Rain Industries Limited (RAIN) AI Stock Analysis

• Market Cap: ₹47.85B
• Dividend Yield: 1.6%
• Average Volume (3M): 46.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 3.30%
• EPS Growth: 91.30%
• Country: IN
• Employees: 2,394
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 3.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹141.00 ▲(13.30% Upside)

The score is held back primarily by deteriorating financial performance (declining revenue, net losses, and high leverage) despite positive operating cash flow. Technicals are supportive due to a strong trend above major moving averages, but momentum looks overheated (high RSI/Stoch). Valuation is weak because the company is loss-making (negative P/E) and the dividend yield is modest.

Positive Factors

Operating Cash Flow

Strong operating cash flow indicates robust core business operations, providing liquidity for investments and debt servicing, crucial for long-term stability.

Diversified Revenue Streams

Diversified revenue streams across key industrial sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Industry Partnerships

Strategic partnerships ensure stable demand and market access, supporting revenue stability and competitive positioning in core markets.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting flexibility in downturns and increasing vulnerability to interest rate hikes.

Declining Revenue

Declining revenue suggests weakening market position or demand, which could impact long-term growth prospects and profitability.

Negative Net Income

Sustained net losses indicate operational inefficiencies and potential challenges in achieving profitability, affecting investor confidence and financial health.

Rain Industries Limited Business Overview & Revenue Model

Company Description

Rain Industries Limited, together with its subsidiaries, manufactures and sells carbon, cement, and advanced materials products in India and internationally. The company operates through Carbon, Advanced Materials, and Cement segments. It offers calcined petroleum coke, coal tar pitch, and green petroleum coke, as well as other derivatives of coal tar distillation, including carbon black oil, creosote oil, naphthalene, and other aromatic oils; naphthalene derivatives comprising phthalic anhydride, polynaphthalene sulfonates, and modifiers; petrochemical intermediates, such as benzene, toluene, and xylene; hydrocarbon resins, coal tar-based resins, colorless resins, and phenolics; and engineered products, including binders and pavement sealers, as well as superplasticizers. The company also engages in the co-generation of energy. In addition, it produces and sells ordinary Portland and Portland pozzolana cement under the Priya Cement brand. The company was formerly known as Rain Commodities Limited and changed its name to Rain Industries Limited in July 2013. Rain Industries Limited was incorporated in 1974 and is headquartered in Hyderabad, India.

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 faces significant financial challenges with declining revenue, negative profitability, and high leverage. While the company maintains a solid operating cash flow, its declining free cash flow and large debt burden pose risks. The balance sheet shows moderate equity levels, but the financial health is adversely affected by consistent net losses.

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	99.78B	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: Positive
• Last Price: 124.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAIN, the sentiment is Positive. The current price of 124.45 is below the 20-day moving average (MA) of 133.18, above the 50-day MA of 122.86, and below the 200-day MA of 137.54, indicating a bullish trend. The MACD of 8.61 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 40.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAIN.

Rain Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BALAMINES	69 Neutral	₹37.71B	25.86	―	0.97%	-10.76%	-27.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMMPFAUDLR	61 Neutral	₹46.29B	68.98	―	0.19%	3.69%	-36.27%
GUJALKALI	59 Neutral	₹35.11B	23,436.27	―	3.11%	10.35%	―
HIKAL	58 Neutral	₹26.57B	263.03	―	0.58%	-6.72%	-86.26%
RAIN	54 Neutral	₹47.85B	-36.14	―	1.60%	3.30%	91.30%
LXCHEM	51 Neutral	₹42.07B	50.38	―	0.29%	-2.93%	-37.94%

Rain Industries Limited Corporate Events

Rain Industries Says Recent Share Price Surge Is Market-Driven, No Undisclosed Developments

Rain Industries Limited has responded to queries from stock exchange surveillance departments regarding a significant recent movement in its share price, stating that it has been complying with SEBI disclosure norms and has already notified exchanges of all material events, including the scheduled board meeting on February 27, 2026 to approve audited financial results for the year ended December 31, 2025. The company said it is not aware of any undisclosed or impending price-sensitive information that could explain the stock’s volatility, asserting that the recent price movement is entirely market-driven and reiterating its commitment to prompt and transparent disclosures to safeguard investor interests.

Rain Industries Limited Releases Q3 2025 Financial Commentary

Rain Industries Limited has released its management commentary on the un-audited financial results for the third quarter of 2025. The company addressed questions from investors and analysts regarding recent industry developments and their potential impact on the company’s performance. The management highlighted that the financial results reflect the company’s strategic directions and market trends, though they are subject to risks and uncertainties.

Rain Industries and Northern Graphite Secure Funding for Battery Material Innovation

Rain Industries Limited announced that its subsidiary, Rain Carbon Canada Inc., in collaboration with Northern Graphite Corporation, has secured funding of up to C$860,000 under the Canada-Germany Collaborative Industrial Research and Development Program. The 24-month project, with a total cost of $2.2 million, aims to transform natural graphite processing by-products into battery-grade materials, enhancing the supply chain for energy storage. This initiative is expected to position both companies as competitive players in the Western energy storage market by maximizing yield, reducing waste, and minimizing the carbon footprint.

Rain Industries Subsidiary Partners for Sustainable Battery Material Development

Rain Carbon Canada Inc., a subsidiary of Rain Industries Limited, has partnered with Green Graphite Technologies Inc. to develop sustainable graphite anode active materials for lithium-ion batteries. This collaboration, supported by a grant from Next Generation Manufacturing Canada, aims to create a circular supply chain for battery materials, supporting Canada’s transition to a zero-emission future. The initiative is expected to enhance production efficiency, reduce environmental impact, and contribute to the growth of the Canadian battery supply chain by 2030.