somen369pramanik

Looking good for swing

Long
NSE:RAIN   RAIN INDUSTRIES LTD
Rain Industries informs about
Stock investing requires careful analysis of financial data to find out the company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement. This can be time-consuming and cumbersome. An easier way to find out about a company's performance is to look at its financial ratios, which can help to make sense of the overwhelming amount of information that can be found in a company's financial statements.

Here are the few indispensable tools that should be a part of every investor’s research process.

PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Rain Industries has a PE ratio of 117.29 which is high and comparatively overvalued .

Share Price: - The current share price of Rain Industries is Rs 201.10. One can use valuation calculators of ticker to know if Rain Industries share price is undervalued or overvalued.

Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Rain Industries has ROA of 2.21 % which is a bad sign for future performance. (higher values are always desirable)

Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Rain Industries has a Current ratio of 0.68 .

Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Rain Industries has a ROE of 3.06 % .(higher is better)

Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. Rain Industries has a D/E ratio of 0.18 which means that the company has low proportion of debt in its capital.

Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. Rain Industries has an Inventory turnover ratio of 0 which shows that the management is inefficient in relation to its Inventory and working capital management.

Sales growth: - Rain Industries has reported revenue growth of 0.98 % which is poor in relation to its growth and performance.

Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Rain Industries for the current financial year is -17.05 %.

Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Rain Industries is Rs 1 and the yield is 0.50 %.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.