Rain Industries Limited (RAIN) AI Stock Analysis

• Market Cap: ₹46.16B
• Dividend Yield: 1.44%
• Average Volume (3M): 178.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: -1.53%
• EPS Growth: 70.86%
• Country: IN
• Employees: 2,394
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals
• EPS (TTM): 1.80
• Shares Outstanding: 336,345,670
• 10 Day Avg. Volume: 68,833
• 30 Day Avg. Volume: 178,938
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 8.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ₹147.00 ▲(8.65% 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 globally diversified corporation with a primary focus on producing carbon products, advanced materials, and cement. The company operates through three key segments: Carbon, Advanced Materials, and Cement. In the Carbon segment, RAIN is one of the world's leading producers of calcined petroleum coke and coal tar pitch, which are crucial raw materials for aluminum, graphite, and titanium dioxide industries. The Advanced Materials segment focuses on the manufacture of specialty chemicals and resins, while the Cement segment primarily caters to the infrastructure sector in India.

How the Company Makes Money

Rain Industries Limited makes money through its diversified operations in three main segments. The Carbon segment is its largest revenue generator, driven by the production and sale of calcined petroleum coke and coal tar pitch, which are essential for aluminum production and serve as key materials for various industries. The Advanced Materials segment derives revenue from the production of specialty chemicals, including resins and modifiers, which are used in a wide range of industrial applications. The Cement segment contributes to the company's earnings by supplying cement to the construction and infrastructure sectors in India. Additionally, RAIN leverages its global presence and strategic partnerships to optimize its production processes, reduce costs, and enhance profitability, making it a significant player in its respective markets.

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	154.72B	153.74B	180.52B	209.06B	143.70B	103.88B
Gross Profit	54.38B	27.21B	30.68B	74.67B	56.47B	55.81B
EBITDA	15.29B	15.22B	11.11B	36.27B	25.53B	21.32B
Net Income	-5.56B	-5.64B	-9.38B	14.39B	5.80B	5.58B
Balance Sheet
Total Assets	0.00	189.37B	200.09B	221.73B	186.52B	182.81B
Cash, Cash Equivalents and Short-Term Investments	18.35B	19.11B	21.82B	14.83B	13.39B	17.78B
Total Debt	0.00	84.94B	86.90B	97.31B	84.89B	88.59B
Total Liabilities	-68.25B	121.12B	122.43B	133.90B	122.86B	125.76B
Stockholders Equity	68.25B	66.38B	73.43B	84.27B	61.09B	55.33B
Cash Flow
Free Cash Flow	-2.63B	12.90B	24.68B	3.67B	2.86B	7.42B
Operating Cash Flow	-1.13B	19.43B	30.63B	10.36B	8.34B	18.23B
Investing Cash Flow	-953.42M	-2.12B	-6.96B	-6.63B	-5.27B	-7.72B
Financing Cash Flow	314.21M	-17.71B	-21.15B	-3.96B	-7.40B	-6.00B

Rain Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.30
• 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 135.3 is below the 20-day moving average (MA) of 149.52, below the 50-day MA of 149.56, and below the 200-day MA of 147.70, indicating a bearish trend. The MACD of -4.07 indicates Positive momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.69 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	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
BALAMINES	59 Neutral	₹48.85B	32.50		0.72%	-12.28%	-22.10%
GUJALKALI	59 Neutral	₹43.17B	―		2.34%	8.51%	84.67%
GMMPFAUDLR	55 Neutral	₹53.28B	124.07		0.26%	-3.36%	-73.03%
HIKAL	55 Neutral	₹33.18B	52.42		0.54%	1.67%	-6.61%
LXCHEM	55 Neutral	₹59.38B	59.78		0.24%	3.62%	-14.41%
RAIN	47 Neutral	₹46.16B	―		1.44%	-1.53%	70.86%