RAIN INDUSTRIES LTD
CMP – 69.50
MARKET CAP – 2337cr
BOOK VALUE – 154
52wk HIGH/LOW – 129/45
5 Year HIGH/LOW – 475/25
FACE VALUE – 2
DIVIDEND YIELD – 1.45%
FY20 EPS – 15
Aggressive Buy – CMP
Safe Player Accmulate bwt – 50 to 60
Stock can Test 140 in next 12 to 18 months and can be 3x – Rs.210 in next 3 years.
On lower side any close BELOW 50 can Drag stock towards new 52wk LOWS.stock has made good Consolidation and base between 55 to 60 levels.
Rain inds has 3 main segment – Cpc Division, Cement & Speciality chemical.Rain inds is Largest manufacturer of CPC & CPT.It currently has 18 Plats in 8 countries.
Last 3 year sales Growth is around 12% and Compounded profit growth us around 24%
Main Products
Speciality Chemical,Carbon And cement
CARBON :
Consists of GPC: essential raw material to create CPC fr the final product which is ALUMINIUM, graphite, carbon blk…
Environment friendly & energy efficient Thanks to investment in flue- gas desulfurization plants (india/ usa).
From future this is really important as this kind of biz has to be highly eco friendly to avoid bans , restrictions, earth saving!
COAL TAR PITCH (CTP):
Is used as imp reducing agent n energy source to produce iron. Is used as binding fr aluminium ind carbon. Thr subsidaries are in … Belgium, Canada, Germany , Russia.
ADVANCED MATERIALS:
Production places: Germany, Netherlands, Canada.
RESINS:
Manufactures hydrocarbon used in coatings, rubber tyres, adhesives, printing inks+ colourless resins.
Produces phenolics used in leather treatment, electric wire n pharmaceuticals.
ENGINEERED PRODUCTS:
Innovative carbores & petrores used in LITHIUM ION BATTERIES, energy storage & petrochemical based pavement sealer.
PETROCHEMICAL:
Necessary fr pig- iron & steel production. Works as solvent fr inks n paints.
NAPHTHALENE:
Produces SUPERPLASTICIZERS used fr wallboard, ind n agricultural applications, produces surface modifiers, coating industrial floors, cable joints n water based adhesives.
INNOVATIVE DEVELOPMENT:
Demand has increased due to ecofriendly characteristics. The construction of hydrogenated hydrocarbon resins in Germany will produce WATER WHITE RESINS-
Changing Regulations :
Growing demand consumer n cmpny fr CLEANER AND SAFER RAW MATERIAL FR FOOD PACKAGING AND SANITARY PRODUCTS.
CEMENT
– Leading cement in South India
– production of ordinary & portland cement.
– ideal for construction industry : high rise bldgs, slabs, roofs…
Plus residential bldgs, dams, roads…
Again is ecofriendly- consumes less energy to manufacture, reduces PRODUCTION COSTS!
They practically have a diversified profile:
STRENGHTS:
– Leading producers carbon / chemical products
– Experienced Management
– Longterm benefit in demand growth of aluminium
– continuos products improvements
– eco- friendly energy thru waste heat recovery- RAIN is the only Calciner in the world with revenues frm waste heat revovery!
– Good relationship with suppliers n customers
– Diversified portfolio
– world class asset Base
– Completition of expansion projects in Belgium n Russia
– De- leveraging Balance Sheet
Few Negative points
GPC – green Petroleum Coke very important raw material that is imported from out.
Company will suffer if theres problem in supply demand of ths GPC
From this you can create CPC & final product aluminium.
Other manufacturers are : Hindalco, Vedanta & Nalco
Disc – All views expressed are personal and only for Educational and study purpose.consult your financial advisor before investing or taking any position based on above article.
WealthCreatures 