Rain Industries Limited (RAIN) AI Stock Analysis

• Market Cap: ₹52.15B
• Dividend Yield: 1.6%
• Average Volume (3M): 46.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• 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: ₹168.00 ▲(34.99% Upside)

The score is primarily weighed down by deteriorating fundamentals (declining revenue, losses, and high leverage), partially offset by positive operating cash flow. Technicals are supportive with price above major moving averages and a positive MACD, but overbought signals (high RSI/Stoch) reduce confidence. Valuation remains weak due to negative earnings and only a modest dividend yield.

Positive Factors

Operating cash flow

Sustained positive operating cash flow (19B in 2024) indicates the core business generates real cash despite accounting losses. Over 2–6 months this supports working capital, supplier relationships and near-term debt servicing, giving management flexibility to stabilize operations and invest selectively.

High gross margins

A 42.4% gross margin in 2024 points to product-level pricing power and value-added processing in coal-tar and carbon products. High gross margins provide structural buffer against input cost swings and support margin recovery if sales volumes normalize, aiding long-term profitability potential.

Diverse industrial end markets and global footprint

Exposure to multiple heavy-industrial end markets and a global manufacturing/distribution footprint reduces single-market concentration risk. Durable institutional customer relationships in aluminum, steel and chemicals support repeat demand and long-term contract opportunities across economic cycles.

Negative Factors

Declining revenue and sustained losses

Material revenue decline and consecutive net losses erode operating scale and reinvestment capacity. Persisting top-line weakness undermines recovery prospects, increases funding needs for turnaround actions, and makes it harder to restore margins and creditor confidence over the medium term.

High leverage

Debt equal to about 128% of equity reflects elevated financial leverage. This magnifies earnings volatility, raises interest obligations, and limits strategic flexibility. If earnings remain depressed, high leverage increases refinancing and covenant risks and constrains capex and growth investments.

Declining free cash flow

A sharp drop in free cash flow reduces internal funding for capex, product upgrades and debt reduction. Over a multi-month horizon, weaker FCF restricts the company’s ability to shift toward higher-margin product mixes, pursue strategic investments, or absorb prolonged industry downturns without external financing.

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

Weak profitability trends drive the score: revenue declined materially (209B in 2022 to 153B in 2024) and net income was negative in 2023–2024. Leverage is elevated (debt ~128% of equity), increasing risk. Offsetting factors include positive operating cash flow (19B in 2024) though free cash flow fell (24.7B in 2023 to 12.9B in 2024).

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 144.34, below the 50-day MA of 128.26, and below the 200-day MA of 138.04, indicating a bullish trend. The MACD of 5.76 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.61 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	₹36.22B	25.14	―	0.97%	-10.76%	-27.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMMPFAUDLR	61 Neutral	₹43.79B	65.25	―	0.19%	3.69%	-36.27%
GUJALKALI	59 Neutral	₹33.48B	22,350.49	―	3.11%	10.35%	―
HIKAL	58 Neutral	₹23.79B	235.56	―	0.58%	-6.72%	-86.26%
RAIN	54 Neutral	₹52.15B	-39.67	―	1.60%	3.30%	91.30%
LXCHEM	51 Neutral	₹39.33B	49.41	―	0.29%	-2.93%	-37.94%

Rain Industries Limited Corporate Events

Rain Industries Faces Exchange Query After Surge in Trading Volumes

The stock of Rain Industries Limited has seen a significant surge in trading volumes, drawing heightened attention in the market. In response, the stock exchange has sought clarification from the company to ensure investors have up-to-date, relevant information and to safeguard investor interests, with the market now awaiting the company’s formal reply.

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.