NOT A BUY RECOMMENDATION
RAIN INDUSTRIES~Hold
1️⃣Stock is Tdg @ 8.85xCY21 EPS and 2.60xEbidta
2️⃣Stock is quoting @ 6.65xCY22EEPS and 2.30xEbidta
3️⃣ Q4CY21~Rain prima facie has reported Loss of 74 Cr. _*However, Adj Net Profit is 94Cr*_
✅During the quarter PBT is 224 Cr . However Tax provision is 296 Cr out of which 196 Cr is Deferred Tax ( one time book entry which don't entail actual payment).
➡️ _*Hence after one off adjustment, Profit after Tax is 94 Cr and EPS ₹ 2.81*_
During the quarter, Operations were affected due to (a)cyclone in one of its facilities in USA (b) 195% rise in energy cost in Germany and delay in pass through of higher cost , Higher operating cost due to planned shutdown as HHCR plant had replacement of certain equipments for higher efficiency
4️⃣ CY21~Co achieved 14527 Cr sales and 2517 Cr Ebidta.
PAT stands at 756 Cr Vs 532 Cr
_*EPS ₹ 22.48 Vs ₹ 15.82*_
5️⃣▶️During the year, Rain incurred capex of $ 74 million
6️⃣✅ Rain can report ₹ 30 EPS for CY21 as no capex in current year and higher cost in Germany already passed on to customers
7️⃣ Strong management, great business of Global Scale.
➡️ Q4 was affected due to one time unforeseen happenings like cyclone. As can happen in any business, Investors should ignore Q4 hiccups and Rain will do considerably better due to robust demand from Aluminium industry ( Aluminium prices at 14 year high)