Mehabe score: 2 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Rain Industries Limited (RAIN) is a leading vertically integrated producer of carbon, cement and Advanced materials products. Headquartered in India, RAIN has manufacturing facilities in eight countries across three continents. [1] Site:RAIN Main Symbol:RAIN
Stock trades at 192.0, below its 50dma 202.36 and below its 200dma 205.4. The stock remains bearish on technicals
The 52 week high is at 272.90 and the 52week low is at 147.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.06 times its book value
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 9.43% over past five years.
– has a low return on equity of 9.61% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 6.81% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 35.4x. Adani Enterp. trades at the industry’s max P/E of 290.19x. RAIN trades at a P/E of 11.2x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. RAIN has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 15.7%. The max 1- month return was given by Adani Enterp.: a return of 31.06 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 4026.0 cr compared to Rs 2640.0 cr for period ended Dec 2020, a rise of 52.5% .
vis-vis 381.0 for period ended Dec 2020 .
Operating Margins contracted -231.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 488.0 cr for period ended Dec 2021 and operating profit margin at 12.1 % for same period.
The EPS for quarter ended Dec 2021 is Rs -2.88 compared to Rs 7.0 for previous quarter ended Sep 2021 and Rs 9.13 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14527.0 cr for period ended Dec 2021 vis-vis sales of Rs 10465.0 cr for the period ended Dec 2020, a healthy growth of 28.0%. The 3 year sales cagr stood at 1.1%.
Net Profit reported at Rs 580.0 cr for period ended Dec 2021 vis-vis sales of Rs 558.0 cr for the period ended Dec 2020, rising 3.8%.
Company reported a poor Net Profit CAGR of -0.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 19% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is 39% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 4% vis-vis a compounded profit growth of 0% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 14.08% vis-vis 12.26% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 44.48% vis-vis 46.32% for Sep 2021
Conclusion
– Stock is trading at 1.06 times its book value
– is expected to give good quarter – The company has delivered a poor sales growth of 9.43% over past five years.
– has a low return on equity of 9.61% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 6.81% of profits over last 3 years
