Rane Brake Linings slides after strong debut on re-listing

Rane Brake Linings was trading at Rs 99.30 at 12:50 IST on BSE on its re-listing today (20^th June08).

On BSE, 16.23 lakh shares were traded in the counter. The stock hit a high of Rs 180 and a low of Rs 81 so far during the day. It debuted at Rs 180.

The automobile and railway ancillary maker has an equity capital of Rs 7.21 crore. Face value per share is Rs 10.

The current price of Rs 99.30 discounts its Q4 March 2008 annualised EPS of Rs 22.55, by a PE multiple of 4.4.

Rane Brake Lining, got re-listed after a gap of four months on the Bombay Stock Exchange on account of scheme of arrangement between Rane Engine Valves, Rane Brake Linings and Rane Holdings. Trading was suspended in the stock in February 2008, when the stock was trading at Rs 170-Rs 180 level.

In February 2008, Rane Holdings had informed the stock exchanges that at the final hearing held on 20 December 2007, the Madras High Court had sanctioned the composite scheme of demerger, merger and amalgamation between Rane Engine Valves, Rane Brake Linings, Techcons, Rane Brake Products and Rane Holdings.

The company reported a net profit of Rs 4.07 crore on sales of Rs 53.94 crore in Q4 March 2008.

Rane Brake Linings (RBL) is the leader in friction materials production in India. RBL produces asbestos andnon-asbestos brake linings, disc pads, clutch facings and railway brake blocks.