Rane (Madras) Limited (RML) AI Stock Analysis

• Market Cap: ₹22.13B
• Dividend Yield: 1%
• Average Volume (3M): 2.15K
• Price to Earnings (P/E): 78.8
• Beta (1Y): 1.44
• Revenue Growth: 30.38%
• EPS Growth: -20.93%
• Country: IN
• Employees: 1,188
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 6.71
• Shares Outstanding: 27,637,136
• 10 Day Avg. Volume: 1,579
• 30 Day Avg. Volume: 2,155
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹919.00
• Price Target Upside: 15.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ₹919.00 ▲(15.32% Upside)

Rane (Madras) Limited displays strong financial performance with revenue growth and improving profit margins, but faces challenges with high leverage and valuation concerns. The technical indicators point to neutral market sentiment, lacking strong momentum either way. The overall score reflects these mixed signals, emphasizing financial performance and valuation as key factors.

Rane (Madras) Limited Business Overview & Revenue Model

Company Description

Rane (Madras) Limited (RML) is a leading manufacturer in the automotive components sector, primarily focused on steering and suspension systems. The company is part of the larger Rane Group, which is renowned for its high-quality automotive parts. RML's core products include manual steering gears, steering and suspension linkage products, and other related components, catering to both domestic and international markets.

How the Company Makes Money

Rane (Madras) Limited generates revenue through the manufacturing and sale of its steering and suspension systems. The primary revenue streams include sales to original equipment manufacturers (OEMs) in the automotive industry, as well as supplying components to the aftermarket segment. The company leverages long-term partnerships with major automobile manufacturers, ensuring a steady demand for its products. Additionally, RML invests in research and development to innovate and maintain a competitive edge, which supports its revenue growth. Export sales also contribute to the company's earnings, expanding its market presence beyond India.

Rane (Madras) Limited Financial Statement Overview

Summary

Rane (Madras) Limited has demonstrated strong revenue growth with an improved net profit margin, marking a transition to profitability. While the company shows effective cash management, leverage remains a concern with a high debt-to-equity ratio.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.91B	34.06B	22.01B	23.14B	17.20B	12.47B
Gross Profit	6.09B	8.41B	6.46B	6.87B	5.12B	3.86B
EBITDA	1.43B	2.85B	456.30M	1.88B	1.27B	363.20M
Net Income	-68.60M	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	225.40M	347.90M	361.60M	293.70M	128.50M	124.70M
Total Debt	0.00	8.13B	7.28B	6.68B	5.85B	4.70B
Total Liabilities	-2.57B	15.98B	11.13B	11.07B	10.02B	8.50B
Stockholders Equity	2.57B	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	-1.19B	-1.06B	-1.24B	-799.70M
Financing Cash Flow	0.00	-1.02B	-139.20M	351.20M	1.34B	210.60M

Rane (Madras) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 796.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RML, the sentiment is Negative. The current price of 796.9 is below the 20-day moving average (MA) of 852.69, below the 50-day MA of 882.75, and below the 200-day MA of 801.92, indicating a neutral trend. The MACD of -14.48 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RML.

Rane (Madras) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	¥277.28B	14.74	6.81%	2.50%	5.07%	-23.76%
TALBROAUTO	67 Neutral	₹15.86B	16.51		0.27%	3.71%	-15.14%
PRITIKAUTO	64 Neutral	₹2.98B	17.31		―	4.41%	-20.08%
JAYBARMARU	64 Neutral	₹9.42B	18.53		0.81%	0.93%	88.44%
REMSONSIND	63 Neutral	₹4.32B	28.22		0.26%	26.47%	-4.53%
RML	59 Neutral	₹22.13B	78.82		1.00%	30.38%	-20.93%
SHIVAMAUTO	46 Neutral	₹3.66B	―		―	-3.34%	-61.12%

Rane (Madras) Limited Corporate Events

Rane (Madras) Limited Announces Trading Window Closure Ahead of Financial Results

Rane (Madras) Limited has announced the closure of its trading window in compliance with SEBI regulations, as it prepares to hold a Board of Directors meeting on August 5, 2025. The meeting will focus on reviewing and approving the company’s unaudited financial results for the quarter ending June 30, 2025, with the trading window remaining closed until August 7, 2025, to ensure compliance and prevent insider trading.