The company has technical collaboration with Nisshinbo Brakes Inc., Japan for know-how in asbestos-free brake linings, disc pads & clutch facings. The company is almost debt free and has been maintaining a healthy dividend payout of 57.5%. Export sales grew 19% during the quarter and had 33% growth for the full year.
Cyborg Score Rationale
Profit of Rane Brake Lining is ₹44.75 Crs for TTM, showing strong profit growth trajectory. Latest PE of 12.94 and EV/EBITDA of 6.96 suggest attractive valuations compared to 3-year averages. Debt-free balance sheet with strong liquidity positions the company well.
Top Insights
FY24 total revenue was ₹663.0 Crore compared to ₹607.1 Crore in FY23, an increase of 9.2%, with EBITDA margin improving to 11.7% from 10.6%.
OE customer sales grew 18% while aftermarket sales grew 6%, showing broad-based demand across segments.
Company operates four manufacturing facilities at Chennai, Hyderabad, Puducherry and Trichy with renewable energy capacity of 4.2 MW.
Rane Brake Lining has grown at approximately 8.92% over the last 10 years compared to peer median growth of 5.0%.