Rane Engine Valve Limited Stock Research

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Rane Engine Valve Limited Detail

Rane Engine Valve Limited is in portfolio of Nemish Shah. He is one of the top investors in India. The company belongs to Auto Ancillary sector. 

As per the Company website it is Rane Group of Company. It manufactures valves and valve train components for various engine applications. It has market leader position in India. It has five manufacturing locations Chennai, Hyderabad, Trichy, Bengaluru. Note it has two plants in Hyderabad.

The product from the Company find applications in different industries like Marine applications, Locomotives, Diesel Engines, Battle tanks, tractors and Automobile Industry.

It has Clientele spread across Europe, North America and the Far Eastern markets including the best known brands such as Volkswagen ,BMW, Deutz ,Volvo, Progress Rail , MTU and Yamaha.

It is also preferred supplier to Domestic OEMs like HMCL, HMSI, Ashok Leyland, Daimler, John Deere, Hyundai, etc.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Rane Engine Valve Limited Stock Performance

The stock is recently listed on exchanges. It choose bad time to get listed. It got listed at listing price of 147 in year 2008.After global crisis panic the stock recovered and touched 300 mark. But from year 2010 to 2014 it suffered badly and stock was on constant decline path.

Like most Auto Ancillary Companies the stock got boost in year 2014 and afterwards during the bullish run of the Nifty. The stock touched past 600 in that bull run giving handsome return to investors investing in 2014 period.

If you leave 2010 to 2014 period it has performed well. The dividend yield at current market price is also decent.

Rane Engine Valve Limited My Opinion

Rane Engine Valve Limited is a Auto Ancillary sector Company. The products can be used in different industries as well but I am clubbing it under Auto Ancillary sector as most websites use the same grouping for this Company.

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Valve is essential part of moving machines as it is used to control movement or flow. This is one auto component which will not get impacted by transition from Petrol and Diesel vehicle to Electric vehicle.

So you should not be worried about disruption impacting this Company. There are few companies which may not get impacted by transition. It is one of them.

Auto Ancillary is good sector. Auto Sales in India will have some quiet period but it is far from saturated. There will be decent demand in future both of two wheeler and four wheeler. So companies catering Auto sector will have growth. It also caters other sectors like Railways and all so it will have added revenue stream from those industries.

I am already invested in Auto Ancillary sector and as of now not willing to increase my exposure. I will be evaluating this Company and adding it to my watch list.

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In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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