in the calcining industry to develop the project. Mr. Reddy conceived the project and obtained a grant of US$ 500,000 from the United States Trade and Development Agency (USTDA) for conducting the feasibility study for the Calcination project, which was conducted by Pace Consultants Inc. (Pace), U.S.A. (now, Jacobs). He serves as a Director of Rain CII Carbon (Vizag) Limited. He has been an Executive Director of Rain Industries Limited since February 10, 2011. He serves as a Director of Rain Commodities (USA) Inc., Moonglow Company Business Inc. and Sujala Investments Private Limited. Mr. Reddy served as a Non Executive Director of Rain Commodities Limited. Mr. Reddy has a Bachelor's degree in Industrial Engineering from Purdue University, USA.

CEO Compensation
  • Jagan's compensation has been consistent with company performance over the past year.
  • Jagan's remuneration is lower than average for companies of similar size in India.
Management Team

Jagan Reddy Nellore

TITLE
MD & Executive Director
COMPENSATION
₹17M
AGE
51
TENURE
7.8 yrs

T. Rao

TITLE
CFO & Chief Risk Officer
COMPENSATION
₹14M
AGE
51
TENURE
6.7 yrs

Suswaram Sridhar

TITLE
Chief Information Officer
AGE
49

S. Venkat Reddy

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹4M
AGE
45

V. Srikanth

TITLE
Deputy General Manager of Legal
AGE
53

M. Krishnamohan Reddy

TITLE
General Manager of Human Resources
AGE
56

Balasubramanian Ramaswamy

TITLE
Chief Internal Auditor
AGE
50

K. Sathish

TITLE
Deputy General Manager of IT
AGE
41

Manish Agarwal

TITLE
Assistant General Manager of F&A
AGE
39

Madhu Gondi

TITLE
Senior Manager of IT
AGE
45
Board of Directors Tenure

Average tenure and age of the Rain Industries board of directors in years:

7.4
Average Tenure
66
Average Age
  • The tenure for the Rain Industries board of directors is about average.
Board of Directors

N. Reddy

TITLE
Chairman of the Board
COMPENSATION
₹400K
AGE
76

Jagan Reddy Nellore

TITLE
MD & Executive Director
COMPENSATION
₹17M
AGE
51
TENURE
7.8 yrs

Hira Zutshi

TITLE
Independent Director
COMPENSATION
₹2M
AGE
76
TENURE
7.4 yrs

Radhika Haribhakti

TITLE
Independent Director
COMPENSATION
₹2M
AGE
61
TENURE
4.1 yrs

Sujith Reddy Nellore

TITLE
Non-Executive Director
AGE
47
TENURE
26.8 yrs

Varun Batra

TITLE
Independent Director
AGE
52
TENURE
0.8 yrs

Surendra Rao

TITLE
Independent Director
COMPENSATION
₹1M
AGE
82
TENURE
7.6 yrs

Nirmala Reddy

TITLE
Independent Director
COMPENSATION
₹2M
AGE
71
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Rain Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rain Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RAIN News

External News
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Simply Wall St News

Could Rain Industries Limited's (NSE:RAIN) Investor Composition Influence The Stock Price?

A look at the shareholders of Rain Industries Limited (NSE:RAIN) can tell us which group is most powerful. … Rain Industries is not a large company by global standards. … See our latest analysis for Rain Industries

Simply Wall St -

What Is Rain Industries Limited's (NSE:RAIN) Share Price Doing?

received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹210.75 at one point, and dropping to the lows of ₹147. … A question to answer is whether Rain Industries's current trading price of ₹147 reflective of the actual value of the? … Let’s take a look at Rain Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

How Should Investors React To Rain Industries Limited's (NSE:RAIN) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jagan Reddy Nellore's Compensation Compare With Similar Sized Companies. … According to our data, Rain Industries Limited has a market capitalization of ₹62b, and pays its CEO total annual compensation worth ₹17m.

Simply Wall St -

Do You Like Rain Industries Limited (NSE:RAIN) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate Rain Industries's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

A Closer Look At Rain Industries Limited's (NSE:RAIN) Impressive ROE

Our data shows Rain Industries has a return on equity of 24% for the last year. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.24 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Who Really Owns Rain Industries Limited (NSE:RAIN)?

If you want to know who really controls Rain Industries Limited (NSE:RAIN), then you'll have to look at the makeup of its share registry. … With a market capitalization of ₹71.10b, Rain Industries is a decent size, so it is probably on the radar of institutional investors. … View our latest analysis for Rain Industries

Simply Wall St -

How Does Rain Industries Limited (NSE:RAIN) Affect Your Portfolio Returns?

Broadly speaking, there are two types of risk you should consider when investing in stocks such as RAIN. … The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one.

Simply Wall St -

Has Rain Industries Limited (NSE:RAIN) Improved Earnings In Recent Times?

When Rain Industries Limited (NSE:RAIN) announced its most recent earnings (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Being able to interpret how well Rain Industries has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. … Check out our latest analysis for Rain Industries?

Simply Wall St -

What Are Analysts Saying About Rain Industries Limited's (NSE:RAIN) Profit Margin?

Rain Industries Limited (NSE:RAIN) to … earnings growth of 15.25% annualised … it's necessary to take a moment

Simply Wall St -

Should You Worry About Rain Industries Limited's (NSE:RAIN) CEO Pay?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability

Simply Wall St -

RAIN Company Info

Map
Description

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon and chemical products worldwide. The company operates through Carbon, Chemicals, and Cement segments. It offers calcined petroleum coke, coal tar pitch, and green petroleum coke; and other derivatives of coal tar distillation, including creosote oil, naphthalene, phthalic anhydride, CARBORES, and others. The company also engages in the co-generation of energy through waste heat recovered in the calcining process; and downstream processing of coal tar distillation products, including naphthalene, benzene, carbolic oil, etc., as well as resins and modifiers, aromatic chemicals, superplasticizers, and other specialty products that are used in various end-markets, including paints, coatings, construction, plastics, paper, tires, rail ties, insulation, and foam. In addition, it produces and sells cement under the Priya Cement brand name. The company was formerly known as Rain Commodities Limited and changed its name to Rain Industries Limited in July 2013. Rain Industries Limited was incorporated in 1974 and is headquartered in Hyderabad, India.

Details
Name: Rain Industries Limited
RAIN
Exchange: NSEI
Founded: 1974
₹47,021,125,924
336,345,679
Website: http://www.rain-industries.com
Address: Rain Industries Limited
Rain Center,
34, Srinagar Colony,
Hyderabad,
Andhra Pradesh, 500073,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500339 Equity Shares Mumbai Stock Exchange IN INR 05. Jul 1994
NSEI RAIN Equity Shares National Stock Exchange of India IN INR 05. Jul 1994
Number of employees
Current staff
Staff numbers
2,500
Rain Industries employees.
Industry
Commodity Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/15 12:48
End of day share price update: 2018/12/14 00:00
Last estimates confirmation: 2018/11/17
Last earnings filing: 2018/11/14
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.