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Rain Industries (BOM:500339) Net-Net Working Capital : ₹-216.09 (As of Dec. 2023)


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What is Rain Industries Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Rain Industries's Net-Net Working Capital for the quarter that ended in Dec. 2023 was ₹-216.09.

The industry rank for Rain Industries's Net-Net Working Capital or its related term are showing as below:

BOM:500339's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 6.875
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Rain Industries Net-Net Working Capital Historical Data

The historical data trend for Rain Industries's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Rain Industries Net-Net Working Capital Chart

Rain Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -249.97 -278.23 -257.89 -241.89 -216.09

Rain Industries Semi-Annual Data
Mar05 Mar06 Mar07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -249.97 -278.23 -257.89 -241.89 -216.09

Competitive Comparison of Rain Industries's Net-Net Working Capital

For the Chemicals subindustry, Rain Industries's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rain Industries's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Rain Industries's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Rain Industries's Price-to-Net-Net-Working-Capital falls into.



Rain Industries Net-Net Working Capital Calculation

Rain Industries's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(21824.56+0.75 * 21701+0.5 * 31764.67-122434.53
-0-4229.04)/336.346
=-216.09

Rain Industries's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(21824.56+0.75 * 21701+0.5 * 31764.67-122434.53
-0-4229.04)/336.346
=-216.09

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Rain Industries  (BOM:500339) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Rain Industries Net-Net Working Capital Related Terms

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Rain Industries (BOM:500339) Business Description

Traded in Other Exchanges
Address
34, Srinagar Colony, Rain Center, Hyderabad, TG, IND, 500073
Rain Industries Ltd engages in the production of cement and other related products. The group operates through three segments namely Carbon Products, Advanced Materials, and Cement. The product portfolio of the group consists of Calcined Petroleum Coke, Green Petroleum Coke, Coal Tar Pitch, Co-generated Energy and other derivatives of coal tar distillation. In addition, it also focuses on the downstream operations of coal tar distillation and modifiers and is also involved in the manufacture and sale of cement. Geographically, the business of the firm is spread across the region of Europe, the United States, North America, Asia, and others.

Rain Industries (BOM:500339) Headlines

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