Rain Industries Limited (RAIN) AI Stock Analysis

• Market Cap: ₹42.38B
• Dividend Yield: 1.59%
• Average Volume (3M): 46.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -1.53%
• EPS Growth: 70.86%
• Country: IN
• Employees: 2,394
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.80
• Shares Outstanding: 336,345,670
• 10 Day Avg. Volume: 39,362
• 30 Day Avg. Volume: 46,046
• PEG Ratio: 0.25
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 4.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹147.00
• Price Target Upside: 16.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ₹147.00 ▲(16.67% Upside)

Rain Industries' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue and negative profitability. Technical analysis indicates weak momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively suggest a challenging outlook for the stock.

Rain Industries Limited Business Overview & Revenue Model

Company Description

Rain Industries Limited (RAIN) is a diversified company with a strong presence in the manufacturing of various products across sectors including chemicals, cement, and carbon products. The company operates several subsidiaries and joint ventures, focusing on producing advanced materials that cater to industries such as construction, automotive, and manufacturing. Rain Industries is known for its commitment to sustainability and innovation, offering a range of products including calcined petroleum coke, coal tar pitch, and various specialty chemicals.

How the Company Makes Money

Rain Industries generates revenue through multiple key streams. The primary source is the sale of its carbon products, particularly calcined petroleum coke and coal tar pitch, which are essential raw materials in the aluminum and steel industries. Additionally, the company earns revenue from its specialty chemicals division, which produces a variety of chemical intermediates and performance chemicals used in various applications. The cement segment also contributes to the revenue through the production and sale of cement and related products. Rain Industries has established significant partnerships with major players in the aluminum and steel sectors, ensuring a stable demand for its products. Furthermore, the company's focus on research and development enables it to innovate and expand its product offerings, enhancing its competitive edge and revenue potential.

Rain Industries Limited Financial Statement Overview

Summary

Rain Industries is facing significant financial challenges, with declining revenue and negative profitability. The high debt-to-equity ratio and negative return on equity further highlight financial instability. Despite strong operating cash flow, the decrease in free cash flow and high leverage are concerning.

Income Statement

Rain Industries has seen a decline in revenue and net income over recent years, with total revenue decreasing from 209 billion in 2022 to 153 billion in 2024. The net income turned negative in 2023 and 2024, which is a significant concern. The gross profit margin was 42.4% in 2024, and the EBIT margin was 2.9%, indicating reduced operational efficiency. These metrics suggest challenges in maintaining profitability.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, with total debt being 128% of stockholders' equity in 2024. The equity ratio stands at 35%, showing a moderate level of financial stability. However, the high leverage could pose risks if earnings do not improve. The return on equity has been negative due to net losses, indicating poor shareholder returns.

Cash Flow

The cash flow statement shows a strong operating cash flow, amounting to 19 billion in 2024, but free cash flow has decreased from 24.7 billion in 2023 to 12.9 billion in 2024. This reduction in free cash flow suggests challenges in maintaining cash reserves for investments and debt repayments. The operating cash flow to net income ratio is high, but this is largely due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.79B	152.67B	180.52B	209.06B	143.70B	103.88B
Gross Profit	55.93B	27.21B	31.01B	74.67B	56.47B	47.58B
EBITDA	17.58B	15.22B	11.11B	36.27B	25.53B	21.32B
Net Income	-4.18B	-5.64B	-9.38B	14.39B	5.80B	5.58B
Balance Sheet
Total Assets	204.99B	189.37B	200.09B	221.73B	186.52B	182.81B
Cash, Cash Equivalents and Short-Term Investments	16.21B	19.11B	21.82B	14.83B	13.55B	17.78B
Total Debt	97.49B	84.94B	86.90B	97.31B	84.89B	88.59B
Total Liabilities	131.67B	121.12B	122.43B	133.90B	122.86B	125.76B
Stockholders Equity	70.26B	66.38B	73.43B	84.27B	61.09B	55.33B
Cash Flow
Free Cash Flow	0.00	12.90B	24.68B	3.67B	2.86B	7.42B
Operating Cash Flow	0.00	19.43B	30.63B	10.36B	8.34B	18.23B
Investing Cash Flow	0.00	-2.12B	-6.96B	-6.63B	-5.27B	-7.72B
Financing Cash Flow	0.00	-17.71B	-21.15B	-3.96B	-7.40B	-6.00B

Rain Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAIN, the sentiment is Negative. The current price of 126 is below the 20-day moving average (MA) of 131.44, below the 50-day MA of 139.76, and below the 200-day MA of 142.84, indicating a bearish trend. The MACD of -3.26 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 17.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAIN.

Rain Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BALAMINES	59 Neutral	₹44.15B	29.00	―	0.81%	-12.28%	-22.10%
GMMPFAUDLR	55 Neutral	₹47.98B	111.73	―	0.28%	-3.36%	-73.03%
GUJALKALI	55 Neutral	₹40.18B	―	―	2.89%	8.51%	84.67%
HIKAL	55 Neutral	₹29.60B	46.77	―	0.58%	1.67%	-6.61%
LXCHEM	53 Neutral	₹57.55B	57.19	―	0.25%	3.62%	-14.41%
RAIN	47 Neutral	₹42.38B	―	―	1.59%	-1.53%	70.86%