Rane (Madras) Limited
Rane (Madras) Limited Fundamental Analysis
Rane (Madras) Limited (RML.BO) shows weak financial fundamentals with a PE ratio of 33.68, profit margin of 2.07%, and ROE of 13.52%. The company generates $37.2B in annual revenue with weak year-over-year growth of -1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -12.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RML.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakRML.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateRML.BO shows balanced valuation metrics.
Growth Score
WeakRML.BO faces weak or negative growth trends.
Financial Health Score
WeakRML.BO carries high financial risk with limited liquidity.
Profitability Score
WeakRML.BO struggles to sustain strong margins.
Key Financial Metrics
Is RML.BO Expensive or Cheap?
P/E Ratio
RML.BO trades at 33.68 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RML.BO's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Rane (Madras) Limited at 3.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.57 times EBITDA. This is generally considered low.
How Well Does RML.BO Make Money?
Net Profit Margin
For every $100 in sales, Rane (Madras) Limited keeps $2.07 as profit after all expenses.
Operating Margin
Core operations generate 4.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.52 in profit for every $100 of shareholder equity.
ROA
Rane (Madras) Limited generates $3.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rane (Madras) Limited generates limited operating cash flow of $237.73M, signaling weaker underlying cash strength.
Free Cash Flow
Rane (Madras) Limited generates weak or negative free cash flow of $-697.40M, restricting financial flexibility.
FCF Per Share
Each share generates $-25.23 in free cash annually.
FCF Yield
RML.BO converts -2.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How RML.BO Stacks Against Its Sector Peers
| Metric | RML.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.68 | 24.26 | Worse (Expensive) |
| ROE | 13.52% | 1130.00% | Weak |
| Net Margin | 2.07% | 814.00% | Weak |
| Debt/Equity | 1.22 | 0.59 | Weak (High Leverage) |
| Current Ratio | 0.88 | 2.81 | Weak Liquidity |
| ROA | 3.20% | -8103.00% (disorted) | Weak |
RML.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rane (Madras) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
105.14%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
163.12%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
173.85%
Industry Style: Cyclical, Growth, Discretionary
High Growth