Presentation Q4 2024.
Page 4 - 9
2 Likes
Are we at stage where trigger points are in place?
How do you look at company now?
it seemed so for long time now, not excited so no comments as of now… ICICI have been increasing stake at down cycle is bit assuring, lets see if management do something, may be another 2 qtr wait is the last option for retail investors,
1 Like
Yeah, I’ve been stuck here for some time now. There has been a tremendous drawdown. This was the biggest investing mistake I have made in the last five years. It looked optically cheap, so I got caught.
They need to sell the cement division. Great prices are available. Take the money, reduce debt, and focus on the core.
3 Likes
cement business most likely of more sentimental to their family, I don’t think they will ever sell it…
1 Like
With miniscule dividend,the promoter does not have any large cash flow to buy stocks from the market. Nor does the company has any spare cash to buyback shares. the promoter last bought shares during the Covid Crash at around Rs.40 levels. They have bought some only after 5 years. Maybe sign of something to come. Disc-holding from last 5 years
2 Likes
They are based on Cement, all else is cash and extra type. For the family, Cement is bread and butter, that money and borrowing they are financially rotating in foreign businesses
They do not look “money rotating” type.
Impact of this news on RainInd?
well nothing is cooking …just the promoter picking up a few more shares of Rain.
1 Like
please if anyone can explain - what will be the impact of this in short and long term.
The recent implementation of Trump’s 25% tariffs on all steel and aluminum imports is likely to have both direct and indirect impacts on Rain Industries Ltd:
- Increased competition in global markets: The tariffs will likely lead to increased competition and oversupply in other steel-producing markets, which could pose challenges for Indian steel producers like Rain Industries in exporting their products1.
- Potential decline in demand: As the tariffs are expected to raise costs for U.S. manufacturers of cars, solar panels, and other products3, there might be a decrease in overall demand for steel and aluminum, potentially affecting Rain Industries’ export volumes.
- Price pressures: The tariffs could lead to price fluctuations in the global steel and aluminum markets, which may impact Rain Industries’ pricing strategies and profit margins2.
- Impact on raw material availability: Rain Industries’ carbon segment, which contributes to 66% of total revenue and 73% of operating profits, is highly dependent on the steel industry for raw materials like coal tar6. The tariffs might affect the availability and cost of these raw materials if there are significant changes in global steel production patterns.
- Aluminium industry effects: The company’s performance is also linked to the aluminum industry6. Any disruptions or changes in the global aluminum market due to these tariffs could indirectly affect Rain Industries’ business, particularly in its Carbon segment.
- Potential for market realignment: As the U.S. market becomes less accessible due to tariffs, Rain Industries may need to explore new markets or strengthen its position in existing ones to compensate for any potential loss in U.S.-related business.
While the direct impact on Rain Industries Ltd may be limited due to its relatively small export volume to the U.S.1, the company will need to carefully navigate the changing global trade dynamics and potential shifts in steel and aluminum markets to mitigate any negative effects on its business operations.
2 Likes
This is grok’s response for my question “Will the Trump US tariffs be benefecial for rain industries ?”
1 Like
The company seems to be trying best but the raw material GPC demand increase it putting pressure on CPC side although volumes are ramping up.
Cement business faced challenges last year due to consolidation, but the lower end companies (like Rain) might see persistent pricing issue compared to tier 1 players.
Internationally too raw material & pricing pressure exists.
I bought it due to expectation of cement business sale, paying down debt & focusing on core business where it can increase margin & utilisations. But the situations prevailing dont seem to align for company. Still invested but might exit if I find better opportunity as the conviction has slightly decreased due to lack of information & elevated debt levels which company is at & continously refinancing the new debt to repay the old ones
2 Likes
Important observations with SHP, retail investors now at 2 year low,most have given up on the stock. Had it not been the storification by Mr. Pabarai,nobody would have known this debt guzzler. Disc- bag holder for last 4 years,20% down from cost.
1 Like
Rain Ind has come out with encouraging numbers pls refer to link above
2 Likes
Results are so much positive compared to previous results, why still share is not performing, please can anyone can comment on the results and future .
1 Like