NSEI:RAIN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Rain Industries is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.1%

RAIN

3.0%

IN Chemicals

2.0%

IN Market


1 Year Return

-43.7%

RAIN

4.7%

IN Chemicals

-6.2%

IN Market

RAIN underperformed the Chemicals industry which returned 4.7% over the past year.

RAIN underperformed the Market in India which returned -6.2% over the past year.


Share holder returns

RAINIndustryMarket
7 Day-6.1%3.0%2.0%
30 Day29.7%6.7%5.2%
90 Day5.2%3.7%-3.7%
1 Year-43.3%-43.7%5.9%4.7%-4.3%-6.2%
3 Year124.2%120.4%34.5%30.3%20.7%14.6%
5 Year128.0%109.6%120.4%107.9%41.3%28.0%

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 based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Rain Industries is overvalued based on earnings compared to the IN Chemicals industry average.

Rain Industries is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Rain Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

Rain Industries is good value based on assets compared to the IN Chemicals industry average.


Next Steps

Future Growth

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

10.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rain Industries's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

Unable to determine if Rain Industries is high growth as no earnings estimate data is available.

Rain Industries's revenue growth is positive but not above the India market average.

Unable to compare Rain Industries's earnings growth to the India market average as no estimate data is available.

Unable to compare Rain Industries's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Rain Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Rain Industries performed over the past 5 years?

29.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rain Industries has delivered over 20% year on year earnings growth in the past 5 years.

Rain Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Rain Industries's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.


Return on Equity

Rain Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rain Industries used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Rain Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rain Industries's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Rain Industries's level of debt (147.2%) 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 (238.4% vs 147.2% today).

Debt is well covered by operating cash flow (23.2%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Rain Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Rain Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Rain Industries has not reported any payouts.

Unable to verify if Rain Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Rain Industries has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

N. Reddy (77yo)

0.5yrs

Tenure

₹400,000

Compensation

Mr. N. Radhakrishna Reddy serves as the Managing Director of Rain Industries Limited since March 31, 2019. Mr. Reddy has more than 44 years of experience in Construction and Cement Industry. He served as t ...


Board Age and Tenure

2.3yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Rain Industries board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • S. Venkat Reddy (46yo)

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹4.42m
  • T. Rao (52yo)

    CFO & Chief Risk Officer

    • Tenure: 7.4yrs
    • Compensation: ₹15.35m
  • N. Reddy (77yo)

    MD & Director

    • Tenure: 0.5yrs
    • Compensation: ₹400.00k
  • Balasubramanian Ramaswamy (51yo)

    Chief Internal Auditor

    • Tenure: 0yrs
  • M. Krishnamohan Reddy (57yo)

    General Manager of Human Resources

    • Tenure: 0yrs
  • V. Srikanth (54yo)

    Deputy General Manager of Legal

    • Tenure: 0yrs
  • Rajan Passi (55yo)

    Head of Logistics (SSO)

    • Tenure: 0yrs
  • U. Saranga Pani (35yo)

    Assistant General Manager of Corporate Finance

    • Tenure: 0yrs

Board Members

  • Hira Zutshi (77yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: ₹1.66m
  • Jagan Reddy Nellore (52yo)

    Vice Chairman

    • Tenure: 0.5yrs
    • Compensation: ₹16.84m
  • Radhika Haribhakti (62yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹1.66m
  • Sujith Reddy Nellore (48yo)

    Non-Executive Director

    • Tenure: 27.5yrs
  • N. Reddy (77yo)

    MD & Director

    • Tenure: 0.5yrs
    • Compensation: ₹400.00k
  • Varun Batra (53yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: ₹1.24m
  • Nirmala Reddy (72yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: ₹1.72m
  • Brian McNamara (57yo)

    Independent Director

    • Tenure: 0.6yrs

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: ₹34.745b
  • Shares outstanding: 336.35m
  • Website: https://www.rain-industries.com

Number of Employees


Location

  • Rain Industries Limited
  • Rain Center
  • 34, Srinagar Colony
  • Hyderabad
  • Andhra Pradesh
  • 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 Analysis2019/09/23 12:48
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.