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Rane (Madras) Limited
(RML)
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Rating:62Neutral
Price Target:
₹1,250.00
▲(10.60% Upside)
Action:Reiterated
Date:09/08/26
The score is primarily supported by improved financial performance (earnings recovery and lower leverage), but is held back by inconsistent cash generation with FY2026 free cash flow returning negative. Technically, the stock has strong momentum above all major moving averages, while valuation looks demanding with a ~30x P/E and only a modest dividend yield.
Positive Factors
Revenue Recovery
The strong FY2026 revenue rebound indicates improving demand and scale across RML’s automotive component business. If sustained through OEM programs and aftermarket activity, higher volume can support better capacity utilization and provide a durable foundation for earnings growth.
Negative Factors
Inconsistent Free Cash Flow
Negative FY2026 free cash flow indicates that accounting earnings are not consistently converting into cash available for reinvestment or debt reduction. Repeated variability can constrain self-funded growth and make capital expenditure or working-capital requirements more dependent on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The strong FY2026 revenue rebound indicates improving demand and scale across RML’s automotive component business. If sustained through OEM programs and aftermarket activity, higher volume can support better capacity utilization and provide a durable foundation for earnings growth.
Read all positive factors
Rane (Madras) Limited (RML) vs. iShares MSCI India ETF (INDA)
Market Cap
₹32.60B
Dividend Yield1.36%
Average Volume (3M)2.43K
Price to Earnings (P/E)27.4
Beta (1Y)1.66
Revenue Growth42.06%
EPS Growth323.98%
CountryIN
Employees2,631
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)43.07
Shares Outstanding27,637,136
10 Day Avg. Volume1,060
30 Day Avg. Volume2,434
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.28
Price to Sales (P/S)0.44
P/FCF Ratio-63.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rane (Madras) Limited Business Overview & Revenue Model
Company Description
Rane (Madras) Limited (RML) is an Indian automotive components producer that operates in both domestic and international markets. Its diverse product portfolio includes steering gears, steering and suspension linkage products, and high-precision a...
How the Company Makes Money
RML makes money by manufacturing and selling automotive components, with revenue primarily driven by (1) OEM supply programs and (2) aftermarket/spares sales, where applicable.
1) OEM (original equipment) sales: The core revenue stream comes from...
Rane (Madras) Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.24B | 38.63B | 34.06B | 34.63B | 23.54B | 17.42B |
| Gross Profit | 11.11B | 9.17B | 8.41B | 6.46B | 6.87B | 6.14B |
| EBITDA | 3.61B | 3.52B | 2.85B | 456.30M | 1.88B | 1.27B |
| Net Income | 1.19B | 1.07B | 376.50M | 30.20M | 300.20M | 106.60M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 25.21B | 22.69B | 13.69B | 13.49B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 461.80M | 472.40M | 432.70M | 383.90M | 284.80M | 128.50M |
| Total Debt | 0.00 | 7.52B | 8.13B | 7.28B | 6.68B | 5.85B |
| Total Liabilities | -7.51B | 17.70B | 15.98B | 11.13B | 11.07B | 10.02B |
| Stockholders Equity | 7.51B | 7.51B | 6.71B | 2.56B | 2.42B | 2.28B |
Cash Flow | ||||||
| Free Cash Flow | -697.60M | -270.30M | 637.00M | -171.00M | -206.80M | -1.06B |
| Operating Cash Flow | 237.80M | 1.64B | 2.48B | 1.20B | 876.40M | -56.50M |
| Investing Cash Flow | 230.30M | 94.00M | -1.53B | -1.57B | -1.06B | -1.24B |
| Financing Cash Flow | -281.40M | -1.50B | -1.02B | -553.60M | 351.20M | 1.34B |
Rane (Madras) Limited Technical Analysis
Neutral
1130.25
Price Trends
1252.73
Negative
1172.68
Positive
981.53
Positive
Market Momentum
-20.73
Positive
37.86
Neutral
18.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RML, the sentiment is Neutral. The current price of 1130.25 is below the 20-day moving average (MA) of 1299.26, below the 50-day MA of 1252.73, and above the 200-day MA of 981.53, indicating a neutral trend. The MACD of -20.73 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RML.
Rane (Madras) Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹49.92B | 21.28 | ― | 1.20% | 15.89% | 29.90% | |
72 Outperform | ₹42.33B | 28.69 | ― | 2.81% | 14.37% | 70.31% | |
70 Outperform | ₹313.06B | 32.39 | ― | 0.52% | 29.35% | 12.93% | |
67 Neutral | ₹23.83B | 13.71 | ― | 2.02% | 6.30% | 10.84% | |
62 Neutral | ₹32.60B | 27.36 | ― | 1.36% | 42.06% | 323.98% | |
59 Neutral | ₹24.05B | 16.55 | ― | 0.54% | 23.06% | 38.22% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:RML
Rane (Madras) Limited
1,179.60
369.26
45.57%
IN:AUTOAXLES
Automotive Axles Limited
1,577.00
-133.23
-7.79%
IN:ENDURANCE
Endurance Technologies Ltd.
2,225.60
-682.52
-23.47%
IN:GNA
GNA Axles Ltd
560.20
248.64
79.80%
IN:JAMNAAUTO
Jamna Auto Industries Limited
124.80
31.91
34.35%
IN:NRBBEARING
NRB Bearings Ltd.
436.75
179.00
69.45%
Rane (Madras) Limited Corporate Events
Rane (Madras) Posts Earnings Call Transcript, Affirms SEBI Compliance
Aug 27, 2026
Rane (Madras) Limited has notified stock exchanges that the transcript of its earnings conference call held on August 21, 2026 is now available in the investor information section of the company’s website. By publishing the call transcript a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.