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Rane (Madras)
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Rane (Madras) Ltd, a part of the Rane group, is a manufacturer of steering and suspension systems. The company operates under one division, namely components for transportation industry. They manufacture two types of steering gears, namely, circulating ball type steering gears, and rack and pinion type steering gears. The other products include tie rod assemblies, drag link assemblies, center link assemblies and gear shift ball joints. The company is a subsidiary company of Rane Holdings Ltd.
The company is having their manufacturing facilities located at Chennai and Kancheepuram in Tamil Nadu, Mysore in Karnataka, Thirubuvanai in Pondicherry and Pantnagar in Uttarakhand. The production facilities in Mysore cater to the tractor and commercial vehicle segment; the Pondicherry plant to the passenger car segment; the plant in Chennai caters to the light commercial vehicle, heavy commercial vehicle and utility vehicle segment; the Kancheepuram plant to the export market and the manufacturing facility in Pantnagar (Uttarakhand) supplies gears exclusively to Tata Motors Ltd.
Rane (Madras) Ltd was incorporated on March 31, 2004 as a public limited company with the name Rane Holdings Ltd. The name of the company was subsequently changed to Rane (Madras) Manufacturing Ltd with effect from February 22, 2005.
In April 2005, the manufacturing undertaking of the erstwhile Rane (Madras) Ltd was de-merged and transferred to the company with effect from July 1, 2004. In terms of the scheme, the de-merged company was renamed as Rane Holding Ltd and the name of the company was changed from Rane (Madras) Manufacturing Ltd to Rane (Madras) Ltd with effect from May 19, 2005.
During the year 2005-06, the company increased the production capacity of Steering gear products from 590,300 Nos to 597,500 Nos.
During the year 2006-07, the company set up a new plant for manufacture of ball joints in Ambakkam, Varanasi Village, Kancheepuram primarily to cater to the export markets. They commenced commercial production during the year. They also set up a manufacturing facility at Integral Industrial Estate, Pant Nagar, Uttarakhand, for supply of Steering Gears exclusively to Tata Motors Ltd.
Rane Holding Ltd made additional investment in the company, and thus the company became a wholly owned subsidiary of the Rane Holdings Ltd with effect from March 26, 2007.
Rane (Madras) share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Rane (Madras) indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Rane (Madras) is valued compared to its competitors.
Rane (Madras) PE ratio helps investors understand what is the market value of each stock compared to Rane (Madras) 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Rane (Madras) evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Rane (Madras) generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Rane (Madras) in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Rane (Madras) shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Rane (Madras) compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Rane (Madras) over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Rane (Madras) helps investors get an insight into when they can enter or exit the stock. Key components of Rane (Madras) Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Rane (Madras) shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Rane (Madras) ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Rane (Madras) provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Rane (Madras) highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Rane (Madras) .
The balance sheet presents a snapshot of Rane (Madras) ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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