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Rain Industries

NSEI:RAIN
Snowflake Description

Very undervalued with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAIN
NSEI
₹58B
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 111 days ago. More info.


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  • Rain Industries has significant price volatility in the past 3 months.
RAIN Share Price and Events
Price Volatility
RAIN
Industry
5yr Volatility vs Market

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 13.5%
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 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.513 (1 + (1- 35%) (70.3%))
0.748
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.73% + (0.8 * 7.27%)
13.55%

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
2018 2019 2020 2021 2022
Levered FCF (INR, Millions) 11,847.00 16,653.00 16,491.40 16,331.37 16,172.89
Source Analyst x1 Analyst x1 Extrapolated @ (-0.97%) Extrapolated @ (-0.97%) Extrapolated @ (-0.97%)
Present Value
Discounted (@ 13.55%)
10,433.66 12,916.62 11,265.28 9,825.06 8,568.97
Present value of next 5 years cash flows ₹53,010
NSEI:RAIN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= ₹16,173 × (1 + 7.73%) ÷ (13.55% – 7.73%)
₹299,571
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ₹299,571 ÷ (1 + 13.55%)5
₹158,723
NSEI:RAIN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ₹53,010 + ₹158,723
₹211,733
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹211,733 / 336
₹625.84
NSEI:RAIN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:RAIN represents 0.99417x of BSE:500339
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99417x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 629.51 x 0.99417
₹625.84
Value per share (INR) From above. ₹625.84
Current discount Discount to share price of ₹170.65
= -1 x (₹170.65 - ₹625.84) / ₹625.84
72.7%

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 ₹170.65 vs Future cash flow value of ₹625.84
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 () in INR ₹28.41
BSE:500339 Share Price ** BSE (2018-07-19) in INR ₹171.65
India Chemicals Industry PE Ratio Median Figure of 353 Publicly-Listed Chemicals Companies 18.01x
India Market PE Ratio Median Figure of 3,979 Publicly-Listed Companies 20.41x

* 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)

= 171.65 ÷ 28.41

6.04x

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 6.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
15.2%per year
India Chemicals Industry PEG Ratio Median Figure of 130 Publicly-Listed Chemicals Companies 1.1x
India Market PEG Ratio Median Figure of 1,217 Publicly-Listed Companies 1.27x

*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

= 6.04x ÷ 15.2%

0.4x

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 () in INR ₹117.22
BSE:500339 Share Price * BSE (2018-07-19) in INR ₹171.65
India Chemicals Industry PB Ratio Median Figure of 397 Publicly-Listed Chemicals Companies 1.96x
India Market PB Ratio Median Figure of 5,056 Publicly-Listed Companies 1.43x
NSEI:RAIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 171.65 ÷ 117.22

1.46x

* 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
15.2%
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 expected to exceed 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 15.2%
NSEI:RAIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 13.9%
India Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
India Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 12.9%
India Market Earnings Growth Rate Market Cap Weighted Average 17.1%
India Market Revenue Growth Rate Market Cap Weighted Average 11.5%

*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 (3 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
2020-12-31
2019-12-31 155,918 18,831 12,575 3
2018-12-31 137,678 17,592 11,026 3
NSEI:RAIN Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
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
2015-09-30 106,139 1,312
2015-06-30 109,018 1,444

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rain Industries's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
  • Rain Industries's revenue is expected to grow by 13.9% 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 (3 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 3 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
2020-12-31
2019-12-31 37.45 40.59 34.30 2.00
2018-12-31 32.78 33.46 32.10 2.00
NSEI:RAIN Past Financials Data
Date (Data in INR Millions) EPS *
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
2015-09-30 3.90
2015-06-30 4.29

*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 2/6, 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's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Rain Industries's 1-year earnings growth exceeds its 5-year average (179% vs -4.2%)
  • Rain Industries's earnings growth has exceeded the IN Chemicals industry average in the past year (179% vs 13.3%).
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 3 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
2018-03-31 121,389.23 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
2011-09-30 51,620.28 5,260.67 4,810.49

*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 5/6, 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's short term (1 year) commitments are greater than 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 covered by short term assets, assets are 1.2x 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 3 months ago.

NSEI:RAIN Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
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
2011-09-30 17,686.80 33,057.50 4,786.50
  • Rain Industries's level of debt (100.3%) 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 (270.1% vs 100.3% today).
  • Debt is well covered by operating cash flow (21.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x 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
1.17%
Current annual income from Rain Industries dividends. Estimated to be 1.36% next year.
If you bought ₹2,000 of Rain Industries shares you are expected to receive ₹23 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 (0.47%).
  • Rain Industries's dividend is below the markets top 25% of dividend payers in India (1.63%).
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 272 Stocks 0.9%
India Market Average Dividend Yield Market Cap Weighted Average of 2341 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.2%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.6%

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
2020-12-31 3.00 1.00
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 (%)
2018-02-28 2.000 0.761
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
2008-07-21 0.700 2.300

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 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 net profit (14.2x 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 0.2%) - 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 4/6, 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
N. Jagan Reddy, image provided by Google.
N. Jagan Reddy
COMPENSATION ₹16,840,000
AGE 51
TENURE AS CEO 7.4 years
CEO Bio

Mr. N. Jagan Mohan Reddy serves as Managing Director of Rain Cements Limited. Mr. Reddy has been Managing Director of Rain Industries 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 Cements 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
  • N. Jagan's compensation has increased by more than 20% in the past year.
  • N. Jagan's compensation appears reasonable for a company of this size and profit level.
Management Team

N. Jagan Reddy

TITLE
Managing Director and Executive Director
COMPENSATION
₹17M
AGE
51
TENURE
7.4 yrs

T. Rao

TITLE
Chief Financial Officer and Chief Risk Officer
COMPENSATION
₹12M
AGE
51
TENURE
12.1 yrs

S. Venkat Reddy

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹4M
Board of Directors Tenure

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

7
Average Tenure
66
Average Age
  • The tenure for the Rain Industries board of directors is about average.
Board of Directors

N. Reddy

TITLE
Chairman
COMPENSATION
₹500K
AGE
77

N. Jagan Reddy

TITLE
Managing Director and Executive Director
COMPENSATION
₹17M
AGE
51
TENURE
7.4 yrs

Surendra Rao

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

Hira Zutshi

TITLE
Independent Director
COMPENSATION
₹1M
AGE
76
TENURE
7 yrs

N. Sujith Reddy

TITLE
Non-Executive Director
AGE
48
TENURE
10.3 yrs

Varun Batra

TITLE
Additional Independent Director
AGE
51
TENURE
0.4 yrs

Radhika Haribhakti

TITLE
Independent Director
COMPENSATION
₹1M
AGE
61
TENURE
3.7 yrs

Nirmala Reddy

TITLE
Independent Director
COMPENSATION
₹520K
AGE
71
TENURE
1.8 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Rain Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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

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 -

Does Rain Industries Limited's (NSE:RAIN) PE Ratio Warrant A Buy?

and want to better understand how you can grow your money by investing in Rain Industries Limited (NSE:RAIN). … Rain Industries Limited (NSE:RAIN) is currently trading at a trailing P/E of 7.1x, which is lower than the industry average of 18.1x. … While this makes RAIN appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

How Do Analysts See Rain Industries Limited's (NSE:RAIN) Margin Performing In The Future?

Check out our latest analysis for Rain Industries Breaking Down RAIN's Profit Margin In general, the value that accrues to equity holders is partly reliant on the ability of a company to convert sales revenue in to earnings. … Margin Calculation for RAIN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 9.56 Billion ÷ 121.39 Billion = 7.87% There has been a contraction in Rain Industries's margin over the past five years, with a positive 9.34% average growth in revenue and decline in net income of -4.53% on average, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years. … Margins are expected to move from contraction into expansion, with annual revenue growth tipped at 13.77% and 20.79% earnings growth expected annually.

Simply Wall St -

What is Behind Rain Industries Limited's (NSE:RAIN) Superior ROE?

View our latest analysis for Rain Industries Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Rain Industries’s profit relative to its shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NSEI:RAIN Last Perf May 25th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses. … Rain Industries’s above-industry ROE is encouraging, and is also in excess of its cost of equity.

Simply Wall St -

Should You Buy Rain Industries Limited (NSE:RAIN) At This PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RAIN Price per share = ₹326.2 Earnings per share = ₹22.7 ∴ Price-Earnings Ratio = ₹326.2 ÷ ₹22.7 = 14.4x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared higher growth firms with RAIN, then RAIN’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with RAIN, RAIN’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

What Should Investors Know About Rain Industries Limited's (NSE:RAIN) Growth?

In December 2017, Rain Industries Limited (NSEI:RAIN) released its latest earnings announcement, which showed that the company benefited from a substantial tailwind, more than doubling its earnings from the prior year. … Below is a brief commentary on my key takeaways on how market analysts view Rain Industries's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … This means, we can anticipate Rain Industries will grow its earnings by 21.14% every year for the next few years.

Simply Wall St -

How Do Analysts See Rain Industries Limited's (NSE:RAIN) Margin Performing In The Years Ahead?

To get a preliminary understanding, I will try to evaluate Rain Industries's margin behaviour so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for RAIN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 7.64 Billion ÷ 115.61 Billion = 6.61% The past five years have seen Rain Industries's margin contract, with a positive 10.29% average growth in revenue and decline in net income of -9.88% on average, indicating that that a smaller percentage of revenue is being converted in to net income despite the top line growth. … Understanding what could be driving Rain Industries's future earnings Margins are expected to move from contraction into expansion, with an expectation of 12.68% in annual revenue growth and annual net income growth forecasted at 32.82%.

Simply Wall St -

What You Must Know About Rain Industries Limited's (NSE:RAIN) Financial Strength

How does RAIN’s operating cash flow stack up against its debt? … Additionally, RAIN has produced ₹13,885.1M in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 18.64%, meaning that RAIN’s current level of operating cash is not high enough to cover debt. … For RAIN, the ratio of 2.73x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.Next Steps: RAIN’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Are Rain Industries Limited's (NSE:RAIN) Interest Costs Too High?

At this stable level of debt, RAIN currently has ₹10,490.8M remaining in cash and short-term investments for investing into the business. … On top of this, RAIN has generated cash from operations of ₹13,885.1M over the same time period, resulting in an operating cash to total debt ratio of 18.64%, indicating that RAIN’s current level of operating cash is not high enough to cover debt. … For RAIN, the ratio of 2.73x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.Next Steps: RAIN’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Should You Buy Rain Industries Limited (NSE:RAIN) At INR432.75?

It’s trading around 13% below my intrinsic value, which means if you buy Rain Industries today, you’d be paying a fair price for it. … Given that Rain Industries’s share is fairly volatile (i.e. … Rain Industries’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

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
₹57,733,735,800
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: 2018/07/20 12:01
End of day share price update: 2018/07/19 00:00
Last estimates confirmation: 2018/07/10
Last earnings update: 2018/03/31
Last annual earnings update: 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.