ScoreWhy is Rain Industries Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.17%
- Poor long term growth as Net Sales has grown by an annual rate of 10.85% and Operating profit at 8.13% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.31 times
2
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -3.2% over the previous quarter and collectively hold 10.56% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Rain Industries should be less than 10%
- Overall Portfolio exposure to Petrochemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Petrochemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rain Industries for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rain Industries
27.56%
0.48
48.59%
Sensex
-1.65%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.26%
EBIT Growth (5y)
6.89%
EBIT to Interest (avg)
2.07
Debt to EBITDA (avg)
6.17
Net Debt to Equity (avg)
1.11
Sales to Capital Employed (avg)
1.05
Tax Ratio
34.22%
Dividend Payout Ratio
79.10%
Pledged Shares
0
Institutional Holding
11.04%
ROCE (avg)
8.20%
ROE (avg)
5.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
25
Price to Book Value
0.86
EV to EBIT
8.89
EV to EBITDA
5.76
EV to Capital Employed
0.94
EV to Sales
0.87
PEG Ratio
0.06
Dividend Yield
0.49%
ROCE (Latest)
10.51%
ROE (Latest)
6.72%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend31What is working for the Company
OPERATING CF(Y)
Highest at Rs 21.21 Cr
ROCE(HY)
Highest at 10.50%
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.84 times
DPR(Y)
Highest at 356.07%
NET SALES(Q)
Highest at Rs 5,167.16 cr
PBDIT(Q)
Highest at Rs 964.05 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 18.66%
PBT LESS OI(Q)
Highest at Rs 468.01 cr.
PAT(Q)
Highest at Rs 296.21 cr.
EPS(Q)
Highest at Rs 8.81
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.42 times
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Here's what is working for Rain Industries
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 468.01 cr has Grown at 236.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 139.27 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 296.21 cr has Grown at 292.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 75.42 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 21.21 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 3.84 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 5,167.16 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 964.05 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 18.66%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 468.01 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 296.21 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 8.81
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 356.07%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Rain Industries
Debtors Turnover Ratio- Half Yearly
Lowest at 7.42 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
