Rane (Madras) (BOM:532661) Risk Assessment

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What is Rane (Madras) Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Rane (Madras) is: High Risk: High uncertainty with risk-return tradeoff.

Competitive Comparison of Rane (Madras)'s Risk Assessment

For the Auto Parts subindustry, Rane (Madras)'s Risk Assessment, along with its competitors' market caps and Risk Assessment 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.

Rane (Madras)'s Risk Assessment Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Rane (Madras)'s Risk Assessment distribution charts can be found below:

* The bar in red indicates where Rane (Madras)'s Risk Assessment falls into.

Rane (Madras) (BOM:532661) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Rane (Madras) Risk Assessment Related Terms

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Rane (Madras) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Rane (Madras) Ltd (BOM:532661) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

RML:India

Address

154, Velachery Road, Ganapathi Buildings, Chennai, TN, IND, 600042

Website

https://www.ranegroup.com

Rane (Madras) Ltd provides components for the transportation industry. The company is a manufacturer of steering and suspension linkages products, steering gear products and other articles of aluminum die casting products. It operates through two divisions: the Steering and Linkages division and the Light Metal Castings division. The company's steering and linkages division manufactures manual steering gears, hydrostatic steering systems, and steering and suspension linkage products. Its Light Metal Castings division manufactures low-porosity, high-quality aluminum die-castings such as steering housings and engine case covers. Geographically, the company derives key revenue within India.

Rane (Madras) Headlines

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