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Rane Madras Ltd

RMLAuto Components & Equipments

Fundamental Score

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Rane Madras Ltd Share Price & Market Analysis

Current Market Price (CMP)
788.30
No change data available
Market Cap
2.12K (Cr)
Industry
Auto Components & Equipments

Profitability Metrics

Poor

Return on Equity

11.95%
Poor

Return on Capital Employed

14.27%
Poor

Operating Profit Margin (5Y)

8.76%
Average

Dividend Yield

1.04%

Valuation Metrics

Poor

Price to Earnings

38.25x

Market Capitalization

2.12K (Cr)

Industry P/E

30.45x

Growth Metrics

Excellent

YoY Quarterly Profit Growth

20.40%
Poor

YoY Quarterly Sales Growth

8.27%
Excellent

Sales Growth (5Y)

25.35%
Excellent

EPS Growth (5Y)

21.30%
Excellent

Profit Growth (5Y)

27.75%

Financial Health

Poor

Debt to Equity

1.16x
Average

Interest Coverage

2.59x
Excellent

Free Cash Flow (5Y)

247.12 (Cr)

Ownership Structure

Good

Promoter Holding

70.45%
Poor

FII Holding

0.04%
Poor

DII Holding

1.04%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Small-cap
Higher growth potential with higher volatility.
70.45%
Promoter Holding
2.12K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of RML across key market metrics for learning purposes.

Positive Indicators

7 factors identified

Robust Profit Growth (20.40%)

Observation: Strong year-over-year profit expansion demonstrates business momentum.

Analysis: Profit growth >20% indicates effective execution and market opportunity capture. This suggests positive business trajectory.

Consistent Growth Track Record (25.35% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Excellent EPS Growth (21.30% CAGR)

Observation: Outstanding 5-year earnings per share compound growth.

Analysis: EPS CAGR >15% indicates strong wealth creation potential and effective capital allocation over extended periods.

Strong Profit Growth Track Record (27.75% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Strong Cash Generation (₹247.12 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Balanced Promoter Holding (70.45%)

Observation: Optimal balance between promoter control and public float.

Analysis: Promoter holding in 50-75% range provides management alignment while ensuring adequate liquidity.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

3 factors identified

Elevated Debt Levels (D/E: 1.16)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Limited Institutional Interest (FII+DII: 1.08%)

Observation: Low institutional participation may affect liquidity and visibility.

Analysis: Limited institutional interest may indicate size constraints or visibility issues in the investment community.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

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Financial Statements

Comprehensive financial data for Rane Madras Ltd

About RML

Company Details

Symbol:RML
Industry:Auto Components & Equipments
Sector:Auto Components & Equipments

Market Information

Market Cap:2.12K (Cr)
P/E Ratio:38.25
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:1.04%

RML Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)11.95%
Return on Capital Employed14.27%
Operating Profit Margin (5Y)8.76%
Debt to Equity Ratio1.16
Interest Coverage Ratio2.59

Growth & Valuation

Sales Growth (5Y)25.35%
Profit Growth (5Y)27.75%
EPS Growth (5Y)21.30%
YoY Quarterly Profit Growth20.40%
YoY Quarterly Sales Growth8.27%

Frequently Asked Questions

What is the current price of RML?

RML is currently trading at ₹788.30 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of RML shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of RML and what does it mean?

RML has a P/E ratio of 38.25x compared to the industry average of 30.45x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹38 for every ₹1 of annual earnings. This is higher than the industry average, suggesting either growth premium or potential overvaluation.

How is RML performing according to Bull Run's analysis?

RML has a Bull Run fundamental score of 54.9/100, which indicates moderate strength with some areas for improvement. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 11.95%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does RML belong to?

RML operates in the Auto Components & Equipments industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting Rane Madras Ltd. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for RML?

RML has an ROE of 11.95%, which shows decent profitability but room for improvement. Return on Equity measures how efficiently Rane Madras Ltd generates profits from shareholders' equity. An ROE of 12% means the company generates ₹12 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is RML's debt-to-equity ratio and what does it indicate?

RML has a debt-to-equity ratio of 1.16, which indicates high leverage that increases financial risk. This means the company has ₹116 of debt for every ₹100 of equity. Higher leverage can amplify returns during good times but increases bankruptcy risk during downturns.

What is RML's dividend yield and is it a good dividend stock?

RML offers a dividend yield of 1.04%, which means you receive ₹1.04 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has RML grown over the past 5 years?

RML has achieved 5-year growth rates of: Sales Growth 25.35%, Profit Growth 27.75%, and EPS Growth 21.30%. This consistent double-digit growth indicates a strong business model and competitive positioning. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in RML and why does it matter?

Promoters hold 70.45% of RML shares, with 0.00% of promoter shares pledged. This high promoter holding indicates strong management confidence and alignment with shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: 0.00%.

How does RML compare with its industry peers?

RML trades at P/E 38.25x vs industry average 30.45x, with ROE of 11.95% and ROCE of 14.27%. The stock trades at a premium to industry average, which may be justified by superior fundamentals. Peer comparison helps identify whether RML is outperforming its competitive set in profitability, growth, and valuation metrics.

What is RML's market capitalization and what category does it fall into?

RML has a market capitalization of ₹2123 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for RML?

Key ratios for RML: ROE 11.95% (Good), ROCE 14.27%, P/E 38.25x, Debt-to-Equity 1.16, Interest Coverage 2.59x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is RML stock and what is its beta?

RML has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for RML?

RML has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹788.30, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in RML?

Key risks for RML include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 1.16), and operational challenges. The stock has a Fundamental Score of 54.9/100, indicating moderate risk requiring careful monitoring. Sector-specific risks in Auto Components & Equipments include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is RML's operating profit margin and how has it trended?

RML has a 5-year average Operating Profit Margin (OPM) of 8.76%, which suggests room for improvement in operational efficiency. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. Monitor margin trends to assess management's ability to control costs and improve efficiency. Compare with industry peers to understand relative performance.

How is RML's quarterly performance in terms of sales and profit growth?

RML's recent quarterly performance shows YoY Sales Growth of 8.27% and YoY Profit Growth of 20.40%. Growth rates indicate the current business trajectory and market demand. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in RML?

RML has FII holding of 0.04% and DII holding of 1.04%, totaling 1.08% institutional ownership. This institutional participation level shows the confidence of professional money managers. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.