Rane (Madras) Limited (RML) AI Stock Analysis

• Market Cap: ₹22.07B
• Dividend Yield: 1.07%
• Average Volume (3M): 800.00
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.43
• Revenue Growth: 54.17%
• EPS Growth: 1117.99%
• Country: IN
• Employees: 1,188
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 7.77
• Shares Outstanding: 27,637,136
• 10 Day Avg. Volume: 603
• 30 Day Avg. Volume: 800
• PEG Ratio: -0.87
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 16.14
• 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: 57 Neutral
• Price Target: ₹856.00 ▲(1.03% Upside)

Rane (Madras) Limited's financial performance is a key strength, with improvements in revenue and profitability. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company has demonstrated strong revenue growth, indicating robust demand for its products and a solid market position, which supports long-term business sustainability.

Cash Flow Management

Efficient cash flow management enhances financial stability and provides the company with the flexibility to invest in growth opportunities and manage debt effectively.

Profitability Transition

Transitioning to profitability indicates improved operational efficiency and cost management, which can lead to sustainable growth and increased shareholder value over time.

Negative Factors

Leverage Concerns

High leverage can strain financial resources and limit the company's ability to invest in growth, posing risks to long-term financial health and stability.

Earnings Volatility

Moderate margins suggest that there is room for improvement in operational efficiency, and volatility in earnings could impact long-term profitability and investor confidence.

EPS Decline

A decline in EPS growth indicates challenges in generating higher earnings per share, which could affect investor perception and the company's ability to attract investment for future growth.

Rane (Madras) Limited Business Overview & Revenue Model

Company Description

Rane (Madras) Limited manufactures and sells auto components in India and internationally. It offers steering gears; steering and suspension linkage products; and high precision aluminum die castings. The company markets and sells its products to the manufacturers of passenger cars, utility vehicles, and farm tractors. It also exports its products. The company was founded in 1960 and is headquartered in Chennai, India. Rane (Madras) Limited is a subsidiary of Rane Holdings Limited.

How the Company Makes Money

Rane (Madras) Limited generates revenue primarily through the manufacturing and sale of automotive components. Its key revenue streams include the sale of steering and suspension systems to original equipment manufacturers (OEMs) and aftermarket segments. The company has established significant partnerships with major automotive manufacturers, which helps secure long-term contracts and a steady flow of orders. Additionally, RML focuses on research and development to innovate its product offerings, which enhances its competitive edge and allows for premium pricing. The company's geographical diversification into international markets further contributes to its earnings, as it capitalizes on the growing global demand for automotive components.

Rane (Madras) Limited Financial Statement Overview

Summary

Rane (Madras) Limited shows positive financial momentum with improved revenue and profit margins. The transition to profitability is notable, but leverage remains a concern with a debt-to-equity ratio of 1.21. Cash flow management is strong, indicating a trajectory towards financial stability.

Income Statement

Rane (Madras) Limited has demonstrated strong revenue growth from the previous year, with a significant increase in gross profit margin from 29.3% to 24.7%. The net profit margin improved from a negative to 1.1%, indicating a transition to profitability. However, EBIT and EBITDA margins remain moderate at 4.4% and 8.4%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio stands at 1.21, indicating a moderate level of leverage. The return on equity has improved to 5.6%, reflecting better profitability. The equity ratio is at 29.6%, showing a stable capital structure, but with potential risks due to high debt levels.

Cash Flow

Rane (Madras) Limited has shown a strong improvement in operating cash flow, with a positive free cash flow indicating better cash management. The operating cash flow to net income ratio is high, demonstrating efficient cash generation relative to earnings. Despite this, the free cash flow growth rate suggests volatility in capital expenditures and cash reserves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.33B	34.06B	34.63B	23.54B	17.42B	12.59B
Gross Profit	9.76B	8.41B	6.46B	6.87B	6.14B	3.86B
EBITDA	2.25B	2.85B	456.30M	1.88B	1.27B	363.20M
Net Income	241.50M	376.50M	30.20M	300.20M	106.60M	-611.40M
Balance Sheet
Total Assets	0.00	22.69B	13.69B	13.49B	12.30B	10.32B
Cash, Cash Equivalents and Short-Term Investments	337.80M	432.70M	383.90M	284.80M	128.50M	124.70M
Total Debt	0.00	8.13B	7.28B	6.68B	5.85B	4.70B
Total Liabilities	-6.71B	15.98B	11.13B	11.07B	10.02B	8.50B
Stockholders Equity	6.71B	6.71B	2.56B	2.42B	2.28B	1.82B
Cash Flow
Free Cash Flow	0.00	637.00M	-171.00M	-206.80M	-1.06B	-346.80M
Operating Cash Flow	0.00	2.48B	1.20B	876.40M	-56.50M	459.10M
Investing Cash Flow	0.00	-1.53B	-1.57B	-1.06B	-1.24B	-799.70M
Financing Cash Flow	0.00	-1.02B	-553.60M	351.20M	1.34B	210.60M

Rane (Madras) Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 847.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 847.25 is above the 20-day moving average (MA) of 778.67, above the 50-day MA of 785.21, and above the 200-day MA of 811.68, indicating a neutral trend. The MACD of 12.54 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REMSONSIND	65 Neutral	₹4.07B	25.03	―	0.24%	28.08%	3.19%
JAYBARMARU	63 Neutral	₹10.46B	15.81	―	0.74%	4.76%	150.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TALBROAUTO	61 Neutral	₹16.64B	17.39	―	0.32%	0.74%	-17.90%
PRITIKAUTO	58 Neutral	₹2.31B	13.95	―	―	26.03%	-10.27%
RML	57 Neutral	₹22.07B	43.52	―	1.07%	54.17%	1117.99%
SHIVAMAUTO	47 Neutral	₹2.97B	-5.15	―	―	-11.18%	-22.17%

Rane (Madras) Limited Corporate Events

CRISIL Reaffirms Credit Ratings on Rane (Madras) as Bank Facilities Are Enhanced

Rane (Madras) Limited has announced that CRISIL has reaffirmed its credit ratings on the company’s enhanced bank loan facilities, which have increased to Rs 1,085 crore from Rs 910.51 crore. The long-term bank facilities remain rated at ‘CRISIL A+/Stable’, while the short-term facilities continue at ‘CRISIL A1’, indicating that the rating agency sees no deterioration in the company’s credit profile despite the higher sanctioned debt limits. The reaffirmation supports the company’s financial standing with lenders, helps maintain access to bank funding on competitive terms, and signals stability in its creditworthiness to investors and other stakeholders.