Want to see IN:RML full AI Analyst Report?
Top Page
Rane (Madras) Limited
(RML)
Select Model
Select Model
Rating:62Neutral
Price Target:
₹1,474.00
▲(30.41% 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 operating scale across RML’s automotive component business. If sustained, higher volumes can support better fixed-cost absorption, strengthen customer program economics, and provide a foundation for continued earnings recovery over the next several quarters.
Negative Factors
Thin and volatile margins
Despite the recent recovery, RML remains exposed to the challenge of converting automotive component revenue into durable profits. Thin margins provide limited protection against operating pressure, while the history of volatility and losses shows that earnings quality may remain sensitive to changes in business conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
The strong FY2026 revenue rebound indicates improving demand and operating scale across RML’s automotive component business. If sustained, higher volumes can support better fixed-cost absorption, strengthen customer program economics, and provide a foundation for continued earnings recovery over the next several quarters.
Read all positive factors
Rane (Madras) Limited (RML) vs. iShares MSCI India ETF (INDA)
Market Cap
₹38.39B
Dividend Yield1.18%
Average Volume (3M)6.73K
Price to Earnings (P/E)31.7
Beta (1Y)1.64
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. Volume12,791
30 Day Avg. Volume6,729
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
Positive
1130.25
Price Trends
1163.09
Positive
1034.80
Positive
897.27
Positive
Market Momentum
55.70
Negative
71.50
Negative
88.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RML, the sentiment is Positive. The current price of 1130.25 is below the 20-day moving average (MA) of 1163.94, below the 50-day MA of 1163.09, and above the 200-day MA of 897.27, indicating a bullish trend. The MACD of 55.70 indicates Negative momentum. The RSI at 71.50 is Negative, neither overbought nor oversold. The STOCH value of 88.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ₹51.58B | 22.00 | ― | 1.13% | 15.89% | 29.90% | |
74 Outperform | ₹23.80B | 17.52 | ― | 0.56% | 8.11% | 29.23% | |
72 Outperform | ₹47.43B | 31.86 | ― | 2.54% | 14.37% | 70.31% | |
70 Outperform | ₹384.52B | 39.97 | ― | 0.42% | 29.35% | 12.93% | |
67 Neutral | ₹25.15B | 14.38 | ― | 1.93% | 6.30% | 10.84% | |
62 Neutral | ₹38.39B | 31.68 | ― | 1.18% | 42.06% | 323.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:RML
Rane (Madras) Limited
1,362.95
522.59
62.19%
IN:AUTOAXLES
Automotive Axles Limited
1,654.20
-19.47
-1.16%
IN:ENDURANCE
Endurance Technologies Ltd.
2,754.35
-272.63
-9.01%
IN:GNA
GNA Axles Ltd
539.90
229.33
73.84%
IN:JAMNAAUTO
Jamna Auto Industries Limited
128.95
22.77
21.44%
IN:NRBBEARING
NRB Bearings Ltd.
483.95
207.37
74.97%
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...
Rane (Madras) Sets August 5 Virtual AGM, Proposes ₹16 Dividend and Board Reappointments
Jul 11, 2026
Rane (Madras) Limited has called its Twenty-Second Annual General Meeting for August 5, 2026, to be conducted via video conferencing and other audio-visual means, with Central Depository Services (India) Limited providing e-voting and virtual meet...
Rane (Madras) Dispatches Annual Report Web-Link Letters to Non-Email Shareholders
Jul 11, 2026
Rane (Madras) Limited has informed the stock exchanges that it is dispatching letters to shareholders whose email addresses are not registered, providing them with a web link to access the company’s annual report for FY 2025-26. The move is ...
Rane (Madras) Sets Virtual 22nd AGM with E-Voting Access
Jul 11, 2026
Rane (Madras) Limited has announced that its 22nd Annual General Meeting will be held on August 5, 2026 at 14:00 IST through video conferencing and other audio-visual means, with shareholders able to participate via an e-voting facility. The compa...
CRISIL Upgrades Rane (Madras) Credit Ratings on Rs 1,085 Crore Facilities
Jul 9, 2026
CRISIL Ratings has upgraded Rane (Madras) Limited’s long-term bank loan rating from CRISIL A+/Stable to CRISIL AA-/Stable and its short-term rating from CRISIL A1 to CRISIL A1+ for total facilities of Rs. 1,085 crore. The improved ratings si...
Rane (Madras) to Buy Hindustan Composites’ Friction Unit in ₹370 Crore Deal
Jun 30, 2026
Rane (Madras) Limited has signed a Business Transfer Agreement to acquire the friction business of Hindustan Composites Limited as a going concern on a slump sale basis for an enterprise value of about ₹370 crore, subject to customary approv...
Rane (Madras) to acquire Hindustan Composites’ friction business for Rs 370 crore
Jun 30, 2026
Rane (Madras) Limited has agreed to acquire the friction business of Hindustan Composites Limited as a going concern on a slump sale basis, for a lump-sum cash consideration of Rs 370 crore on a cash-free, debt-free basis. The deal, expected to cl...
Rane (Madras) to acquire Hindustan Composites’ friction business for Rs 370 crore
Jun 30, 2026
Rane (Madras) Limited has agreed to acquire the friction business of Hindustan Composites Limited as a going concern on a slump sale basis for a lump-sum consideration of Rs 370 crore, on a cash-free, debt-free basis. The transaction, expected to ...
Rane (Madras) Sets Board Meet and Trading Blackout for Q1 Results
Jun 29, 2026
Rane (Madras) Limited has scheduled a board meeting on August 5, 2026 to consider and approve its standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, in line with SEBI listing requirements. The company has ...
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.